John is risk manager of Alpha-2-Omega Company. John wants coverage for “direct physical loss” (“open perils” coverage) under the business and personal property (BPP) coverage form. Which causes-of-loss form should he select? A) special form B) basic form C) standard form D) broad form ANSWER Answer: A
Date: September 19th, 2020
Which of the following statements concerning terrorism insurance is (are) true? I. Terrorism insurance covers direct physical damage to the insured’s property resulting from an act of terrorism. II. Terrorism insurance and be added through an endorsement to the commercial property insurance policy or purchased as a separate, stand-alone policy. A) I only B) II […]
Date: September 19th, 2020
Depending on the firm’s current capital structure, as well as the capital structure following today’s financing decision, the firm may be implicitly deciding on future financing as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The exterior walls, the roof, and the plumbing, heating and air conditioning systems of a residential condominium can be insured through the purchase of which of the following forms? I. Condominium association coverage form II. Condominium commercial unit-owners coverage form A) I only B) II only C) both I and II D) neither I nor […]
Date: September 19th, 2020
You borrow $25,000 to be repaid in 12 monthly installments of $2,292.00. The annual interest rate is closest to A) 24 percent. B) 12 percent. C) 1.5 percent. D) 18 percent. ANSWER D
Date: September 19th, 2020
Pro forma financial statements may be valuable for which of the following reasons? A) To help us estimate how profitable a firm is expected to be B) To help determine if and how much debt financing is required C) To help banks determine if firms are likely to meet lending standards D) All of the […]
Date: September 19th, 2020
Based on the information in Table 4-2, and assuming the company’s stock price is $50 per share, the P/E ratio is A) 24.44. B) 27.50. C) 10.89. D) 14.33. ANSWER C
Date: September 19th, 2020
Tom opened a store in a mall. His store is located between a theater and a department store. Tom counts on the theater and department store to generate walk-in business at his store While his store has been successful, Tom knows that if either or both of the other businesses closed, his store would suffer […]
Date: September 19th, 2020
Beta represents the average movement of a company’s stock returns in response to a movement in the market’s returns. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Financial Managers rely on the firm’s ________ department to relay key financial data, such as cash flow statements, to aid in capital budgeting and financing decisions. A) human resources B) accounting C) marketing D) operations ANSWER B
Date: September 19th, 2020
