A navigation error caused a cargo ship to run aground on a reef. The ship, valued at $1.5 million, was carrying $1.5 million in grain and $1.5 in electronic devices. The ship sustained a $150,000 physical damage loss. If this loss is a “particular average” loss, how will the loss be settled? A) The owners […]
Date: September 19th, 2020
Based on the information in Table 4-2, the debt ratio is A) 28.12%. B) 42.03%. C) 45.69%. D) 34.74%. ANSWER C
Date: September 19th, 2020
Optimal Capital Structure MAXIMIZES the firm’s overall cost of capital. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The true owners of the corporation are the A) board of directors of the firm. B) holders of debt issues of the firm. C) common stockholders. D) preferred stockholders. ANSWER C
Date: September 19th, 2020
Given the following financial statements for ARGON Corporation, what is the company’s after-tax cash flow from operations? Income Statement Balance Sheet Year Ended 12/31/10 12/31/2010 12/31/2009 Sales $1,300,000 Current Assets $50,000 $45,000 Cost of Goods Sold 750,000 Fixed Assets 430,000 350,000 Operating Expenses 200,000 Total Assets $480,000 $395,000 Depreciation 100,000 EBIT 250,000 Current Liabilities $35,000 […]
Date: September 19th, 2020
There are a number of implied warranties in ocean marine insurance. One implied warranty is that the vessel is properly constructed and maintained, and that it is properly equipped for the voyage to be undertaken. This implied warranty is the warranty of A) seaworthiness. B) barratry. C) no deviation from planned course. D) legal purpose. […]
Date: September 19th, 2020
All of the following are considered to be instrumentalities of transportation and communication for purposes of inland marine insurance EXCEPT A) trains. B) tunnels. C) transmission lines. D) television towers. ANSWER Answer: A
Date: September 19th, 2020
Which of the following is NOT true for a limited partnership? A) Limited partners may sell their interest in the company. B) It has limited liability for its owners. C) One general partner must exist who has unlimited liability. D) Only the name of general partners can appear in the name of the firm. […]
Date: September 19th, 2020
Each functional area is, in some way, involved in the generation or consumption of cash. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Based on the information in Table 4-2, the acid-test ratio is A) 2.15. B) 1.39. C) 1.33. D) 1.17. ANSWER D
Date: September 19th, 2020
