The procedure by which significant changes may be made to a partnership, such as admission of a new partner or termination of the partnership, are governed by each state so no partnership agreement is needed. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Martin would like to insure valuable personal property limited in coverage by his homeowners policy. Martin has two options. He can purchase the coverage through a separate personal articles floater policy or he can add an endorsement to his homeowners policy. The endorsement is called the A) extended coverage endorsement. B) scheduled personal property endorsement. […]
Date: September 19th, 2020
D’Anthony borrowed $50,000 today that he must repay in 15 annual end-of-year installments of $5,000. What annual interest rate is D’Anthony paying on his loan? A) 5.556% B) 33.33% C) 2.222% D) 3.333% ANSWER A
Date: September 19th, 2020
Carolyn is considering the purchase of a large (60-foot) boat. She called her insurance agent to see if she needs a separate policy for the boat. The agent said that a special category of insurance policies was designed to insure large watercraft. These policies are called A) yacht insurance policies. B) flood insurance policies. C) […]
Date: September 19th, 2020
Calculate an EBIT break-even between a debt firm (DF) and an all-equity firm (EF) based on the following information: DF interest = $60,000, DF number common shares = 5,000, EF number of common shares = 12,000, and tax rate = 40 percent. A) EBIT = $234,547 and EPS = 10.35 B) EBIT = $146,312 and […]
Date: September 19th, 2020
Which of the following statements concerning private placements is MOST correct? A) Private placements do not involve investment bankers. B) More than half of all private placements are sold to federal, state, or local governments or government agencies. C) Although not selling the securities to the public, investment bankers may provide advice on the evaluation […]
Date: September 19th, 2020
Based on the information in Table 4-1, the OROA is A) 24.73%. B) 46.54%. C) 52.78%. D) 39.50%. ANSWER C
Date: September 19th, 2020
Jerry built a home in a flood plain. He did not purchase flood insurance. Recently, a noted meteorologist predicted torrential rains for the area for the next 7 days. Jerry attempted to purchase flood insurance through the National Flood Insurance Program. Which flood insurance provision is likely to block Jerry’s efforts to obtain coverage for […]
Date: September 19th, 2020
What does it mean to “maximize the value of the firm”? In general, how is value created? What factors determine value and how does each affect the value of the firm? What will be an ideal response? ANSWER To maximize the value of the firm most commonly means to maximize the market capitalization […]
Date: September 19th, 2020
A pro forma ________ forecasts the timing and amount of cash inflows and cash outflows. A) income statement B) balance sheet C) cash budget D) annual report ANSWER C
Date: September 19th, 2020
