Finance

For which of the following situations would there be personal liabilit

For which of the following situations would there be personal liability coverage under the homeowners policy? I. The named insured accidentally injures her husband with a hammer. II. The named insured breaks his wife’s valuable vase while practicing his golf swing. A) I only B) II only C) both I and II D) neither I […]

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Date: September 19th, 2020

Your friend, John, believes that since capital markets are efficient,

Your friend, John, believes that since capital markets are efficient, he doesn’t need to read the financial press or be involved in stock research before purchasing stocks for his portfolio. He simply throws darts at the stock pages and buys the stocks the darts hit. Is stock research and analysis important when buying and selling […]

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Date: September 19th, 2020

Benkart Corporation has sales of $5,000,000, net income of $800,000, t

Benkart Corporation has sales of $5,000,000, net income of $800,000, total assets of $2,000,000, and 100,000 shares of common stock outstanding. If Benkart’s P/E ratio is 12, what is the company’s current stock price? A) $360 per share B) $240 per share C) $96 per share D) $60 per share     ANSWER C

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Date: September 19th, 2020

Nelson Industries has a higher debt ratio than Butler, Inc., and Nelso

Nelson Industries has a higher debt ratio than Butler, Inc., and Nelson also has a higher times interest earned ratio than Butler. If Nelson and Butler both have the same amount of total assets, then A) Nelson may have more non-interest bearing liabilities, such as accounts payable, than Butler has. B) if both companies have […]

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Date: September 19th, 2020

All of the following are considered insured locations for medical paym

All of the following are considered insured locations for medical payments to others (Coverage F) under a homeowners policy EXCEPT A) a new vacation home purchased by an insured during the policy period. B) a motel room where an insured is temporarily residing. C) a hall rented by the insured for her daughter’s graduation party. […]

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Date: September 19th, 2020