Finance

Which of the following statements about the coverage for medical payme

Which of the following statements about the coverage for medical payments to others (Coverage F) under the homeowners policy is true? A) Medical payments may be made for any resident of the named insured’s household. B) Medical expenses incurred within 3 years of an accident are covered. C) Medical payments are made only if the […]

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Date: September 19th, 2020

HighLev Incorporated borrows heavily and uses the leverage to boost it

HighLev Incorporated borrows heavily and uses the leverage to boost its return on equity to 30% this year, nearly 10% higher than the industry average. However, HighLev’s stock price decreases relative to its industry counterparts. How is this possible? A) The high levels of debt increased the riskiness of HighLev relative to its competitors. B) […]

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Date: September 19th, 2020

Which of the following situations is covered under Section II of an un

Which of the following situations is covered under Section II of an unendorsed homeowners policy? A) injuries which occur at a park resulting from a motorcycle owned by the insured B) injuries resulting from an auto not subject to registration because it is in dead storage C) injuries resulting from an auto rented by the […]

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Date: September 19th, 2020

The present value of a deferred annuity (e.g., an annuity that starts

The present value of a deferred annuity (e.g., an annuity that starts 10 years from today) can be calculated in two steps: (1 ) calculate the future value of the annuity, and (2 ) calculate the present value of the amount determined in step (1 ). Indicate whether the statement is true or false   […]

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Date: September 19th, 2020

In constructing a pro forma balance sheet a manager can estimate the a

In constructing a pro forma balance sheet a manager can estimate the accounts receivable because: A) managers typically construct a pro forma income statement prior to the balance sheet. Thus, an estimate of sales has already been made and this is critical to estimating accounts receivable. B) if the firm has already made an estimate […]

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Date: September 19th, 2020

How is risk defined? What will be an ideal response?

How is risk defined? What will be an ideal response?     ANSWER Risk means different things to different people, depending on the context and on how they feel about taking chances. While certainly acknowledging these different kinds of risk, we limit our attention to the risk inherent in an investment. In this context, risk […]

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Date: September 19th, 2020