Finance

Wheeler Corporation had retained earnings as of 12/31/10 of $15 millio

Wheeler Corporation had retained earnings as of 12/31/10 of $15 million. During 2011, Wheeler’s net income was $7 million. The retained earnings balance at the end of 2011 was equal to $20 million. Therefore, A) Wheeler paid a dividend in 2010 of $5 million. B) Wheeler purchased treasury stock in 2010 for $2 million. C) […]

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Date: September 19th, 2020

David has a Homeowners 3 policy that provides $280,000 of insurance on

David has a Homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a roof with a replacement value of $16,000 but an actual cash value of $10,000 is destroyed in a fire? A) $10,000 B) $12,000 […]

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Date: September 19th, 2020

You are thinking of adding one of two investments to an already well-

You are thinking of adding one of two investments to an already well- diversified portfolio. Security A Security B Expected Return = 14% Expected Return = 16% Standard Deviation of Standard Deviation of Returns = 16% Returns = 20% Beta = 1.2 Beta = 1.2 If you are a risk-averse investor, which one is the […]

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Date: September 19th, 2020

How does compound interest differ from simple interest? What will be

How does compound interest differ from simple interest? What will be an ideal response?     ANSWER Compound interest occurs when interest paid on the investment during the first period is added to the principal; then, during the second period, interest is earned on this new sum. The situation in which interest is earned on […]

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Date: September 19th, 2020

Which of the following is (are) included among the duties of an insure

Which of the following is (are) included among the duties of an insured following a loss covered under the Homeowners 3 policy? I. To file a proof of loss within a specified time period after the insurer’s request II. To prepare an inventory of damaged personal property A) I only B) II only C) both […]

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Date: September 19th, 2020

Which of the following is a general exclusion under Section I of the H

Which of the following is a general exclusion under Section I of the Homeowners 3 policy? A) Water damage caused by accidental discharge from a household appliance. B) Losses due to the failure of the insured to use all reasonable means to save and preserve property after the time of a loss. C) Losses resulting […]

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Date: September 19th, 2020