When constructing a pro forma income statement, which of the following is likely to be calculated first among the items listed? A) dividends B) taxes C) cost of goods sold D) interest expense ANSWER C
Date: September 19th, 2020
Assume that you have $100,000 invested in a stock that is returning 14%, $150,000 invested in a stock that is returning 18%, and $200,000 invested in a stock that is returning 15%. What is the expected return of your portfolio? A) 15.67% B) 14.97% C) 13.25% D) 15.78% ANSWER D
Date: September 19th, 2020
The major difference between the dwelling coverage (Part A) of the Homeowners 2 (Broad From) policy and the Homeowners 3 (Special Form) policy is that A) the HO-3 provides open perils (“all risks”) coverage and the HO-2 provides named-perils coverage. B) the HO-3 provides actual cash value coverage, the HO-2 provides replacement cost coverage. C) […]
Date: September 19th, 2020
An analyst is evaluating two companies, A and B. Company A has a debt ratio of 50% and Company B has a debt ratio of 25%. In his report, the analyst is concerned about Company B’s debt level, but not about Company A’s debt level. Which of the following would best explain this position? A) […]
Date: September 19th, 2020
Which of the following statements about the Homeowners 3 policy is (are) true? I. Losses to the dwelling are always settled on an actual cash value basis. II. Coverage on personal property is limited to $5,000. A) I only B) II only C) both I and II D) neither I nor II ANSWER […]
Date: September 19th, 2020
Which of the following statements about the Homeowners 8 policy is (are) true? I. Losses to the dwelling are settled on a replacement cost basis if the dwelling is insured for its full market value. II. It is designed primarily for expensive, newer, dwellings. A) I only B) II only C) both I and II […]
Date: September 19th, 2020
Persons insured under Section I of the Homeowners 3 policy include which of the following? I. A spouse of the named insured if living in the same household II. The named insured’s children who are under age 24 and who are full-time college students A) I only B) II only C) both I and II […]
Date: September 19th, 2020
You borrow $30,000 and agree to pay it off with one lump sum payment of $40,000 in 6 years. What annual rate of interest will you be charged? What will be an ideal response? ANSWER 4.91%
Date: September 19th, 2020
The investment banker prefers to avoid a negotiated purchase because it tends to be the least profitable arrangement for the investment banker. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
When constructing pro forma income statements which of the following is the last item to be estimated? A) sales B) the change in retained earnings C) depreciation expense D) taxes ANSWER B
Date: September 19th, 2020
