Economic value added is calculated by taking (net income less the cost of all capital) times total assets. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Biff deposited $9,000 in a bank account, and 10 years later he closes out the account, which is worth $18,000. What annual rate of interest has he earned over the 10 years? A) 7.18% B) 6.45% C) 10.0% D) 9.10% ANSWER A
Date: September 19th, 2020
Which of the following statements about the characteristics of current no-fault laws is true? A) Most laws in force today are pure no-fault laws. B) Most laws apply to both bodily injury and property damage. C) Most laws permit payment of survivor benefits to a surviving spouse and children. D) States with add-on plans restrict […]
Date: September 19th, 2020
All of the following are arguments for no-fault automobile insurance laws EXCEPT A) No-fault is unnecessary as it’s easy to determine which driver was negligent when a multiple-vehicle accident occurs. B) A large portion of each premium dollar is used for purposes other than compensating accident victims for their losses. C) There are delays in […]
Date: September 19th, 2020
For a well-diversified investor, an investment with an expected return of 10% with a standard deviation of 3% dominates an investment with an expected return of 10% with a standard deviation of 5%. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The income statement describes the financial position of a firm on a given date. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Arguments often used against no-fault automobile insurance laws include all of the following EXCEPT A) It is often difficult to determine which driver was negligent when a multiple-vehicle accident occurs. B) Many injured persons will not be compensated for their full losses because payments for pain and suffering will be eliminated. C) The defects of […]
Date: September 19th, 2020
The investment banker performs three basic functions: (1 ) underwriting, (2 ) distributing, and (3 ) advising. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following statements best represents the “Agency Problem”? A) The agency problem may interfere with the implementation of maximizing shareholder wealth. B) Managers might attempt to benefit themselves in terms of salary and perquisites at the expense of shareholders. C) The agency problem results from the separation of management and the ownership of […]
Date: September 19th, 2020
How managers choose to finance the business does not affect the rate of return to shareholders because the rate of return is based on how the company uses the assets it has, not whether or not they paid for the assets with debt or equity. Indicate whether the statement is true or false […]
Date: September 19th, 2020
