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
Which of the following statements about modified no-fault laws is (are) true? I. Claims less than a certain dollar threshold must be assumed by the injured accident victim, but the injured person has the right to sue a negligent driver. II. Claims above a certain dollar threshold are paid in full by an injured accident […]
Date: September 19th, 2020
What is the present value of $11,463 to be received 7 years from today? Assume a discount rate of 3.5% compounded annually and round to the nearest $1. A) $7,210 B) $5,790 C) $6,508 D) $9,010 ANSWER D
Date: September 19th, 2020
Which of the following statements about uninsured motorists coverage is true? A) An innocent motorist must establish that the uninsured motorist is legally liable. B) The amount of coverage in most states must be at least $300,000. C) Property damage is covered in all states but bodily injury is not covered in all states. D) […]
Date: September 19th, 2020
Economic Value Added attempts to measure a firm’s economic profit rather than its accounting profit. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
