The difference between the price the corporation gets and the public offering price is called the broker-dealer spread. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following statements is true with respect to a pure no-fault auto insurance plan? A) Under such a plan, you would collect from your own insurer and retain the right to sue the other party if your injuries surpass a dollar or verbal threshold. B) Most no-fault plans that have been adopted by […]
Date: September 19th, 2020
A no-fault law under which benefits are paid to an accident victim without regard to fault and the accident victim can still sue the negligent driver who caused the accident is referred to as a(n) A) pure no-fault law. B) add-on no-fault law. C) modified no-fault law. D) choice no-fault law. ANSWER Answer: […]
Date: September 19th, 2020
A rational investor will always prefer an investment with a lower standard deviation of returns, because such investments are less risky. 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
One weakness of the times interest earned ratio is that it includes only the annual interest expense as a finance expense and ignores other financing items such as lease payments that must be paid. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Consider the after-tax cash flows for Project S and Project L: Project S Project L Year 1 $3000 0 Year 2 0 $3000 A rational person would prefer ________. A) Project L because they can avoid taxes by receiving cash flows later B) Project S because the money can be reinvested sooner C) information about […]
Date: September 19th, 2020
Explain the difference between (a) public offerings and private placements, (b) primary markets and secondary markets, (c) the money market and the capital market, and (d) organized security exchanges and over-the-counter markets. What will be an ideal response? ANSWER In a public offering, securities are usually made available to the public at large […]
Date: September 19th, 2020
Kelly was hit by a car while she was walking to the park. She incurred $750 in medical costs at a hospital emergency room. Kelly has coverage for this charge under which of her Personal Auto Policy (PAP) coverages? A) bodily injury liability B) other-than collision C) medical payments D) collision ANSWER Answer: […]
Date: September 19th, 2020
The appraisal provision in the Personal Auto Policy is used to determine the A) value of a loss payable under property damage liability. B) amount paid for a physical damage loss to the insured’s auto if the insured and insurer disagree. C) amount of auto insurance that should be purchased for an older/antique car. D) […]
Date: September 19th, 2020
