At what rate must $287.50 be compounded annually for it to grow to $650.01 in 14 years? A) 6 percent B) 7 percent C) 5 percent D) 8 percent ANSWER A
Date: September 19th, 2020
Patricia purchased a Personal Auto Policy (PAP). Her car was rear-ended by a driver who fled the scene. Patricia suffered whiplash, migraine headaches, and she was unable to work. Which of the following coverages will cover her lost work earnings? A) medical payments B) uninsured motorists C) underinsured motorists D) bodily injury liability […]
Date: September 19th, 2020
A vehicle is considered a constructive total loss when A) it cannot be repaired. B) the repair cost exceeds the actual cash value. C) it can be repaired, but the insured prefers a cash settlement. D) it can be repaired, but the insurer prefers a cash settlement. ANSWER Answer: B
Date: September 19th, 2020
The Securities and Exchange Commission (SEC) A) regulates both primary and secondary markets. B) regulates initial public offerings, but not seasoned equity offerings, in the primary market. C) regulates only initial public offerings, or IPOs. D) regulates only primary market transactions to ensure investors are provided with adequate and accurate information on new securities. […]
Date: September 19th, 2020
Common stockholders’ equity equals common stock issued minus treasury stock. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Investors generally don’t like risk. Therefore, a typical investor A) will only accept a zero return if the risk is zero. B) will not be induced to take on any risk. C) will only take on additional risk if he expects to be compensated in the form of additional return. D) will only take on […]
Date: September 19th, 2020
Rob purchased a Personal Auto Policy (PAP) with collision and other-than-collision coverage. Which of the following losses would be covered under his policy? A) Rob wrecked his car while using it as a taxi cab. B) Thieves took Rob’s radar detector from his car. C) A flash flood washed Rob’s car off the road and […]
Date: September 19th, 2020
You decide you want your child to be a millionaire. You have a son today and you deposit $10,000 in an investment account that earns 7% per year. The money in the account will be distributed to your son whenever the total reaches $1,500,000. How old will your son be when he gets the money […]
Date: September 19th, 2020
The relevant variable a financial manager uses to measure returns is A) net income determined using generally accepted accounting principles. B) cash flows. C) dividends. D) earnings per share minus dividends per share. ANSWER B
Date: September 19th, 2020
Angie was injured when her car was struck by a driver who ran a red light. The other driver carried the minimum liability coverage necessary to be considered financially responsible. Angie’s injuries were $15,000 above the minimum bodily injury limit. There is a coverage that can be added to the PAP that applies when a […]
Date: September 19th, 2020
