Insurance companies tend to have a stock market price at a discount to the average market price (price/earnings ratio). Which of the following is not a likely reason for this relatively low market value?
a. Insurance is a highly regulated industry.
b. The insurance industry has substantial competition.
c. The accounting environment likely contributes to the relatively low market price for insurance company stocks.
d. The nature of the industry leads to standards that provide for much judgment and possible manipulation of reported profit.
e. Insurance companies typically have a high return on common equity.
E
You might also like to view...
Shaffer Company presents the following data for 2012. Net Sales, 2012 $3,007,124 Net Sales, 2011 93,247 Cost of Goods Sold, 2012 2,000,326 Cost of Goods Sold, 2011 1,000,120 Inventory, beginning of 2012 341,169 Inventory, end of 2012 376,526 The merchandise inventory turnover for 2012 is:
a. 5.6. b. 15.6. c. 7.5. d. 7.7. e. 5.2.
________ is an average of the two asymmetric lambda values. It does not make an assumption about which variable is dependent
A) Tau b B) Symmetric lambda C) Tau c D) Gamma
Which of the following options presents the right sequence of activities in developing a strategic plan for services?
A. First, identify the target market for the firm’s services; second, determine the firm’s core competency; third, define its mission and its high-level corporate goals and objectives. B. First, determine the firm’s core competency; second, identify the target market for the firm’s services; third, define its mission and its high-level corporate goals and objectives. C. First, define its mission and its high-level corporate goals and objectives; second, determine the firm’s core competency; third, identify the target market for the firm’s services. D. First, determine the firm’s core competency; second, define its mission and its high-level corporate goals and objectives; third, identify the target market for the firm’s service.
The two leadership outcomes outlined in the skills model are ______.
A. effective problem solving and performance B. motivation and personality C. knowledge and social judgment skills D. problem-solving skills and cognitive ability