In a decision tree, outcome points are under direct control of the decision maker and show the results of choices
Indicate whether the statement is true or false.
Answer: FALSE
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What methods might a firm use when pricing based on a profit orientation and how do they differ?
What will be an ideal response?
A holding company is a company whose business activity consists of holding shares in another company.
Answer the following statement true (T) or false (F)
If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 8.5%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?
A. 1.90% B. 2.09% C. 2.30% D. 2.53% E. 2.78%
In Cove Management v. AFLAC, Galgano, an independent contractor who solicited insurance business for AFLAC, rented office space from Cove under AFLAC's name. When Galgano defaulted on payments, Cove sued AFLAC contending that Galgano was its agent when he rented the office, so AFLAC was liable. The appeals court held that AFLAC was liable as it had given Galgano apparent authority to make the
lease. a. True b. False Indicate whether the statement is true or false