Which of the following statements describes a Difference in Conditions (DIC) Policy?
A) It is a type of commercial umbrella liability policy.
B) It is an open perils policy that covers perils not insured by basic property insurance contracts.
C) It is designed to cover indirect losses for which the insured has direct damage coverage.
D) It is used to settle disputes when an insured has more than one insurance policy with differing policy provisions.
Answer: B
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A _____ is a paragraph that communicates the most important overarching goal of the organization for the next few years.
A. mission statement B. corporate value C. financial statement D. scenario plan
Marketing has sole ownership of customer interaction
Indicate whether the statement is true or false
The degree of operating leverage varies with the level of
A) fixed assets. B) total debt. C) accumulated depreciation. D) total equity. E) monopoly power.
Until now, Delaware East, Inc has been an all-equity firm; its most recent market equity value was $100 mn., and its cost of equity (and cost of assets) is 15%. Now, the firm decides to increase its leverage by issuing $40 mn
in debt, with the proceeds being used to pay a dividend to shareholders. The cost of the debt is rD=7%. What is the firm's new cost of equity capital, according to Modigliani and Miller's Proposition II? a. 15.33% b. 18.20% c 20.33% d. 22.50% FORMULA: rE = rA + (D/E)[rA - rD].