Model Case Triggers
1 Management Case
2 Refinance w/ $30.0 Term Loan, $70.0 High Yield
Sources of Funds
New Term Loan
New Sr. Sub. Notes
Sources and Uses o
OPERATING LEVERAGE EXAMPLE
Impact in a Growth Year
LOW OPERATING LEVERAGE
HIGH OPERATING LEVERAGE
COPYRIGHT (C) FACTSET RESEARCH SYSTEMS INC. ALL RIGHTS RESERVED.
A. 100% Va
A systemic risk is a risk that _
A Can cause the collapse of an entire financial system
Proponents of federal regulation of insurance cite all the following advantages of federal regulation
A Greater opportunity for innovation.
Mark has been an underwriter for 20 years. An application he recently reviewed looked odd to
him. The building value in the application seemed far too high, and Mark suspected the applicant
might be planning to destroy the property aft
Mason Industries has three identical manufacturing plants, one on the Texas Gulf Coast, one in
southern Alabama, and one on the Florida Atlantic Coast. Each plant is valued at $50 million.
Mason's risk manager is concerned about the da
All the following losses are examples of direct property losses except:
A The cost of renting a substitute vehicle while a collision-damaged car is being repaired
The use of fire resistant materials in building construction is an examp
Running head: MBA 6060 Cost of Capital Project
COST OF CAPITAL PROJECT
Bowling Green State University
MBA 6060 Cost of Capital Project
Overall Operations of Tiffany & Co.
Tiffany & Co. is a holding company that oper
Ch. 6 Review Questions
1. How does ratemaking, or the pricing of insurance, differ from the pricing of other products?
Ratemaking in insurance takes the rate and multiplies it by the number of exposure units to determine the
premium paid. Insur
Ch. 9 Review Questions
1. a) Explain the principle of indemnity.
When the insurer agrees to pay no more than the actual amount of the loss
b) How is actual cash value calculated?
The method for indemnifying the insured is based on the actual ca
Ch. 5 Review Questions
1. Describe the basic characteristics of stock insurers.
Prime responsibility is to earn profits for stockholders
Stockholders appoint board of directs who appoint executive officers
Must pick the right people for boar
Ch. 8 Review Questions
1. Explain why the insurance industry is regulated.
Mountain insurer solvency
Compensate for inadequate consumer knowledge
Ensure reasonable rates
Make insurance available
2. Briefly explain the basic principles of un
Ch. 4 Review Questions
1. Name three speculative financial risks that may be considered by a risk manager.
Commodity Price Risk
Interest Rate Risk
Currency Exchange Risk Rate
2. How does enterprise risk management differ from traditional ris
Chapter 1 Review Questions
1. a) Explain the historical definition of risk.
There is no single definition of risk, but risk has traditionally been defined in terms of uncertainty. Risk can
be defined as uncertainty concerning the occurrence of
Ch. 3 Review Questions
1. What is the meaning of risk management?
Risk management is a process that identifies loss exposures faced by an organization and selects the most
appropriate techniques for treating such exposures.
2. Explain the objec
Ch. 7 Review Questions
1. a) What are the three major sections of a balance sheet?
Assets, liabilities, surplus + capital
b) What is the balance sheet equation?
Assets = Liabilities + Owners Equity
2. a) What types of assets appear on the balan
Ch. 2 Review Questions
1. Explain each of the following characteristics of a typical insurance plan
a) Pooling of Losses the spreading of losses incurred by the few over the entire group, so that in
the process, average loss is substituted for
Ch. 10 Review Questions
1. Identify the basic parts of an insurance contract.
2. a) Describe the major types of exclusions typically found in insu
MGT 2100: Introduction to Management and Organizations
Integrated Business Cluster
Spring 2017 Version 1
Professor: Tammy Reynolds
401 C Copeland Hall
Office Hours: M&W 12:30-2:00; 3:30-5:00
What You Will Learn From This Chapter
What a valuation technology looks like
How a valuation model provides the architecture for fundamental analysis
How the financial statements are involved in fundamental analysis
How one converts a forecast to a valuat
Introduction to Financial Statements
Financial Markets: Security Analysts, PMs, Board of Directors
How the financial statements fit together (or articulate)
The accounting relations that govern the financial statements
The stocks and flow equation tha
Investment Valuation using Dividends
and Quantitative Financial Modeling
The Big Picture in This Chapter
A valuation model is a method of accounting for value
Discounted cash flow (DCF) valuation employs cash
accounting for valuation
Exam 2 will include about 20-25 multiple questions in total with 10-15 conceptual
questions and 8-10 problem type questions. All problem questions will be similar to the
ones in this study guide and previous homework. Conceptual questions will be selected
Fixed Income Analysis, Alternative
Lecture 4: Hedge
Copyright (c) by Bolong Cao 2012. All rights reserved.
popularity in the 1990s
22,350 funds (7200 FoF)