1.

Capital structure management is one of the activities that corporate finance departments can apply to most business organizations. It is characterized by

Available answer options

Select only one option

A

Focusing on a corporations short-term needs for cash and other resources.

B

Focusing on raising capital, as well as the specific financial vehicles that will be used.

C

Focusing on accounting, taxation, and financial reporting.

D

Focusing on planning and managing a corporations long-term investments.

2.

An insurance broker had been placing business with a certain insurance company for many years. A client told the broker she was unsure whether that insurer should be used because of "solvency concerns." The broker decided to investigate further. Which financial statement will the broker examine to determine the financial strength of the insurer?

Available answer options

Select only one option

A

Income statement

B

Statement of comprehensive income

C

Statement of cash flows

D

Balance sheet

3.

Cornerstone Insurance Companys total assets according to statutory accounting are $570 million. The market value of the assets is $600 million. The present value of the companys liabilities is $400 million. Assuming a market value margin of $20 million, what is Cornerstones market value surplus (MVS)?

Available answer options

Select only one option

A

$150 million

B

$160 million

C

$180 million

D

$220 million