6. Value of insurance companies The valuation of an insurance company depends on changes in its expected cash nows, CF, and changes in the required rate of return by investors, k. Mathematically, the value of an insurance company can be modeled using which of the following? A(V) = SECF.K) A (V) = S(AE(CF), Ak] A(V) = f(AK/AECHI A(V) = SIAE(CFWAK) Which of the following are true regarding factors that affect an insurance company's cash flows? Check all that apply. A recession will most likely decrease an insurance company's cash flows, Some insurance company assets, such as bonds, are negatively impacted by rising interest rates Management skills and abilities do not impact cash flows of insurance companies Insurance regulation, technology, and competition have a significant impact on an insurance company's cash rows. Insurance Company Liquidity Ratio (percent) 98 Pathway Insurers 78 86 Enscomp Stillery, Inc. Williams Insurance Rushing, Inc. 94 83 Based solely on liquidity, which Insurance company is the least capable of servicing its short-term financial obligations? The Rushing, Inc. Stillery, Inc Pathway Insurers Williams Insurance Enscomp