6. Value of insurance companies The valuation of an insurance company depends on changes in its expected cash flows, 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? O A(V) = f[AE(CF), Ak] (V) = f[(CF)/k] O A(V) = f[Ak/AE(CF)] O A(V)= f[ECF,k] Which of the following are true regarding factors that affect an insurance company's cash flows? Check all that apply. Insurance regulation, technology, and competition have a significant impact on an insurance company's cash flows. Management skills and abilities do not impact cash flows of insurance companies. The payouts on insurance claims are somewhat stable for most property and casualty (PC) claims for most PC companies, relative to payouts on life insurance claims for life insurance companies. O A recession will most likely decrease an insurance company's cash flows. Liquidity Ratio (percent) Insurance Company Pathway Insurers 99 Enscomp 77 Stillery, Inc. 88 Williams Insurance 90 Rushing, Inc. Based solely on liquidity, which insurance company is the most capable of servicing its short-term financial obligations? O Pathway Insurers O Stillery, Inc. O Williams Insurance O Enscomp O The Rushing, Inc. 6. Value of insurance companies The valuation of an insurance company depends on changes in its expected cash flows, 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? O A(V) = f[AE(CF), Ak] (V) = f[(CF)/k] O A(V) = f[Ak/AE(CF)] O A(V)= f[ECF,k] Which of the following are true regarding factors that affect an insurance company's cash flows? Check all that apply. Insurance regulation, technology, and competition have a significant impact on an insurance company's cash flows. Management skills and abilities do not impact cash flows of insurance companies. The payouts on insurance claims are somewhat stable for most property and casualty (PC) claims for most PC companies, relative to payouts on life insurance claims for life insurance companies. O A recession will most likely decrease an insurance company's cash flows. Liquidity Ratio (percent) Insurance Company Pathway Insurers 99 Enscomp 77 Stillery, Inc. 88 Williams Insurance 90 Rushing, Inc. Based solely on liquidity, which insurance company is the most capable of servicing its short-term financial obligations? O Pathway Insurers O Stillery, Inc. O Williams Insurance O Enscomp O The Rushing, Inc