1. Describe how claim function can help in achieving insurers' goals
2. Buffalo Technology Corporation’s sales fluctuate a lot more than Canyon Consumer Staples Corporation’s sales fluctuate. Assuming everything else the same for the two firms, which firm is better able to afford a higher debt ratio?
A. Buffalo Corporation
B. Canyon Corporation
C. They can afford the same debt ratio
3. The Riddell approved a new project that will generate the following figures for each year for the next 13 years: Revenue of $61 million, Operating Expenses of $23 million, and Depreciation and Amortization of $7 million. The marginal tax rate is 35%. What is Riddell's Free Cash Flow in the 5th year?
A) 25.52 million
B) 28.24 million
C) 27.15 million
D) 20.15 million
E) 29.32 million