Didi carefully considers price, sound quality, and the size of a new stereo system. The sound quality is the most important factor, followed by the price. The evaluation model being used by Didi is:

In order to be financially solvent, an insurer must accomplish all of the following, except:

A. Reinsure any risk in excess of state retention limits. B. Possess enough assets to cover its liabilities. C. Maintain an amount at least equal to its required minimum paid-in capital. D. Contribute a specific amount of capital reserves to the state.

Jensen Inc. has net earnings of $24,000,000 this year and a dividend payout policy of 40% of earnings. If the firm follows its regular payout policy what will be the addition to retained earnings this year?

A) $9,600,000 B) $12,000,000 C) $14,400,000 D) $16,000,000