A combined ratio greater than one (or one hundred percent) indicates profitable underwriting.

The capital structure for the CR Corporation is the following: bonds $5,500, and common stock $11,000. If CR has an after-tax cost of debt of 6%, and a 16% cost of common stock, what is its WACC?

A) 9.33% B) 12.67% C) 13.33% D) 14.67%

For industrial purchases the purchasing cycle can last for several years

Indicate whether the statement is true or false