Chapter 7: Investment Decision Rules Flashcards
1
Q
Capital Budgeting
A
The process of analyzing investment opportunities and deciding which ones to accept
2
Q
Financing Decisions
A
How to fund the investments
3
Q
RBC
A
Risk based capital - Used to identify weakly capitalized companies
4
Q
RBC Ratio
A
Numerator is basically capital and surplus in the statutory annual statement. Denominator is the Minimum Required Surplus as calculated by the regulator
5
Q
A
