Jenkins Company purchased a commercial umbrella policy with a 10 ...

[newyorker26]

Jenkins Company purchased a commercial umbrella policy with a 10 million limit and a 100,000 self-insured retention.
 
  The insurer required Jenkins Company to carry a 1 million per-occurrence limit on its general liability policy and a 1 million per-occurrence limit on its business auto policy. Jenkins purchased these required limits. A Jenkins driver was negligent while operating a company vehicle and killed another motorist. The court ruled that Jenkins must pay 5 million. How much of this amount will be paid by the umbrella policy?
  A) 1.0 million
  B) 3.9 million
  C) 4.0 million
  D) 5.0 million

Question 2

The ________ is the maximum a firm can grow with internally generated equity and new borrowing sufficient to maintain the current long-term-debt to equity ratio.
 
  A) internal growth rate
  B) sustainable growth rate
  C) return on equity
  D) return on assets

[ApricotDream]

Answer to Question 1

Answer: C

Answer to Question 2

B

[newyorker26]

Excellent

[jordangronback]

TYSM