________ Insurance Serves as a Backup for Expenses Not Covered

question 100

Multiple Choice

________ insurance serves as a backup for expenses not covered by basic health insurance.

• A) Excess hospitalization insurance
• B) Surgical expense insurance
• C) Major medical insurance
• D) Physician expense insurance

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Definitions:

Target Capital Structure

The mix of debt, preferred stock, and common equity that a company aims to hold to minimize its cost of capital and maximize its market value.

Forecasted Net Income

Forecasted net income is an estimate of a company's future profits after all expenses and taxes have been subtracted from revenues.

Total Dividends

The sum of all dividend payments made by a company to its shareholders over a specified period, usually a fiscal year.

Residual Dividend Policy

A policy wherein dividends are based on the earnings left over after all operating expenses and expansion projects are funded.