Fall 2018 #16 (IRIS 7)
In the sample answer, it looks like we're supposed to calculate UW profit by EP-Inc Loss-DCC-A&O Inc but then later in the IEE's profit, we're adding EP and the UW profit. Isn't this double counting the UW profit?
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In the sample answer, it looks like we're supposed to calculate UW profit by EP-Inc Loss-DCC-A&O Inc but then later in the IEE's profit, we're adding EP and the UW profit. Isn't this double counting the UW profit?
Comments
It's a typo. We do not add the EP, and their 106 profit figure does not include EP that way, even though the formula next to it includes it.
They also put down div to sh as 105, whereas it should be -105, and their resulting -108 uses it that way.