Auto insurance coverage

Assignment Help Financial Management
Reference no: EM131062888

Kurt Simmons has 80/150/15 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $8,100, and damage to the store was $24,820. a. What amount will the insurance company pay for the damages? Insurance payment $ b. What amount will Kurt have to pay?

Reference no: EM131062888

Questions Cloud

Which would require the purchase of piece of equipment : Middlefield Motors is evaluating project A, which would require the purchase of a piece of equipment for 382,000 dollars. During year 1, project A is expected to have relevant revenue of 193,000 dollars, relevant costs of 66,000 dollars, and some dep..
What is the relevant operating cash flow : Fairfax Paint operates stores in Virginia. The firm is evaluating the Vienna project, which would involve opening a new store in Vienna. The tax rate is 45 percent. What is the relevant operating cash flow (OCF) for year 1 of the Vienna project that ..
What would be the future value of the annual savings : Karen and Mike currently insure their cars with separate companies, paying $900 and $1,100 a year. If they insured both cars with the same company, they would save 15 percent on the annual premiums. What would be the future value of the annual saving..
What is the firm after-tax component cost of debt : A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $565.86. The company's federal-plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calculat..
Auto insurance coverage : Kurt Simmons has 80/150/15 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. What amount will the insurance company pay for the damages? What amount will Kurt have to..
How much of this judgment would the insurance cover : Becky Fenton has 70/140/80 automobile insurance coverage. If two other people are awarded $115,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover?
What is the expected return on this stock : The stock of Wiley United has a beta of 0.92. The market risk premium is 8.6 percent and the risk-free rate is 3.2 percent. What is the expected return on this stock?
Common stock-what is its WACC : Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 30%, rd = 6%, rps = 7.1%, and rs = 12%. If Shi has a target capital structure of 30% debt, 5% preferre..
Cost of common equity-common stock is currently trading : Summerdahl Resorts' common stock is currently trading at $21.00 per share. The stock is expected to pay a dividend of $1.50 a share at the end of the year (D1 = $1.50), and the dividend is expected to grow at a constant rate of 5% a year. What is the..

Reviews

Write a Review

Financial Management Questions & Answers

  What must the coupon rate be on these bonds

DMA Corporation has bonds on the market with 18.5 years to maturity, a YTM of 6.5 percent, and a current price of $1,048. The bonds make semi annual payments and have a par value of $1,000. What must the coupon rate be on these bonds?

  Which one has the most unsystematic risk

Consider the following information about Stock I and II. State of Economy Probability of State of Economy Rate of Returns If State Occurs. Which one has the most unsystematic risk? Which stock is riskier? Explain

  Assignment brief financial management assignmentnbsp1

assignment brief financial management assignment.nbsp1. critically evaluate the role and function of finance including

  About the stock repurchases

Beta Industries has net income of $3,100,000, and it has 350,000 shares of common stock outstanding. The company's stock currently trades at $48 a share. Beta is considering a plan in which it will use available cash to repurchase 30% of its shares i..

  Pink sheets are traded

"Pink sheets" are traded on the

  Several audit reports on optimal operational processes

Niles, an accountant, certifies several audit reports on Optimal Operational Processes, Inc., Niles’s client, knowing that the company intends to use the reports to borrow money from Prime Business Lending Company to buy new equipment.

  What is this firms debt–equity ratio

Kindle Fire Prevention Corp. has a profit margin of 4.8 percent, total asset turnover of 2.0, and ROE of 19.34 percent. What is this firm’s debt–equity ratio?

  Working in business to learn the ropes

You have a two children, A and B. Child A is not going to college but is working in a business to learn the ropes. Child A plans on opening a business someday. Child B is attending college. You put a certain amount of money into an account.

  Due to the integrated nature of their capital markets

Due to the integrated nature of their capital markets, investors from the U.S. and the UK require the same real interest rate, 2.5% for their loans. There is consensus in the capital markets that the inflation rate will probably annual of 1.5% in the..

  Calculated financial ratios against the industry benchmarks

Calculate the financial ratios for the assigned Walmart Stores, and then interpret those results against company historical data as well as industry benchmarks: Compare the financial ratios with each of the preceding three (3) years. Compare the calc..

  What is the enterprise value-EBITDA multiple

The market value of the equity of Thompson, Inc., is $307,000. The balance sheet shows $22,000 in cash and $200,000 in debt, while the income statement has EBIT of $97,000, and a total of $136,000 depreciation and amortization. What is the enterprise..

  What is the price of put option with the same exercise price

A call option is currently selling for $4.70. It has a strike price of $115 and four months to maturity. The current stock price is $117, and the risk-free rate is 3 percent. The stock will pay a dividend of $2.15 in two months. What is the price of ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd