How much of the insurance premium should be allocated

Assignment Help Finance Basics
Reference no: EM13289630

The owner of a convenience store is considering adding a take-out sandwich section to her offerings. The new activity will occupy 25% of the space and account for 30% of total revenues. Property insurance on the building is $9,000 per year and will not change because of the new activity. How much of the insurance premium should be allocated to the new product line?

A) $2,700
B) $2,475
C) $2,250
D) $0.00

 

Reference no: EM13289630

Questions Cloud

Find voltage across whole combination and in each resistor : a) what is the total resistance of the whole combination b)if the current passing through the combination is 4 amp.find thevoltage across the whole combination and in each resistor c)find the current in each resistor.
Explain what is the chemical formula of each precipitate : This precipitate is removed and excess H SO is then added to the solution which forms a precipitate. This precipitate is removed and excess NaOH is added to the supernatant until the solution is strongly basic. The addition of the NaOH does not pr..
What is the best estimate of the current stock price : Its dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return is 12%. What is the best estimate of the current stock price?
What is the magnitude of the horizontal net force : A 1530 kg car is traveling with a speed of 14.5 m/s. What is the magnitude of the horizontal net force
How much of the insurance premium should be allocated : Property insurance on the building is $9,000 per year and will not change because of the new activity. How much of the insurance premium should be allocated to the new product line?
Determine her initial speed as she leaves the board : A diver springs upward from a board that is 3.15 meters above the water. Determine her initial speed as she leaves the board
State requirements for land reclamation projects : Trained as a mining engineer, David has developed considerable expertise in the treatment and disposition of waste material. He also is well versed in the federal and state requirements for land reclamation projects
Design a current amplifier that will produce in a load : a). Design a current amplifier that will produce in a 1kohm load, five times the current supplied to it. b). If the input current supplied to the amp is 2 mA, what should be the mag of the max output voltage of the amp
Explain what will be the final concentration of the seawater : what will be the final concentration of the seawater at 20 °C when reverse osmosis stops? Assuming that seawater has a total ion concentration (a.k.a colligative molarity) of 1.10 Mc, calculate how many liters of seawater are needed to produce 15...

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss the primary purpose of an organization

Discuss and explain the differences in functions between the Accounting Department of a firm, its Finance Department and its outside accounting firm.

  Should tom swift accept the project

Tom Swift's new project has a projected return of 11.9%. The risk-free return is 10% and the market risk premium is 5%. All firms have a marginal tax rate of 40%. Tom Swift's before-tax cost of debt is 13%.

  Adjustable rate mortgages and rate on fixed rate mortgages

How does the initial rate on adjustable-rate mortgages different from the rate on fixed-rate mortgages? Explain your reasoning.

  What is the annual value of the depreciation tax shield

The project is expected to increase annual sales by $338,000 and annual cash expenses by $184,000. The company has a marginal tax rate of 32 percent. What is the annual value of the depreciation tax shield?

  Examine and evaluate the disparity

Examine and evaluate the disparity of your state's budget allocation for education and property tax to the various localities.

  Determine impact of the strong singapore dollar

The Singapore dollar rose by 9 percent in real terms against the United State dollar. What was the likely impact of the strong Singapore dollar on United State electronics manufacturers using Singapore as an export platform?

  Refinancing of short-term debt

Medvedev Inc., issued $10,000,000 of short-term commerical paper during the year 2006 to finance construction of a plant. What would your answer be if, instead of a refinancing at the date above of issuance of the financial statements, a financing ..

  Computation of first three years schedule of loan

Computation of first three years schedule of loan and the requires that Dagnay pay off the loan over a twenty-year period

  Computing rate of return for annuities

Your insurance agent is trying to sell you an annuity that costs $230,000 today. By purchasing this annuity, your agent promises which you will receive payments of $1,225 a month for next 30 years.

  Calculate future value of common stock

The last dividend paid by Klein Corporation was $2. Klein's growth rate is expected to be a constant 5 percent for next three years, after which dividends are expected to increase at a rate of 10%.

  What if the discount rate is 10 percent

An investment project costs $15,000 and hasannual cash flows of $3,800 for six years.

  What nominal annual interest rate is built into monthly plan

The first plan requires a $4,000 immediate up-front payment. The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan?

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