Reference no: EM131844128
Case Application: Duke is a college senior who is majoring in marketing. He owns a high-mileage 2010 Range Rover Sport that has a current market value of $15,000. The current replacement value of his clothes, an 88 inch Samsung Curved 4K SUHD TV, BlueRay DVD player, home theater system with Hart Audio D&W Aural Pleasure speakers, AirPods, Iphone, Ipad, Lenovo laptop computer, jewelry and other personal property in a rented apartment totals $5,125,585. He uses disposable contact lenses, which cost $800 for a six-month supply. He also has a waterbed in his rented apartment that has leaked in the past. An avid runner, Duke funs five miles daily in a nearby public park that has the reputation of being extremely dangerous because of drug dealers, numerous assaults
For each of the following risks or loss exposures, identify an appropriate risk management technique that could have been used to deal with the exposure. Briefly explain your answer (a couple of sentences). List your answer and explanation below:
a. Physical damage to the Range Rover Sport because of a collision with another motorist.
b. Liability lawsuit against Duke arising out of the negligent operation of his car.
c. Total loss of his personal property because of a grease fire in the kitchen of his rented apartment.
d. Disappearance of one contact lens.
What is the company unlevered cost of equity capital
: What is the company’s cost of equity capital? What is the company’s unlevered cost of equity capital?
|
What are you going to do to deal with steve
: You are the dean of a large, public university business school. You have 7 tenured professors in the business school.
|
What is the company debt–equity ratio
: What is the company's debt–equity ratio? What is the cost of capital for an otherwise identical all-equity company?
|
Under which form of financing is tom likely to work harder
: Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Under which form of financing is Tom likely to work harder?
|
Identify an appropriate risk management technique
: Duke is a college senior who is majoring in marketing. He owns a high-mileage 2010 Range Rover Sport that has a current market value of $15,000.
|
How much should you invest today to achieve your objective
: How much should you invest today to achieve your objective?
|
What legal theories covered would be applicable
: THE CASE Caesar Barber, from the Bronx, New York, weighs 272 pounds. He filed a lawsuit against McDonald's, Kentucky Fried Chicken, Wendy's, and Burger King.
|
Suffers from dramatic seasonal variation in taxable income
: Altidore Inc. operates a calendar-year-end business that suffers from dramatic seasonal variation in taxable income.
|
Evaluating extra dividend versus share repurchase
: Hodgkiss Corporation is evaluating an extra dividend versus a share repurchase. What will the company’s EPS and PE ratio be under the two different scenarios?
|