What is the net insurance recovery

Assignment Help Finance Basics
Reference no: EM133004120

A manufacturer completed a business income work sheet for the recent policy period based on operating 6 months per year (after plant summer shutdown and usual employee paid holidays). The annual business income value is $9 million with an 80 percent coinsurance clause. The insured limit is $7.5 million. .A fire occurs and damages key equipment, and the plant must shut down for 3 months. A business income claim of $2.7 million is filed with the property insurer. What is the net insurance recovery?

Reference no: EM133004120

Questions Cloud

Calculate the subscription price for a new share : The ex-rights price of the stock is $21.68, and the rights-on price is $25.84. What is the subscription price for a new share?
Generate the payoff and profit function : At time = 0, the price of Company A stock is 40. Suppose the annual effective interest rate is 5% and we are given the following call and put option prices for
Long position in futures transactions : Discuss the differences between a short (seller) and a long (buyer) position in futures transactions. (Restrict your answer to discussion of a contract like whe
What price is gold trading in the spot market : If there are no storage costs, the expected 1-year forward price of gold is $390 and the risk-free is 4% p.a., at what price is gold trading in the spot market?
What is the net insurance recovery : A manufacturer completed a business income work sheet for the recent policy period based on operating 6 months per year (after plant summer shutdown and usual e
Discuss the importance of having wills and trust to couple : Over the years of working, as Ben's and Bella's personal wealth grew, they became a target of long-lost relatives and occasionally receiving threatening calls f
Find the weighted average cost of capital : Bill Preneur buys a piece of equipment for $380,000. He puts down $37,000 and finances the balance. Bill's opportunity cost is 4.2 percent and the lender's inte
Create a compliance manual for nextbank : NEXTBANK is a newly scheduled 1 bank, incorporated in Toronto, Canada in June 2019. It is a universal bank- Retail& wholesale. You need to Create a complian
What is the estimated cost of common equity : Booher Book Stores has a beta of 0.4. The yield on a 3-month T-bill is 5% and the yield on a 10-year T-bond is 8%. The market risk premium is 4.5%, and the retu

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the portfolio beta

Donald Gilmore has $100,000 invested in a 2-stock portfolio. $75,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta

  Capital separate from earned capital

a. Why is it important to keep paid-in capital separate from earned capital? b. As an investor, is paid-in or earned capital more important? Why?

  Computation of new price of bonds

Computation of new price of bonds and the market interest rate on these bonds has dropped to 6%

  Explain the concept of limited liability

Explain the concept of "limited liability" in the context of a corporation. Is limited liability an advantage or disadvantage of the corporate form of business organization? Why?

  Compute the cost of preferred stock for medco corp

Medco Corporation can sell preferred stock for $106 with an estimated flotation cost of $2. It is anticipated that the preferred stock will pay $6 per share in dividends.

  Publishing on organisational sustainability policy

What a monitoring reports may include while publishing on an organisational sustainability policy?

  Estimates of the net present value of a proposed project are

How accurate do you think a company's estimates of the net present value of a proposed project are? Refer to both the initial investment and to the components of the cash flow: revenues, operating expenses, depreciation, taxes, and the cost of cap..

  What is the weighted average cost of capital

What is the weighted average cost of capital (WACC) for a firm where debt is 40% of the firm, preferred stock is 10% of the firm, common stock is 50% of the firm, after tax cost of debt is 8%, cost of preferred stock is 12%, and cost of common stock ..

  Payoff table shows the profit or loss

A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits fr..

  What is the present value of the video game franchise

Your uncle developed a new video game franchise and left the rights to you. Under current copyright law, your intellectual property is protected for 95 years.

  Compute the anticipated value of the dividends

Hunter Petroleum Company paid a $2 dividend last year. The dividend is expected to increase at a constant rate of 5% over the next 3-years. The required rate of return is 12%

  What role do primary financial markets play in our economy

What role do primary financial markets play in our economy? What role do secondary markets fill? Describe the relationship that exists between financial.

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