Comprehensive and collision insurance

Assignment Help Financial Management
Reference no: EM131048499

Alan owns a 2011 BMW, which he paid $44,000 for. He has comprehensive and collision insurance on the car with a $500 deductible. This year, Alan has had a series of unfortunate incidents. Someone threw a can of pears at his car in April, which hit some chrome and caused $470 worth of damage. He hit a deer in June, which only knocked out his headlight, but that still cost $819 to repair. Then some darn teenager spray painted a "piece" sign on the trunk, and while Alan is a pacifist, he was angry that the miscreant had misspelled "peace" and had the car repainted, which cost $1,186. He turned all three claims to his insurance company. How much would he receive from insurance?

Reference no: EM131048499

Questions Cloud

What is your estimate of the current share price : Industrial Lights is expected to have $20 millions in free cash flows next year. The growth rate of free cash flows is expected to be 14% in the following year, 12% in the year after that, and continue declining by 2% until it reaches 6%, where it is..
Considering an asset allocation-what is beta of portfolio : You are considering an asset allocation that will consist of 10 percent in the money market account, 40 percent in the Small-Stock Fund, which has a beta of 1.40 and 60 percent in the S&P/TSX index fund, which has a beta of 1.0. What is the beta of y..
What is the equivalent uniform annual cost of the implement : Lucas Construction just purchased a new track hoe attachment costing $12,500. The CFO, Mr. Cameron Lucas, expects the implement will be used for five years when it is estimated to have a salvage value of $4,000. Maintenance costs are estimated to be ..
Collision and other-than-collision insurance with deductible : Sam has auto liability insurance with limits of 25/50/25. He also has collision and other-than-collision insurance with a deductible of $500 on his 2010 minivan, valued at $22,500. Dick had medical bills of $12,345. Harry had medical bills of $4,970...
Comprehensive and collision insurance : Alan owns a 2011 BMW, which he paid $44,000 for. He has comprehensive and collision insurance on the car with a $500 deductible. This year, Alan has had a series of unfortunate incidents. Then some darn teenager spray painted a "piece" sign on the tr..
Differentiation strategy or focus-cost leadership strategy : Give one example of a service firm that either uses a focus/differentiation strategy or a focus/cost leadership strategy. Briefly describe the market segment served by the firm. Rate the complexity and rate the divergence of the firm’s service operat..
Face value bonds outstanding-what is yield to maturity : Best Western has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in three years, and have a 5 percent coupon. The current price is quoted at 101. What is the yield to maturity
Total stockholders equity : Sitwell Enterprises began the year with $1,000,000 in total assets and ended the year with $1,500,000 in total assets. It had no debt at the beginning of the year, but it had $200,000 at the end of the year. What was Sitwells net worth (that is, tota..
What amount would a person with actual cash value : What amount would a person with actual cash value (ACV) coverage receive for three-year-old furniture destroyed by a fire? The furniture would cost $2,500 to replace today and had an estimated life of five years.

Reviews

Write a Review

Financial Management Questions & Answers

  State the hypotheses for this problem and test it

State the hypotheses for this problem and test it. What is the probability of a type 1 error?

  What is the most likely price for the individual shares

Consider an investment that will pay in total dividends $100,000 in year one, $300,000 in year two and $600,000 in year three. After the final dividend is made the shares become worthless. Assume there are 25,000 shares being issued and the benchmark..

  The type of financing activity-what the funds are being used

Discuss in one or two paragraphs the types of financing activities your research company is involved in. The discussion should include any or all of the following: The type of financing activity. What the funds are being used for?

  Find the monthly mortgage including tax and insurance

Find the monthly mortgage including tax and insurance

  The case where all parties to a transaction

The case where all parties to a transaction or contract do not have the same information is a world of ___ information. The FED can increase the money supply by _____.

  Planning to make monthly deposits-retirement account

You are planning to make monthly deposits of $450 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 25 years?

  What price should you be willing to pay for the bond

Suppose a bond which makes annual coupon payments has a coupon rate of 10 percent and 5 years to maturity. You wish to purchase one of these bonds and you require an 11 percent return on your investment. What price should you be willing to pay for th..

  Dollar-denominated american put option

Consider a 9-month dollar-denominated American put option on British pounds. You are given that: The current exchange rate is 1.43 US dollars per pound. The strike price of the put is 1.56 US dollars per pound. The British pound continuously compound..

  Effective annual interest rate on this leading arrangement

You've worked out a line of credit arrangement that allows you to borrow up to $40 million at any time. The interest rate is .56 percent per month. In addition, 4 percent of the amount that you borrow must be deposited in a non-interest-bearing accou..

  Advantages and disadvantages of investing in stock market

It is commonly assumed that the stock market yields a 10% rate or return on average on investments made in the market long term. Essay looking at the advantages and disadvantages of investing in the stock market long term.

  About the merger valuation

Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Vandell's debt interest rate is 7.8%.  What is the per share value of Vandell to Hast..

  Calculate the residual income for the northern division

Kim Corporation has two major divisions: Northern Products and Southern Products. It provides the following information for the year 2014 Northern Products Division Southern Products Division Sales revenue $140,000 $1,040,000 Operating income $46,400..

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