Negatively impacted by the coinsurance clause

Assignment Help Financial Management

Reference no: EM131346341

Ann and Andy live in a 2000 square foot home with a market value of $120,000. The construction costs for similar homes in their area are $80 per square foot. What is the minimum amount of homeowners insurance they should buy so as not to be negatively impacted by the coinsurance clause?

Reference no: EM131346341

Questions Cloud

Initial cost the company would be willing to pay for project : Och, Inc., is considering a project that will result in initial aftertax cash savings of $1.77 million at the end of the first year, and these savings will grow at a rate of 1 percent per year indefinitely. What is the maximum initial cost the compan..

Calculate the payback period : McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $860 per set and have a variable cost of $460 per set. The company has spent $156,000 for a marketing study that determined the company will sell 60,000 sets per year ..

Aftertax cost of debt pretax cost of debt : Shanken Corp. issued a 10-year, 6 percent semiannual bond 2 years ago. The bond currently sells for 95 percent of its face value. The company's tax rate is 35 percent. What is the pretax cost of debt? Which is more relevant, the pretax or the afterta..

What is the minimum amount of homeowners insurance : Ann and Andy live in a 2000 square foot home with a market value of $120,000. The construction costs for similar homes in their area are $80 per square foot. What is the minimum amount of homeowners insurance they should buy so as not to be negativel..

Negatively impacted by the coinsurance clause : Ann and Andy live in a 2000 square foot home with a market value of $120,000. The construction costs for similar homes in their area are $80 per square foot. What is the minimum amount of homeowners insurance they should buy so as not to be negativel..

How do you find the present value of future cash flows : Creskill Corp has a debt-total asset ratio of 42 percent and return on total assets of 9 percent. Compute the return on equity. How do you find the present value of future cash flows? What resources should the new head of Investor Relations ask for? ..

The bond is selling at yield to maturity : Find the duration of a bond with settlement date June 1, 2016, and maturity date November 25, 2025. The coupon rate of the bond is 8%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 9%.

Long-term government and corporate bond fund : A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. What is the expected retur..

Investors expect the market rate of return year : Investors expect the market rate of return this year to be 10%. The expected rate of return on a stock with a beta of 1.2 is currently 12%. If the market return this year turns out to be 8%, how would you revise your expectation of the rate of return..

User Account

All Pages