Jake’s Garage owns a building with the replacement cost value of $400,000 at the time of a covered loss. If Jake’s Garage has the $300,000 limit of insurance on its building with 80% Coinsurance, RC, and $1,000 deductible, what is the amount Jake’s Garage paid by its insurer.

1. A firm’s sales decline while it is locked into a number of fixed cost leases for equipment. What is this an example of?

a. purchasing power risk

b. business risk

c. price risk

d. financial risk

Which of the following is incorrect?

A. Value with risk = Value without risk – Cost of risk

B. Value without risk – Value with risk = Cost of risk

C. Less variability = More risk

D. Greater variability = Greater risk

Is the accumulated cost of construction work in progress recorded as an asset anywhere within the financial statements or notes? Which fund, or funds, account for cash received, or receivables created, from sales of general capital assets? Are the proceeds of sales of general capital assets reported as an other financing source or as revenue.

1. If you are a seller, (any mode of transport) and wanted to minimize your cost and risk of transport as much as possible, which incoterm would be most appropriate as the term of sale?
2. If you are a seller and wanted to minimize your payment risk as much as possible, which method of payment would be most appropriate?
3. As a cargo owner, you have several containers of product on a vessel on its way to China. During the voyage, the ship encounters severe storms, and the captain of the ship is forced to abandon 100 containers overboard in order to keep the vessel afloat. Fortunately, none of your containers were thrown overboard. As a result, do you have any liability or financial loss due to this accident?   Why, or why not?

1,

a)Carolyn owns a home with a replacement cost of $400,000 that is insured under a Homeowners 3 policy for $260,000. The roof was badly damaged in a severe windstorm, and it will cost $20,000 to repair the roof. The actual cash value of the loss is $15,000. Ignoring any deductible, how much will Carolyn collect from the insurer?

b) Carolyn owns a home with a replacement cost of $400,000 that is insured under a Homeowners 3 policy for $340,000. The roof was badly damaged in a severe windstorm, and it will cost $20,000 to repair the roof. The actual cash value of the loss is $15,000. Ignoring any deductible, how much will Carolyn collect from the insurer?

Carolyn owns a home with a replacement cost of $400,000 that is insured under a Homeowners 3 policy for $340,000. The roof was badly damaged in a severe windstorm, and it will cost $20,000 to repair the roof. The actual cash value of the loss is $15,000. Ignoring any deductible, how much will Carolyn collect from the insurer?

John owns a home with a replacement cost of $400,000 that is insured under a Homeowners 3 policy for $280,000. The roof was badly damaged in a severe windstorm, and it will cost $20,000 to repair the roof. The ACV (actual cash value) of the loss is $10,000. Ignoring any deductible, how much will John collect from the insurer? ( Use the formula)

Compute the cost of insurance for a $1,000 life insurance policy in a year where the policy’s terminal reserve is $400 and the tabular probability of the insured’s death is 0.004.