Answer: $1,300
Explanation:
A comprehensive standard general liability policy is used when there are operations being conducted by a contractor or tenant. The basic policy covers property damage to other parties as well as bodily harm. Seeing as there are no additional coverages, the basic plan is in effect.
The only thing that can be covered here by the insurance company therefore is the $1,800 damage to the pedestrian because the rest relate to the contractor so are not covered,
As there is a $500 deductible, the amount the insurance company is liable for is:
= 1,800 - 500
= $1,300
Answer:
The value of the call option today is $7.73
Explanation:
The value or price of the call option under the two state model is calculated based on the assumption that there is no opportunity for arbitrage profit. The value of call option will be based on the return in case the call option is exercised and the probability of earning that return.
The strike price is $105
The return if price goes to $122 and option is exercised is 122 - 105 = $17
The return if the price goes down to $88 will be 0 as the call option will not be exercised.
Thus, the expected return is = 0.5 * 17 + 0.5 * 0 = $8.5
This return will be earned after 1 year. To calculate the value of the call option today, we need to discount this return to present value using the risk free rate.
V0 or value today = 8.5 / (1+0.1) = $7.727 rounded off to $7.73
Answer: halo error
Explanation: In simple words, halo error refers to the mistake or bias that occur in the performance evaluation when someone evaluates other on the basis of their personal perception and not on the basis of the performance done by that individual.
In the given case, Letitia is evaluated above than others although she sells lesser volume than others. This happens due to the perception of her supervisor that customer service is more important.
Answer:
As the U.S. dollar appreciates against foreign currencies, the U.S. AGGREGATE DEMAND curve shifts LEFTWARD resulting in a(n) DECREASE in the U.S. price level and a(n) DECREASE in Real GDP in the United States.
Explanation:
If the US dollar appreciates, it will reduce American exports and increase imports. Since exports fall, the aggregate demand curve will shift to the left. A leftward shift in the AD curve will result in lower total output and a lower price level. Since the price level decreases, exports decrease and imports increase, the real GDP will decrease.
Explanation:
The journal entry is as follows
On February 1, 2020
Land Dr $36,400
To Common Stock $14,000
To Paid- in capital in excess of par value - common stock $22,400
(Being the common stock is issued for land)
The computation is shown below:
For common stock
= 2,800 shares × $5 per share
= $14,000
And, the remaining balance is credited to the paid in capital in excess of par value i.e $22,400
