Author Question: Traditional financial statements include only interest costs associated with any debt and NOT the ... (Read 88 times)

P68T · **on:** Jul 11, 2018

Traditional financial statements include only interest costs associated with any debt and NOT the return required or expected by equity holders, which is included in the EVA approach.

Indicate whether the statement is true or false

Question 2

Joan insures her house (with a market value of 50,000, not including 10,000 for the foundation and lot) with a 30,000 insurance policy calling for 80 co-insurance. A fire causes 10,000 worth of structural damage valued at replacement cost.

Considering only the information provided, what amount is she likely to collect from the insurance company?
A)

10,000
B)

7,500
C)

6,000
D)

5,000