The percentage of persons age 65 or older will reach 20 percent in the United States in 2018

An insured suffers a partial fire loss to his residence. Under an HO-3 policy what insuring agreement is available to pay for temporary, alternate living quarters?

a. Coverage A b. Coverage C c. Coverage D d. Coverage B

Ferris Manufacturing is all equity financed. Current financial data for Ferris is provided in the table below for three states of nature, which correspond with three levels of sales

The CFO of Ferris, Cameron Fry, is considering a change in capital structure. In particular, he is thinking about borrowing $5,000. He will borrow the money by issuing perpetual bonds with a face value of $5,000 and a coupon rate of 5%. The borrowed money will be used to repurchase shares at $28.57 per share. Repurchased shares will be cancelled. Taxes are 0%. What are Earnings per Share (EPS) in each state of nature if Ferris borrows the money? Ferris Manufacturing Bad Normal Good EBIT $500 $1,000 $1,500 Interest 0 0 0 Pre-Tax Income 500 1,000 1,500 Taxes (0%) 0 0 0 Net Income 500 1,000 1,500 # Shares 500 500 500 EPS $1.00 $2.00 $3.00 A) Bad: $1.00; Normal: $2.00; Good: $3.00 B) Bad: $0.77; Normal: $2.31; Good: $3.85 C) Bad: $0.50; Normal: $1.50; Good: $2.50 D) Bad: $1.54; Normal: $3.08; Good: $4.62 E) Bad: $1.25; Normal: $2.25; Good: $4.15