Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
John Wilson is a 42-year-old computer programmer, husband, and father of four. He wants to use the capital retention approach to determine how much life insurance he should purchase. Because of his $105,000 salary and their four children, his wife does not work outside the home. The family's current annual living expenses are approximately $75,000, including $8,000 in annual IRA contributions. He prefers to use the capital retention approach (CRA) so that he can be reasonably assured that his family will not exhaust the proceeds of his policy. However, he also wants to consider the possible reduction in expenses and apply a 70% replacement ratio to the calculation.a. Calculate John's insurance need using the capital retention approach, an after-tax discount rate of 5.5%, and assume end-of period payment of benefits.b. Calculate John's insurance need using the human life value approach (HLV), an after-tax discount rate of 5.5%, a remaining working life of 25 years, and assume end-of period payment of benefits. After your presentation, John was bewildered about why the HLV and CRA calculations resulted in significantly different insurance needs. Using the two formulas as a guide, explain to John why this result occurred.
Primetime Company owns 2/3 of the outstanding $1 par common stock of Satellite corporation on January 1, 2006. In order to increase cash to finance an expansion program,
A company plans to increase $4 million through borrowing at an interest rate of 16% and to raise $1 million by issuing common stock. The company's stock has a beta coefficient of 2,
Discuss how can the measures of interest rate risk be used to predict future earnings performance.
Expected return on the market portfolio is 17.7% and risk free rate is 4.1%. Determine the expected return on Edward Jones stock
Explain a transaction or set of transactions affecting a firm you have worked for or that you are aware of that could arguably be presented in more than one way in financial statements.
A corporation's 2000 sales were $8,954,238. Sales were $5 million ten years earlier. To the nearest percentage point, at what rate have sales been growing?
Suppose you have just inherited $10 million. Ratherthan kicking back and avoiding all work, you are contemplating starting a landscaping business with a friend that would require each of you to invest $5,000 for machine.
What recognition criteria for deferred tax liabilities and assets must Wannon Water meet in order to recognise the net deferred tax liability of $36.879 million in its accounts?
Dynamic Futon forecasts the following purchases from suppliers:
Computation of yield on bond with given data and what is the yield on a 7-year bond for Drongo Corporation
I am planning going to graduate school in three years. Current estimated cost is $32,000 per year. Those costs are expected to grow every year at the rate of inflation.
S. Strigel Chemical Corporation issued $5,000,000 face value, 10%, 10-year bonds at $5,679,533. This price resulted in an 8 percent effective-interest rate on the bonds.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd