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!
Katie Holt is a 72-year-old widow who has recently been diagnosed with Alzheimer's disease. She has limited financial assets of her own and has been living with her daughter Laurie for 2 years. Her only income is $700 a month in Social Security survivor's benefits. Laurie wants to make sure her mother will be taken care of if Laurie should die. Laurie, 40, is single and earns $60,000 a year as a human resources manager for a small manufacturing firm. She owns a condo with a current market value of $110,000 and has a $78,000 mortgage. Other debts include a $6,000 auto loan and $400 in various credit card balances. Her 401(k) plan has a current balance of $50,000, and she keeps $15,000 in a money market account for emergencies. After talking with her mother's doctor, Laurie believes that her mother will be able to continue living independently for another 3 years. She estimates that her mother would need about $1,200 a month to cover her living expenses and medical costs during this time. After that, Laurie's mother will probably need nursing home care. Laurie calls several local nursing homes and finds that it will cost about $5,500 a month when her mother enters a nursing home. Her mother's doctor says it is difficult to estimate her mother's life expectancy but indicates that with proper care some Alzheimer's patients can live 10 years after diagnosis. Laurie also estimates that her personal final expenses would be around $14,000, and she'd like to provide a $35,000 contingency fund that would be used to pay a trusted friend to supervise her mother's care if Laurie were no longer alive. Calculate Laurie's total life insurance requirements. In your analysis, assume an incidental special need amount of $14,000.
Pistol Pete's Platinum Palace has outstanding 5 year corporate bonds with a current yield of 6.50%. 5-Year T-Bonds have a current yield of 4.40%. The default risk premium for Pete's bonds is DRP = 0.40%. The liquidity premium on Pete's bonds is 1.70%..
Lakonishok Equipment has an investment opportunity in Europe. The project costs €12 million and is expected to produce cash flows of €1.7 million in Year 1, €2.1 million in Year 2, and €3.2 million in Year 3. The appropriate discount rate for the pro..
An annuity with a cash value of 13500 earns 6% compounded semi-annually. End-of-period semi-annual payments are deffered for five years, and then continue for ten years. How much is the amount of each payment?
Capital Co. has a capital structure, based on current market values, that consists of 50 percent debt, 10 percent preferred stock, and 40 percent common stock. If the returns required by investors are 8 percent, 10 percent, and 15 percent for the deb..
Write a 2-page paper in which you assess the debt market for interest rate and credit risk transfer vehicles. You are required to use at least two journal articles and follow proper APA format.
Bond J is a 3% coupon bond. Bond K is 9% coupon bond. Both have 15 years to maturity, make semi-annual payments, and have a YTM of 6%. If the interest rate suddenly rises by 2%, what is the percentage price change of these bonds? What is rate suddenl..
Suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 6% when the market interest rate is 6%.- What rate of return did you earn on the bond during the year?
One week after the original offer was made by Juliana, Linda sends a signed acceptance of Juliana's $15,000 offer. Has the contract been formed? Explain.
Partial information follows about net sales, net purchases, cost of goods sold, gross profit, total expenses and net income for Jensen Company. Compute the missing values. Total Expenses Rent $ 108,100 Salaries 437,200 Utilities 37,000 Freight-out ? ..
The Wildwood Fund sells Class A shares with a front-end load of 5% and Class B Shares with 12b-1 fees of 6.0% annually but no load. If you plan to sell the fund after 7 years, are Class A or Class B shares the better choice? Assume a 15% annual retur..
Skye Flyer, Inc., has weekly credit sales of $18,600, and the average collection period is 28 days. What is the average accounts receivable figure?
Sweet Tooth Bakery bakes and sells pies. Sweet Tooth has annual fixed costs of $880,000 and a variable cost per pie of $7.50. Each pie sells for $15.50 each. The firm expects to sell 500,000 pies annually. What is the break-even point in sales dollar..
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