You and your spouse are in good health and have reasonably secure careers. Each of you makes about $51,000 annually. You own a home with a mortgage of $102,000, and you owe $26,000 on car loans, $9,000 in personal debts, and $9,000 on credit card loans. You have no other debts. You have no plans to increase the size of your family in the near future. Assume funeral expenses of $5,000. Estimate your total insurance needs using the DINK method.
Q: A loan of $1420 taken out on June 7 requires three payments. The first payment is due on July 7. The…
A: Periodic payment refers to an amount that is paid every period for the repayment of a loan amount…
Q: A20-29 EPS, Cascade (LO 20-2, 20-3, 20-4) Ashante Sports Collections Ltd. (ASCL) ended 20X5 with…
A: EPS stands for Earnings Per Share which states that how much amount the business makes for every…
Q: you are paying of a purchase made with a down payment of 50000 usd. you will pay the rest of 245000…
A: To find the interest rate that will help pay off your total purchase, we need to consider the…
Q: If D = 8,400 per month, S = $43 per order, and H = $1.50 per unit per month, a) What is the economic…
A: Economic Order Quantity (EOQ) means the order quantity at which the total variable cost (which…
Q: You are the financial manager of a construction company that wants to reduce the volatility of its…
A: The solution requires a deep understanding of options trading. Purchasing a call option gives you…
Q: A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in account…
A: 1. **Determine the cash flows**: The bond pays semiannual coupons at a 7.00% annual rate, which…
Q: Megan Ross holds the following portfolio: Stock Investment Beta A $150,000 1.40…
A: The portfolio's beta is approximately `1.17`.Explanation:Certainly. The calculation of the…
Q: You deposit $10000 into a CD with 5% interest compounded monthly. The CD will last 10 years. When…
A: The objective of the question is to find the amount that will be accumulated in a Certificate of…
Q: Complete the repayment schedule below by filling in the interest charges for October, November, and…
A: A loan repayment schedule is a planned schedule for paying back the loan. It shows a series of…
Q: The following three mutually exclusive alternative proposals are being considered for flood proofing…
A: Equivalent Annual Cost (EAC) is the yearly cost of owning, operating, and maintaining an asset over…
Q: Quinoa Farms just paid a dividend of $3.85 on its stock. The growth rate in dividends is expected to…
A: Dividend paid (D0$3.85Growth rate4%Required return for the first 3 years12%Required return for the…
Q: Draiman Corporation has bonds on the market with 23.5 years to maturity, a YTM of 7 percent, a par…
A: Coupon rate of the bond is 7.45%Explanation:Step 1:Bonds are good sources of investment and finance…
Q: Suppose you want to buy a $453,806 home. You can put $90,000 down and can finance at 4.1% APR…
A:
Q: O Nighthawk Steel, a manufacturer of specialized tools, has $5,050,000 in assets. Temporary current…
A: Temporary current assets=$210000Permanent current assets=$155000Short term interest…
Q: One retailer charges $1038 for a certain computer. A firm of tax accountants buys 7 of these…
A: Cost per computer: $1038Number of computers purchased: 7Down payment: $1300Interest rate: 12%Number…
Q: Six years ago, I bought 200 shares of Disney at $26 per share. The stock had a 2:1 split followed by…
A: Number of years (n) = 6Initial number of shares = 200Initial stock price = $26 per shareFinal stock…
Q: Suppose that during the coming year, the risk free rate, rRF, is expected to remain the same, while…
A: The objective of the question is to understand the impact of a decrease in the market risk premium…
Q: Suppose a stock had an initial price of $86 per share, paid a dividend of $1.80 per share during the…
A: Percentage Total Return is -11.86%Dividend Yield is 2.09%Capital Gains Yield is…
Q: A stock currently pays a dividend of $2.50 for the year. Expected dividend growth is 15% for the…
A: $212.37Explanation:Calculate the dividends for the high growth period (first three years):Year 1…
Q: Eagle Corporation issued $9,990,000, 5 percent bonds dated April 1, year 1. The market interest rate…
A: Bonds:A bond is a fixed-income instrument because a bond is issued with a fixed rate of interest.…
Q: you are paying of a purchase made with a down payment of 50000 usd. you will pay the rest of 245000…
A: the interest rate is 0%.Explanation:To solve this problem, we need to find the interest rate that…
Q: Krell Industries has a share price of $22.12 today. If Krell is expected to pay a dividend of $0.94…
A: Share price today (P0) = $22.12Next year dividend (D1) = $0.94Next year share price (P1) =…
Q: 14 years ago, I purchased 114 shares of a stock worth $15.25 per share. There was a 2:1 split, a 3:1…
A: Total rate of return is the sum of capital gain yield and dividend yieldTotal rate of…
Q: Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a mineral…
A: Net present value refers to the method for evaluating the worthiness of the project under capital…
Q: 7.1. Given the cash flows described in table below. Determine the ROR. Year 0 1-2 3-5 Cash flow…
A: ROR or Rate of return can be calculated in excel by using the excel formula ''=IRR''Note : IRR…
Q: coupons. If you require a return of 3.50% on this instrument, how much would you offer to pay for it…
A: The price at which a bond is currently traded on the market is its market value. It represents the…
Q: Problem 13-1 Calculating Cost of Equity The Swanson Corporation's common stock has a beta of 1.5. If…
A: The objective of this question is to calculate the cost of equity capital for Swanson Corporation…
Q: PROBLE The Cape Corporation has ending inventory of $483,167, and cost of goods sold for the year…
A: Inventory turnover is 8.87, which means The Cape Corporation sells its inventory and replaces it…
Q: Which of the following statements is CORRECT? a. Portfolio diversification reduces the variability…
A: The objective of the question is to identify the correct statement among the given options related…
Q: Even though most corporate bonds in the United States make coupon payments semiannually, bonds…
A: A bond is a type of debt instrument issued by governments, corporations, municipalities and other…
Q: f the corporate tax rate is 23 percent, what is the aftertax cost of the company's debt?
A: The cost of debt denotes the actual rate at which a company compensates for its borrowed capital,…
Q: vvk.2
A: The objective of the question is to determine whether Mahmut Tutam should make the investment…
Q: Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost…
A: Operating cash flows will be net cash flows that can be realized by the business after determining…
Q: If the continuous annual risk-free rate is 5% and Apple is going to pay a $3 dividend once per year…
A: The forward price is the agreed-upon price at which parties commit to buy or sell an asset in the…
Q: Given the following information for 2023, what should be the additional funds needed (AFN) in 2024…
A: If sales reach $2,000,000, we may use the information for 2023 to calculate the extra funds needed…
Q: What is the bond's current market price? Round your answer to the nearest cent. $
A: The bond price is equivalent to the sum of money required to purchase one. The amount that the bond…
Q: A 4.00 percent coupon municipal bond has 12 years left to maturity and has a price quote of 95.55.…
A: A bond refers to an instrument that provides the issuing company with access to debt capital from…
Q: Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire…
A: Future value (FV) is a financial concept that represents the value of an investment or a sum of…
Q: McDonald's major distribution partner, The Martin-Brower Company, needs at least $1 million to build…
A: The objective of the question is to determine if The Martin-Brower Company will have enough money to…
Q: You find a certain stock that had returns of 16 percent, −23 percent, 24 percent, and 9 percent for…
A:
Q: he financial statements of Eagle Sport Supply are shown in the table below. For simplicity. "Costs"…
A: The growth rate which can obtained without any external funding required is the sustainable growth…
Q: Laurel Enterprises expects earnings next year of $3.66 per share and has a 35% retention rate, which…
A: Earning per share= $3.66Retention ratio= 35%Cost of capital= 9.1%Return on new investment=9.1%
Q: In 2022, Deborah had a balance of $109,000 in her TFSA. That year, she withdrew $40,000 to fund her…
A: The objective of the question is to calculate the maximum amount that Deborah can contribute to her…
Q: The Saskatchewan Roughnders started a rainy day savings fund 4.5 years ago to help pay for stadium…
A: Fund started = 4.5 years agoPeriod payment = $19,000Interest rate = 4.4% compounded semi-annuallyTo…
Q: 6. You are obligated to pay $10,000 in a year. There are two bonds with the following information…
A: The objective of the question is to construct a portfolio of bonds A and B using the immunization…
Q: How much will you have after 25 years if you put $1500per month in the account that instead earns…
A: Future value is similar to projecting how much money you will have in the future from current…
Q: Jaclyn and Henry secured a $ 225, 000 mortgage at 5% annual interest for 20 years. This results in a…
A: The amortization refers to the systematic and regular repayment of loan principal and interest…
Q: Suppose that the current rates on 60- and 120 - day GICs are 5.50% and 5.75%, respectively. An…
A: Expectations theory refers to the theory in finance that states that the yields on future securities…
Q: An insurance company wishes to offer customers a monthly installment alternative to the annual…
A: The given annual monthly compounding rate needs to be converted to an effective rate. Please refer…
Q: Explain the best a possible quantitative research design and sampling technique that can be used for…
A: The objective of the question is to identify the most suitable quantitative research design and…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $49,000 annually. You own a home with a $95,000 mortgage, and you owe $15,600 on car loans, $6,800 in personal debt, and $3,950 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $8,000. Estimate your total insurance needs using the DINK method. Total insurance needYou and your spouse are in good health and have reasonably secure careers. Each of you makes about $40,000 annually. You own a home with an $80,000 mortgage, and you owe $15,000 on car loans, $5,000 on personal debts, and $4,000 on credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. Estimate your insurance needs using the DINK method. Show work!You and your spouse are in good health and have reasonably secure careers. You make about $75,500 annually and have opted for life insurance coverage of three times your salary through your employer. With your spouse's income, you are able to absorb ongoing living costs of $55,500 a year. You own a home with a $290,500 mortgage. Other debts include a $15,250 car loan, $7,100 student loan, and $4,050 charged to credit cards. In the event of your death, you wish to leave your family debt- free. One of your most important financial goals involves building an education fund of $101,000 to cover the costs of a four-year university program for each of your two children ages two and four. To date, you have accumulated $25,500 toward this goal in an RESP. Should you die, your beneficiaries would receive a $2,500 death benefit lump-sum payment from the Canada Pension Plan. You also have $35,500 in your company pension plan. Average funeral expenses are $13,600. Your other financial assets are…
- You are a dual-income, no-kids family. You and your spouse have the following debts: Mortgage = $261,000; Auto loan = $10,000; Credit card balance = $2,150; and other debts = $6,200. Further, you estimate that your funeral will cost $9,000. Your spouse expects to continue to work after your death. Using the DINK method, what should be your need for life insurance? Total insurance need $ 288,3504. You and your spouse are in good health and have reasonably secure careers. You make about $75,000 annually and have opted for life insurance coverage of three times your salary through your employer. With your spouse's income, you are able to absorb ongoing living costs of $55,000 a year. You own a home with a $290,000 mortgage. Other debts include a $15,000 car loan, $7,000 student loan, and $4,000 charged to credit cards. In the event of your death, you wish to leave your family debt-free. One of your most important financial goals involves building an education fund of $100,000 to cover the costs of a four-year university program for each of your two children ages two and four. To date, you have accumulated $25,000 toward this goal in an RESP. Should you die, your beneficiaries would receive a $2,500 death benefit lump-sum payment from the Canada Pension Plan. You also have $35,000 in your company pension plan. Average funeral expenses are $13,800. Your other financial assets are…Sharon and Brian are in good health and have reasonably secure careers. Each earns $45,000 annually. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. If one should die, they think that funeral expenses would be $12,000. What is their total insurance need using the DINK method?
- Christian and Monica are married and are both in good health with reasonably secure careers. Christian and Monica have annual incomes of $60,000 each. The family debts are a home mortgage of $120,000, car loans of $10,000, personal debts of $14,000, and credit card loans of $7,500. The estimated funeral cost is $6,000. Under the DINK Method, what is the amount of total insurance that Christian would need?Ana Maria's family would need $33,500 for annual living expenses if she should pass away. Her husband earns $15,100 per year and the family has additional yearly income of $12,000 from investments. If the prevailing interest rate is 13.3%, how much life insurance is needed to cover the family's income shortfall? (Round your answer to the nearest $1,000.) O $2,000 O $48,000 O $138,000 O $192,000Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Ryan inherited an annuity worth $3,280.16 from his uncle. The annuity will pay him five equal payments of $800 at the end of each year. The annuity fund is offering a return of . Ryan’s friend, Sebastian, wants to go to business school. While his father will share some of the expenses, Sebastian still needs to put in the rest on his own. But Sebastian has no money saved for it yet. According to his calculations, it will cost him $30,044 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $4,200 at the end of every year in a mutual fund, from which he expects to earn a fixed 7% rate of return. It will take approximately for Sebastian to save enough money to go to business school.
- You have just inherited $30,000 tax free from your grandfather's estate. You currently have: no savings or retirement; two small credit card balances of $1,200 and $1,650 at 14.99%; an auto loan of $15,350 at 3.69%; and a mortgage with an unpaid balance of $147,500 at 4.25%. Research Dave Ramsey's 7 Baby Steps. If you follow Dave's plan, what should you do with your money?Hi, my name is Titus. I am having trouble answering this question. Could you help me out? Life Insurance Needs for a Young Married Couple. Amy and Mack Holly from Rapid City, South Dakota, have been married for three years. They recently bought a home costing $212,000 using a $190,000 mortgage. They have no other debts. Mack earns $62,000 per year, and Amy earns $71,000. Each has a retirement plan valued at approximately $20,000. They recently received an offer in the mail from their mortgage lender for a mortgage life insurance policy of $190,000. Their only life insurance currently is a $20,000 cash-value survivorship joint life policy. They each would like to provide the other with support for at least five years if one of them should die. What amount of coverage should they get? ExplainAsha feels she needs $45,000 per year in retirement. If she receives $30,000 a year from Social Security , at what interest rate must Asha invest her $25,000 of savings for her total income to be at least $45,000 per year