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Nitella [24]
3 years ago
10

decides to use the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are

$140,000; and her special needs are $100,000. Ellen has the following assets: $20,000 in bank accounts, $30,000 in retirement accounts, and $40,000 in investment accounts. She does not own any individual life insurance, but she is covered by a $50,000 group life insurance policy through her employer. Judging solely from this information, how much additional life insurance (if any) should Ellen purchase
Business
1 answer:
nadya68 [22]3 years ago
3 0

Answer:

$130,000

Explanation:

For determining the additional life insurance required first we need to follow some steps which are shown below:-

Step 1

Total needs = Cash needs + Income needs + Special needs

= $30,000 + $140,000 + $100,000

= $270,000

Step 2

Total assets held = Bank accounts + Retirement plans + Investment accounts

= $20,000 + $30,000 + $40,000

= $90,000

Step 3

Total amount of life = $270,000 - $90,000

= $180,000

and finally

Additional life insurance required =

The Total amount of life - Life insurance provided by the employer

= $180,000 - $50,000

= $130,000

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For each transaction,
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1) I used an excel spreadsheet

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d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.

Dr Cash 1,000

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3)

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<u>1,000                              </u>

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debit                    credit

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Unearned Landscaping Revenue (236)

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Download pdf
3 0
3 years ago
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Answer:

$74.63 per share

Explanation:

The computation of the value of preferred stock is shown below:

As we know that  

Value of the preferred stock = Annual dividend rate ÷ Returns on the stock

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= 11% × $100

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6 0
3 years ago
A characteristic of centrally planned economies is that:
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Answer:

The correct answer is letter "B": the price is relatively unimportant in allocating resources.

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<em>Allocation price is irrelevant when it comes to command economies since only those vital goods such as staples are paid attention.</em>

4 0
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