Questions

Solve for Zac and Mary’s life insurance needs using the following approaches:
· Human-Life Value Approach
· Needs Approach
· Capitalized-Earnings Approach

Problem

Zac and Mary Johnson are 36 and 34 respectively. Zac has recently been offered a new job as an IT engineer with a newly created software company that helps churches fully integrate their giving, attendance, and member data software where he can earn \$102,000 per year. Mary currently stays home and homeschools their two children (Brayden (10) and Cora (7)) although she holds a CPA license in the state of Indiana. Zac and Mary also have two Mastiffs (Fun and Games). Zac and Mary have been married for 14 years and currently live in a rural area outside Indianapolis IN.
With great excitement, Zac and Mary have just realized that they will be expected their third child. Knowing his type A personality, Zac begins to feel anxious that he has not done an adequate job of protecting his family should something happen to him, especially with the anticipation of a third child.
Zac approaches you in your local men’s bible study and asks to meet with you regarding a review of his current insurance. He seems rather bothered by where he stands, specifically not knowing how much life insurance he really should have.
In the course of your follow-up meeting, he gives you the following information:
v Current salary: \$102,000
v Annual salary increase: 3.0%
v Retirement Age: 67
v Expected inflation rate: 3%
v Final expenses: \$30,000
v Income Tax bracket: 25%
v Total monthly social security benefit per child until the child reaches 18: \$3200
v College education costs \$25,000 per year per child in today’s dollars starting at age 18 for four years.
v Education inflation rate: 5%
v Monthly income needs for spouse until last child is age 22: \$5500
v Personal Consumption: 20% of income
v Investment returns expected to be 6%
v Mortgage and debt repayment (as it stands today) is: \$285,000

QUIZ

When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital (WACC) and when using the dividend discount model, dividends are discounted at….

Dixie’s Daughter’s Book Quiz Assignment

Dixie’s Daughter’s Book Quiz Assignment Directions: After reading Dixie’s Daughters:  The United Daughters of the Confederacy and the Preservation of Confederate Culture:   please answer the following questions about the book.  ….

Its 4 page essay

PLEASE READ INSTRUCTIONS CAREFULLY Purpose: To write a response to Gloria Anzaldua’s “How to Tame a Wild Tongue,” a chapter in her book Borderlands/La Frontera. In your response, you should….