Kim, Khloe, and Kendall started their own fashion company that is worth $5 million. Kim has 60% ownership in the company while Khloe has 10%, and Kendall has 30%. They purchased cross-purchase disability buyout insurance in case one of the owners becomes disabled and they would use the insurance proceeds to buyout the disabled owner's interests. Based on their scenario, which of the following statements is correct? In the event of Khloe's disability, the insurer would pay $3,000,000 to Kim and $1,500,000 to Kendall. In the event of Khloe's disability, the insurer would pay $250,000 to Kim and $250,000 to Kendall. In the event of Khloe's disability, the insurer would pay $300,000 to Kim and $150,000 to Kendall. In the event of Khloe's disability, the insurer would pay $333,333 to Kim and $166,667 to Kendall.
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Kim, Khloe, and Kendall started their own fashion company that is worth $5 million. Kim has 60% ownership in the company while Khloe has 10%, and Kendall has 30%. They purchased cross-purchase disability buyout insurance in case one of the owners becomes disabled and they would use the insurance proceeds to buyout the disabled owner's interests. Based on their scenario, which of the following statements is correct?
In the event of Khloe's disability, the insurer would pay $3,000,000 to Kim and $1,500,000 to Kendall.
In the event of Khloe's disability, the insurer would pay $250,000 to Kim and $250,000 to Kendall.
In the event of Khloe's disability, the insurer would pay $300,000 to Kim and $150,000 to Kendall.
In the event of Khloe's disability, the insurer would pay $333,333 to Kim and $166,667 to Kendall.
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