A homeowner claims to have $100,000 in equity in her home. This statement uses the term equity from a financial point of viewand means the home: [1.4.3 The Language of Economics versus the Language of Business]Ais worth $100,000 less than the homeowner owes on any mortgages.Bis worth $100,000 more than the homeowner owes on any mortgages.Cis worth $100,000 more than market price.D) is worth $100,000.

Equity in a home refers to the difference between the market value of the home and the amount owed…

Answered: A homeowner claims to have $100,000 in…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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hey I need help figuring out the numbers for these accounting homework assignments. Clint M. Invests $30,000. Into Merle company. The effect to Liabilities would be: ( Type your numeric number) Clint M. Invests $30,000 into Merle Company. The effect to Equity would be: (Type your numeric number) Merle company purchases s piece of equipment for $5,000 on account. The effect to Assets would be: (Type your numeric answer) Merle company purchases a piece of equipment for $5,000. The effect to Liabilities would be: (Type your numeric answer) Merle Company purchases a piece of equipment for $5,000 on account. The effect to Equit would be: (type your numeric answer)
5. Determine the net worth and debt equity ratio for each of the following situations and describe their financial situation. a. Betty's assests are worth $240 000.0. She has a mortgage worth $120 000.00 and a car loan for $17 000. b. Jim has a house worth $350 000, investments worth $65 000 and a car worth $21 000. He has a mortgage for $202 000, a car loan for $17000, a line credit with $9000 on it and two credit cards with a total of $7500 on them. c. Jay and Jane pay rent of $1500 per month, a total of $8000 in RRSP's and two cars, one worth $16 000 and one worth $10 000. They have car loans worth $4000 and $6000 as well as student loans totally $12 000.
I need help for D, E, and G please You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to apply for a mortgage loan on a house they want to buy. The house has a market value of $170,000. Your bank requires 1/5 of the market value as a down payment. (a) What is the amount (in $) of the down payment? $ (b) What is the amount (in $) of the mortgage for which the Bradys are applying? $ (c) Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments for principal and interest on the loan will be $5.37 for every $1,000 financed. What is the amount (in $) of the principal and interest portion of the Bradys' monthly payment? $ (d) What is the total amount (in $) of interest that will be paid over the life of the loan? $ (e) Your bank also requires that the monthly mortgage payments include property tax and homeowners insurance payments. If the property tax is $1,710 per…
Given the attached information, which of the answers below would be correct?: a. A would lend, consume 0 today and $105,000 next year b. G would borrow, consume $112,037 today and 0 next year c. A would lend, consume 0 today and $111,000 next year d. G would borrow, consume $105,714 today and 0 next year e. G would borrow, consume $111,111 today and 0 next year
You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to apply for a mortgage loan on a house they want to buy. The house has a market value of $170,000. Your bank requires 1 5 of the market value as a down payment. (a) What is the amount (in $) of the down payment? $ (b) What is the amount (in $) of the mortgage for which the Bradys are applying? $ (c) Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments for principal and interest on the loan will be $5.37 for every $1,000 financed. What is the amount (in $) of the principal and interest portion of the Bradys' monthly payment? $ (d) What is the total amount (in $) of interest that will be paid over the life of the loan? $ (e) Your bank also requires that the monthly mortgage payments include property tax and homeowners insurance payments. If the property tax is $1,710 per year and the property insurance is $1,458 per…
You want to invest your savings of P200,000 in a business, which of the two businesses will you invest in? Calculate the following ratios to determine the financial health of each business. Ken's Milk Tea Burger House P400,000 20,000 Nila's Pizza Parlor Cash P320,000 25,000 P540,000 Accounts Receivable Property, Plant Equipment Accounts Payable Total Liabilities Total Equity Interest Expense and 650,000 150,000 270,000 60,000 245,000 825,000 9,000 615,000 12,000 Net Sales 420,000 640,000 170,000 56,000 Gross Profit 154,000 Net Profit 52,600 Average inventory 435,000 300,000 . Compute the following ratios to determine the financial health and condition of each business. Ken's Milk Tea Nila's Pizza Burger House Parlor 1. Current Ratio 2. Inventory Turnover 3. Debt Ratio 4. Gross Profit Ratio 13 5. Net Profit Ratio
You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to apply for a mortgage loan on a house they want to buy. The house has a market value of $170,000. Your bank requires 1 5 of the market value as a down payment. (a) What is the amount (in $) of the down payment? $ (b) What is the amount (in $) of the mortgage for which the Bradys are applying? $ (c) Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments for principal and interest on the loan will be $5.37 for every $1,000 financed. What is the amount (in $) of the principal and interest portion of the Bradys' monthly payment? $ (d) What is the total amount (in $) of interest that will be paid over the life of the loan? $ (e) Your bank also requires that the monthly mortgage payments include property tax and homeowners insurance payments. If the property tax is $1,710 per year and the property insurance is…
Stefanie takes out a five year car loan and agrees to pay $500 every month. This scenario shows how money functions as a OA. store of value. B. standard of deferred payment. O c. unit of accounting. D. medium of exchange. A
3. What are the advantages and disadvantages of a fixed principal, fixed interest loan? 4. What is the purpose of a bridge loan? 5. Distinguish between bank discount and simple interest.6. Differentiate between a stated rate of interest and an effective rate of interest. 7. What is the significance of finding the internal rate of return (IRR)? 8. Jill Kramer borrowed $25,000 to pay for a startup business. Jill must repay the loan at the end of five months in one payment with a 6 percent simple interest rate.What is the total amount that Jill must repay in five months?How much interest does Jill repay?9. Joe Jones went to his bank to find out how long it will take for $1,000 to amount to $1,350 at 9 percent simple interest. Solve Joe's problem.
3. Dave's Guitar Shop is thinking about building an additional property onto the back of its existing building for more storage. Dave consults with his banker about applying for a new loan. The bank asks for Dave's balance to examine his overall debt levels. Dave's total assets is P5,000,000 while his total liabilities is P25,000. Compute Dave's debt ratio.
RENT Connors Construction requires a large number of leased equipment to be purchased. The equipment costs $ 100. One option is to borrow $ 100 from a local bank and use it to purchase the equipment. Another option is a statement of the company's financial position before buying or renting equipment is shown as follows: Current assets Fixed assets Total assets $ 300 Debt 500 Equity $ 800 Liabilities and total equity $ 400 400 $ 800 What is the company's debt ratio if you decide to buy equipment? What if the lease and lease are not stipulated in the report's financial position? Is the financial risk of pecusalom different if you buy it rented? Explain.
based on the income statement and balance sheet of the company, will the company be successful after taking a 500.0 mil dollar loan? or should they sought other forms of financing?

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