Kayla Gordan plans to borrow $300,000 from ANZ bank to set up a Nail Salon.She currently has $10,000 in savings and she will use her house as security for the loan.Which of the following best represents a risk associated with this financing method
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Kayla Gordan plans to borrow $300,000 from ANZ bank to set up a Nail Salon.She currently has $10,000 in savings and she will use her house as security for the loan.Which of the following best represents a risk associated with this financing method?
A.Kayla's proportion of business ownership will be diluted
B.Interest payments are tax deductible
C.Bank will repossess her house if she defaults on the loan
D.Kayla is required to pay dividends to the bank
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- Discuss the following scenarios, then to decide which option is best and why. Susan and Jose rent an apartment and have been saving for a house. They now have $10,000 in the bank. Susan owes $4,000 on a low-interest credit card; Jose owes $4,500 on his car. Susan wants to pay the credit card and car off to eliminate the debt. Jose wants to keep the cash in the bank and continue saving for the house. What are the pros and cons of each one’s argument? Please be detailed and concise. Feel free to use a chart or table to represent your argument. Jack is a 40-year-old construction worker. He makes $33,500 per year. He only saves 5 percent of his salary per year since it is all he feels he can afford. His friend Joe suggests that he invest his money conservatively so that it won’t lose as much value if the market takes a nosedive. His other friend Jim thinks that investing aggressively with high risk is the way to go since Jack has several years to work to make up for any losses. What do…Susan and Jose rent an apartment and have been saving for a house. They now have $10,000 in the bank. Susan owes $4,000 on a low-interest credit card; Jose owes $4,500 on his car. Susan wants to pay the credit card and car off to eliminate the debt. Jose wants to keep the cash in the bank and continue saving for the house. What are the pros and cons of each one’s argument? Please be detailed and concise. Feel free to use a chart or table to represent your argument.Shira is ready to buy a house as she is tired of renting. She has an idea of how the Home Buyers Plan (HBP) works. For one thing, she knows that the current legislation governing the HBP allows for a maximum withdrawal amount of $35,000 from a Registered Retirement Savings Plan (RRSP). She is however only looking to withdraw the minimum amount from her RRSP for a conventional mortgage based on a property valued at $160,000. She also knows that she has to pay at least 1/15th of the amount that she borrows under this plan. As of today, her RRSP has a market value of $56,320. What is the minimum annual repayment required based on the amount she is looking to withdraw from her RRSP under the HBP? Select one: O a. $3,045.33 O b. $3,754.67 O c. $2,133.33 O d. $2,333.33 Oe. $3,433.33
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