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2 years ago

In a credit application, besides one's capacity to pay, creditors also consider which of the following?

Business

1 answer:

DochEvi [55]2 years ago

4 0

Answer:

The lenders use a system of five Cs to know about the creditworthiness of potential borrowers. They weigh five characteristics of the borrower and various conditions of the loan, chances of default and risk of loss. The five Cs used by the lender are capacity, character, collateral, capacity and conditions.

The first C is character, it can be known by the previous loans of the applicant.

Debt to income ratio is the second C.

The third C is capital, it is the amount of money possessed by an applicant.

Collateral is the fourth C, it is the asset that can be used to back the loan.

The fifth C is conditions, the amount of the loan, its purpose and the prevailing interest rate in the market are known as conditions.

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When you compose a message, you want your audience to find the information it needs quickly and to understand it. Your message s

Shalnov [3]

Answer:

Breaking paragraphs into shorter chunks.

Explanation:

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By chunking a paragraph means to break it down into smaller parts. a paragraph can be chunked into sentence and phrases. Paragraphed can be broken into smaller parts to improve readability.

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3 years ago

Which of the following is a visual cue that would signal important information in class?

Nookie1986 [14]

Answer:

Explanation:

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2 years ago

How do you find the total fixed cost using the table

iogann1982 [59]

Answer:

Total cost (TC) = Total variable cost (TVC) + Total fixed cost (TFC)

Therefore,

Total fixed cost = Total cost - Total variable cost

hope am helpful

6 0

1 year ago

Read 2 more answers

Third-Party Woes. Trudy owed Sam $40 for a book she purchased from him. Trudy mowed Betty's yard for $40 and agreed with Betty t

Blizzard [7]

Answer:

Refer below.

Explanation:

Answer is intended both & Done.

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3 years ago

Miltmar Corporation will pay a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 4%

____ [38]

Answer:

A. Market Capitalization rate = 13%

B. Intrinsic Value = $46.22

Explanation:

A. Market Capitalization rate:

CAPM should be used to calculate market capitalization from the given data. Following is the formula for CAPM

$CAPM=r+(MxB)$

r = risk free rate

M = market portfolio return

B = beta

Solution:

$CAPM=0.04+(0.75x0.12)$

CAPM = 13%

B. Intrinsic Value of stock

Gordon Growth Model (GGM) should be used to calculate intrinsic value of stock based on the given data.

Following is the formula for GGM

$GGM=Dx(1+g)/(r-g)$

D = Current Dividend

g = Dividend Growth rate

r = market capitalization rate (CAPM calculated in part A)

Solution:

$DDM=4x(1+0.04)/(0.13-.04)$

DDM = $46.22

Note: All values are rounded off to two decimal points.

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3 years ago