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3 years ago

Common purpose(s) of a "buydown" of an interest rate would be to:________.

Business

1 answer:

VLD [36.1K]3 years ago

7 0

Answer:

D) All of the above

Explanation:

A buydown can be defined as an act of paying a specified amount of money to a lender in exchange for a lower interest rate, in order to reduce the amount to be paid periodically such as for a home-buyer.

The common purposes of a "buydown" of an interest rate would be to:

1. To help a buyer to afford a more expensive home.

2. To help a buyer qualify for a home more easily.

3. To help the seller make their home more attractive to a prospective buyer.

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ahrayia [7]

In 2005, bankruptcy reform laws:

A: made student loans dischargeable in bankruptcy

B: required debtors to pay more of their debts in bankruptcy

Answer:

B: required debtors to pay more of their debts in bankruptcy

Explanation:

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which was passed in 2005, reviewed the bankruptcy process in America.

This law was reviewed because it wanted to prevent abuse of the bankruptcy process.

Therefore, In 2005, bankruptcy reform laws required debtors to pay more of their debts in bankruptcy.

6 0

3 years ago

Delta Diamonds uses a periodic inventory sistem. The company had five one- carat diamonds available for sale this year: one was

blsea [12.9K]

Answer:

$2300

Explanation:

The FIFO method is one in which inventory purchased first is sold first. Given that the company had five one- carat diamonds available for sale this year: one was purchased on June 1 for $500, two were purchased on July 9 for $550, and two were purchased on September 23 for $600 each. On December 24, the one was purchased on June 1 for $500 was sold

Ending balance

= 2 * $550 + 2 * $600

= $1100 + $1200

= $2300

4 0

3 years ago

the following are characteristics shared by both for-profit and not-for-profit corporations EXCEPT ________.

MArishka [77]

The following are characteristics shared by both for-profit and not-for-profit corporations EXCEPT <span> issuing shares of stock</span>

4 0

3 years ago

Financial Institutions are described as having an asset transformation function. Explain this function and describe how a bank t

anyanavicka [17]

Answer:

In simple words, Asset transformation can be understood as the process of turning small denominational, instantly available, and generally riskless deposit accounts into lenders moderately risky, high denomination assets that are returned according to a specified schedule–from obligations (deposits) with distinct traits.

4 0

3 years ago

You are considering an investment in fields and struthers, Inc, and want to evaluate the firm's free cash flow From the income s

kirill [66]

Answer:

A.) $81,100,000

B.) $64,000,000

C.) $17,100,000

Explanation:

EBIT = $90 million

Tax rate = 21%

Depreciation = $10 million

gross fixed assets increased by $56 million

current assets increased by $44 million

current liabilities increased by $36 million

A.) Operating Cash flow for 2021

EBIT + Depreciation - (EBIT × Tax rate)

$90, 000,000 + 10,000,000 - (90,000,000×0.21)

100,000,000 - (18,900,000) = $81,100,000

B.) Investment in Operating capital for 2021:

Increase in gross fixed asset + (increase in current asset - increase in liability)

$56,000,000 + ( $44,000,000-$36,000,000)

= $56,000,000 + $8,000,000

= $64,000,000

C.) Free cash flow

Operating Cash flow - investment in operating

$81,100,100 - $64,000,000 = $17,100,000

3 0

3 years ago