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3 years ago

If a borrower provides collateral and fails to repay the loan,

Business

2 answers:

pashok25 [27]3 years ago

7 0

Answer:

If a borrower provides collateral and fails to repay the loan, then (B) The lender can sell the collateral to cover losses.

Explanation:

Because of a gold credit, if the borrower neglects to reimburse the advance, the bank has the full position of selling the collateral and recuperates their cash. When the cost of gold is, more the cash left in the wake of taking the extraordinary sum will come back to the borrower.

Therefore, this is a significant drawback to defaulting on protected loans. When this occurs, the advantages you set up for guarantee when getting a verified credit can be repossessed right away. In numerous U.S. states, banks are not constrained to tell borrowers that their insurance resources have been seized and auctions off to a buyer.

MakcuM [25]3 years ago

6 0

The correct option is B.
In case of non repayment of loan, the lender can sell the collateral and used the proceeds to cover his losses. A collateral is always in form of properties which are substantial in value, it is often requested that borrowers provide collateral in order to reassure lenders that they will pay up.

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Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm h

Snezhnost [94]

Answer:

The Break Even Point is the Sales Value that will cover the cost of production. Meaning the Sales Value that will bring profitability to Zero

Break Even sales for Company wide = $378,000

Break Even Value for Chicago is $111,429

And Break Even Value for Minneapolis is $120,000

The Addition of both Outlets/Offices Break Even Sales is less than the Company-wide because the Offices don't share in the Common Fixed Expense as these are specific to Group reporting.

Explanation:

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4 years ago

On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.6 million cash to expand operations. The l

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Answer:

Aug 1st,2021; Entry to record note issuance is as followed:

Dr Note Receivable $20,600,000

Cr Cash $20,600,000

(to record the issuance of note to Trico Technologies)

Dec 31st,2021; Entry to record interest income from note receivable:

Dr Interest revenue receivable $515,000

Cr Accrued Interest Income $515,000

(to record accrued interest income of 5 months; calculated as 20,600,000 x 6% x 5/12 = $515,000)

3. January 31st, 2022; Entry to record repayment of the note at maturity:

Dr Cash $21,218,000

Cr Interest Income $103,000

Cr Note Receivable $20,600,000

Cr Interest Income receivable $515,000

( to record the repayment of the principal and interest income, in which 5 months of interest income had already been recorded in 2021, the other 1 month of interest income $103,000 (20.6 million x 6%/12) is recorded at the end of January which is also maturity time.

Explanation:

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3 years ago

Marigold Corp. has begun and ending raw materials inventories of $64000 and $80000, respectively. If direct materials used were

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Answer:

The answer is $126,000

Explanation:

Please find the attached file for the calculation.

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4 years ago

A ________ exists when various companies producing similar products or services work together to control markets for the types o

iragen [17]

A cartel exists when various companies producing similar products or services work together to control markets for the types of goods and services they produce.

A cartel is a group of independent market participants who work together to improve profits and control the market. Cartels are usually associations in the same line of business and mergers of competitors.

1: Written agreement between Sengoku. 2 : An association of independent commercial or industrial enterprises aimed at limiting competition or fixing the prices of illegal drug cartels. 3 : Faction combination for joint action.

Examples of cartels: Organization of the Petroleum Exporting Countries (OPEC), an oil cartel whose members control 44% of world oil production and 81.5% of world oil reserves.

Learn more about cartel here

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2 years ago

n December , General Electric (GE) had a book value of equity of billion, billion shares outstanding, and a market price of

Gennadij [26K]

Answer:

a. GE's market capitalization = 276.60 billion; and GE's market-to-book ratio = 2.85.

b. GE's book debt-equity ratio = 2.08; and GE's market debt-equity ratio = 0.73

c. GE's enterprise value = $374.26 billion

Explanation:

Note: This question is not complete as all its data are omitted. The complete question is therefore provided before answering the question as follows:

In December 2015, General Electric (GE) had a book value of equity of $97.1 billion, 9.2 billion shares outstanding, and a market price of $30.06 per share. GE also had cash of $103.9 billion, and total debt of $201.7 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value?

The explanation to the answer is now provided as follows:

a. What was GE's market capitalization? What was GE's market-to-book ratio?

Calculation of GE's market capitalization

Market capitalization = Number of shares outstanding * market price per share = 9.2 billion * $30.06 = 276.60 billion

Calculation of GE's market-to-book ratio

Market-to-book ratio = Market capitalization / Book value of equity = $276.552 billion / $97.1 billion = 2.85

b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio?

Calculation of GE's book debt-equity ratio?

Book debt-equity ratio = Total debt / Book value of equity = $201.7 billion / $97.1 billion = 2.08

Calculation of GE's market debt-equity ratio

Market debt equity ratio = Total debt / Market capitalization = $201.7 billion / $276.46 billion = 0.73

c. What was GE's enterprise value?

Enterprise value = Market capitalization + Total debt - cash = $276.46 billion + $201.7 billion - $103.9 billion = $374.26 billion

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3 years ago