All categories

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.

You might be interested in

Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

Now we solve for the intrinsic price using the gordon model

with multi-stage growth:

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

Finally we add them and get:

42.97160726

8 0

4 years ago

Required information Use the following information for the Exercises below. Skip to question [The following information applies

Lyrx [107]

Answer:

Follows are the solution to this question:

Explanation:

In point A:

The estimated amount of uncollectible allowance = $\$ \ 635,000 \times 4 \% = \$ \ 2,540,000$

In point B Journal

Titles and descriptions of accounts Debit Credit Calculation

Expenditure on bad debts $\$ \ 2,526,700$

Doubted debt allowance $\$ \ 2,526,700 \ \ (\$ \ 2,540,000 - \$ \ 13,300)$

(Bad Debts Expense recorded)

In point C Journal

Titles and descriptions of accounts Debit Credit Calculation

Expenditure on bad debts $\$ \ 2,553, 300$

Doubted debt allowance $\$ \ 2,553, 300 \ \ \ \ (\$ \ 2,540,000 + \$ \ 13,300)$

(Bad Debts Expense recorded)

5 0

3 years ago

he results for the variable gender show that ______. Multiple Choice gender and months of service are correlated females average

marusya05 [52]

Answer:

The correct option is: Males average $222.78 more than females in monthly salary ,

Explanation:

The results for the variable gender show that Males average $222.78 more than females in monthly salary because the coefficient for gender is 222.78 and male is coded as gender = 1. Therefore, male's average salary is $222.78 more than female's average salary.

7 0

3 years ago

In the recent past, the government has attempted to stimulate the economy by sending tax refunds to individual people so that th

blondinia [14]

Answer:

The correct answer to the following question will be "Consumption".

Explanation:

Investments, welfare spending, consumer spending are essential elements of GDP. That tells them what a nation is doing well. For every year, GDP is the world's total economic production.

Expenditure on resources consumption includes:

Durable goods (Furniture, cars, etc).
Non-durable goods (Oils. clothing, etc).
Services (Education, health, etc).

Therefore, it's the right answer.

3 0

3 years ago

What are two features of a bond?

Rus_ich [418]

Bonds have a maturity date, are perpetual, and pay a coupon rate.

3 0

4 years ago

Read 2 more answers