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mario62 [17]
3 years ago
5

Given the following information, calculate the loan-to-value ratio of this commercial loan: estimated net operating income in th

e first year: $150,000; debt service in the first year: $100,000; loan amount: $1,000,000; purchase price: $1,300,000.
a. 1.75
b. 0.77
c. 0.08
d. 1.30
Business
1 answer:
tatyana61 [14]3 years ago
7 0

Answer:

b. 0.77

Explanation:

The formula to compute the loan to value ratio is shown below:

= Loan amount ÷ Purchase price

= $1,000,000 ÷ $1,300,000

= 0.77

It shows a relationship between the loan amount and the purchase price so that the accurate ratio can come

All other information that is given is not relevant as it is related to the debt yield ratio. Hence, ignored it

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The following information is related to Dickinson Company for 2017.
MakcuM [25]

The answer & explanation for this question is given in the attachment below.

3 0
3 years ago
Zapper has beginning equity of $293,000, net income of $69,000, dividends of $58,000 and stockholder investments of $24,000. Its
Yuki888 [10]

Answer:

$328,000

Explanation:

As we all know that:

Ending Equity = Opening Equity + Share Issues + Net Income – Net Loss – Dividends Paid

Here,

Opening Equity is $293,000

Money raised through Shares Issuance was $24,000

Net Income would be $69,000

Dividends paid were $58,000

There were no losses as their is Profit for the year (Net Income).

By putting values, we have:

Ending Equity = $293,000  +  $24,000   +  $69,000   -  $58,000

= $328,000

8 0
3 years ago
Sheridan company offers its customers a pottery cereal bowl if they send in 3 boxtops from Sheridan Frosted Flakes boxes and $1.
Evgesh-ka [11]

Answer:

$117,600

Explanation:

Boxes of Frosted Flakes ×Estimate of Box Tops to be redeemed

1,344,000×60%= 806,000

806,000- 630,000 (Box Tops redeemed) =176,400

Estimate of Box Tops left to be received /Number of Box Tops Needed per bowl

176,400/3= 58,800 Total bowls estimated to be sent to customers in future

58,800 x 2.00 (The Cost of bowls to company was $3 while the cash to be received from customer was $1)

= $117,600 Which will be the total premium liability to be recorded.

6 0
3 years ago
Read 2 more answers
Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $9,000, and $1
nika2105 [10]

Answer:

$21,435.74

Explanation:

Marko will pay as much as the discounted present value of the cash flow:

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

Maturity  $5,000.00

time  1.00

rate  0.14000

\frac{5000}{(1 + 0.14)^{1} } = PV  

PV   4,385.9649

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

Maturity  $9,000.00

time  2.00

rate  0.14000

\frac{9000}{(1 + 0.14)^{2} } = PV  

PV   6,925.2078

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

Maturity  $15,000.00

time  3.00

rate  0.14000

\frac{15000}{(1 + 0.14)^{3} } = PV  

PV   10,124.5727

We add them together and get the total price for ABC Co

\left[\begin{array}{ccc}#&Cashflow&Discounted\\&&\\1&5000&4385.96\\2&9000&6925.21\\3&15000&10124.57\\&total&21435.74\\\end{array}\right]

8 0
3 years ago
James hires Franco for a painting job. Their contract explicitly states that​ Franco's employment can be terminated if he is emp
brilliants [131]

Answer: condition subsequent

                                         

Explanation:  A condition subsequent is an incident or set of circumstances that bring something to a conclusion. A subsequent circumstance is being used as a symbol in a legal sense to put an end of one's constitutional rights or responsibilities.

This generally occurs when someone do anything illegal or unethical in the eyes of law. In the given case, Franco got employed by some other party although he had a contract with James that he cannot do that. Hence we can conclude that the given case depicts condition subsequent.

8 0
3 years ago
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