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bezimeni [28]
3 years ago
6

When a mortgage loan with level periodic payments has been completely repaid by the maturity date, it is said to be?

Business
1 answer:
Ira Lisetskai [31]3 years ago
4 0
When a mortgaged loan loan has been completely repaid by maturity date, the loan is said to be fully amortized. For example, you buy a house for $100. The interest on this house is 10% and the mortgage term is 1 year, your mortgage will be repaid in Nov 2018 by paying $9 every month, with a total interest of $5. You repaid the mortgage with interest. Then it is said to be fully amortized.
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A firm has adopted a policy whereby it will not seek any additional external financing. Given this, what is the maximum growth r
dlinn [17]

Answer:

9%

Explanation:

Given:

The net income = $12,000

Total equity = $40,000

Total assets = $80,000

Dividend payout ratio = 40%

Now,

Internal rate of return, r = \frac{\textup{Net Income}}{\textup{Total Equity}}\times100\%

or

Internal rate of return, r = \frac{\textup{12,000}}{\textup{80,000}}\times100\%

or  

Internal rate of return, r = 15%

and,

Retention ratio = 1 - Dividend payout ratio

= 1 - 0.40

= 0.60 or 60%

Now,

Growth rate = Retention ratio × Internal rate of return

or

Growth rate = 0.60 × 0.15

or

Growth rate = 0.09

or

Growth rate = 9%

7 0
3 years ago
On January 1, 2017, Waterway Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base
nikklg [1K]

Answer and Explanation:

The journal entries are as follows;

a. On Jan 1

No journal entry is required

b. On Feb 5

Contra asset Dr $1,320

        To Sales revenue $1,320

(being sales revenue is recorded)

Cost of goods sold Dr $670

            To Inventory $670

(being cost of goods sold is recorded)

c. On Feb 25

Cash $3,300

Contra asset Dr $1,320

        To Sales revenue $1,980

(being sales revenue is recorded)

Cost of goods sold Dr $300

            To Inventory $300

(being cost of goods sold is recorded)

5 0
2 years ago
On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34,
adoni [48]

Answer:

Jan. 22

Dr Cash $7,140,000

Cr Common Stock $6,300,000

Cr Paid in capital in excess of par $840,000

Feb. 27

Dr Cash $180,000

Cr Preferred Stock $135,000

Cr Paid-In Capital in Excess of Par-Preferred $45,000

Explanation:

Preparation of the entries for January 22 and February 27.

Jan. 22

Dr Cash $7,140,000

(210,000*$34)

Cr Common Stock $6,300,000

(210,000*$30)

Cr Paid in capital in excess of par $840,000

($7,140,000-$6,300,000)

Feb. 27

Dr Cash $180,000

(15,000*$12)

Cr Preferred Stock $135,000

(15,000*$9)

Cr Paid-In Capital in Excess of Par-Preferred $45,000

($180,000-$135,000)

7 0
3 years ago
Identify which assumption each given scenario references have.
NikAS [45]
Assuming it’s B) Transitive Tastes
5 0
2 years ago
Marcus paid $35 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Marcus
julsineya [31]

Answer:

The question is incomplete; Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon.

Marcus' consumer surplus=  $45-$35= $10

Starling's consumer surplus= $80-60= $20

Marcus'  producer surplus = $60-35 = $25

Explanation:

5 0
3 years ago
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