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Likurg_2 [28]
4 years ago
9

Case 2 You have been asked by a small credit union to help investigate an alleged fraud in a bankruptcy case in which it is invo

lved. It wants you to start right away because it is worried that the debtor will destroy evidence vital to the case. The credit union has not received permission from the judge involved in the case to contract you, but it tells you that if you find fraud, there will be no problem with the judge. What should your response to this be
Business
1 answer:
erma4kov [3.2K]4 years ago
5 0

Answer with its Explanation:

Here, there are two case scenario depending upon the payment related to my services. The credit union will either pay through the debtor's estate or will pay independent of court.

Now, if the credit union is willing to pay me out of debtor's estate then the offer must be declined as the court order is mandatory here for investigating any irregularities. Furthermore, the order will also define my role and responsibilities and duties associated with the investigation task.

Now on the other hand, if the credit union is of the opinion that they will pay independent of court then I will accept their offer and will offer my investigation services on my own terms and conditions.

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8 0
3 years ago
Which of the following statements is FALSE?
soldi70 [24.7K]

Answer: The following statements is false: <u><em>Mutual aid and assistance arrangements and Memorandums of Understanding (MOUs) cannot be used for supplementing incident staff.</em></u>

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4 years ago
Suppose that five years ago you borrowed $300,000 using a 30-year fixed-rate mortgage with an annual interest rate of 10% with m
Elenna [48]

Answer:

Please check the explanation below.

Explanation:

Rate of Interest =10% or 0.83% monthly

Monthly Payment under this plan=PMT(0.0083, 360, 300000) =$2,632.71

Loan outstanding after 5 years of payments =$289,723

New Interest Rate =8.5% or 0.7083% monthly

Balance Tenure= 25 years

New Monthly Installment =PMT(0.007083,300,289723) =$2,332.93

Monthly savings in installment reduction =$2,632.71 - 2,332.93 =$299.78

a. Net present value of refinancing = -0.05x289,723 + 299.78x{(1-(1+0.007083)-300)/0.007083}

                                                  = -14,486.15 + 299.78x124.1886

                                                  = -14,486.15 + 37,229.25

                                                  = 22,743.10

b. With new monthly installment, balance outstanding at the end of 8th year =$278,258

Net Present Value of Refinance = -0.05x289,723 + 299.78x{(1-(1+0.007083)-36)/0.007083}

                                                  = -14,486.15 + 299.78x31.68

                                                  = -14,486.15 + 9,446.46

                                                  = -4,989.68

c. For refinance loan to have net present value positive, let n payments are required,

NPV = -0.05x289,723 + 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15 = 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15x0.00783/299.78 =(1-(1.007083)-n)

0.3423 = 1-(1.007083)-n

(1.007083)-n = 0.6577

(1.007083)n = 1.5204

Taking Log both sides,

n = log(1.5204)/log(1.007083)

n = 59.36

Hence, he would need to make 60 payments for making NPV of refinance as zero.

3 0
3 years ago
Warnes Motors' stock is trading at $20 a share. Three-month call options with an exercise price of $20 have a price of $1.50. Wh
jek_recluse [69]

Answer:

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Price increment = 10% to $22

It's not be noted that the discounted present value of a price of an option is represented by its expected payoff.

An increment of $2 in stock price attracts an increment of more than $2 in the payoff option.

Having highlighted that, it's also to be noted that the increment in expected payoff will be by an amount less than $2 and same with present value because the possibility is less than 1. So, the price of the option will increase by less than $2.

Moving to the percentage increase;

This will be larger than 10%.

This is because when stock price increases by 10%, the value of the option will increase by more than 10%.

8 0
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