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Zolol [24]
3 years ago
11

A lender determines that a homebuyer can afford to borrow $220,000 on a mortgage loan. The lender requires an 85% loan-to-value

ratio. How much can the borrower pay for a property and still qualify for this loan amount (to the nearest $1,000)?
A: $187,000
B: $243,000
C: $254,000
D: $259,000
Business
1 answer:
Dmitry [639]3 years ago
7 0

Answer:

D: $259,000

Explanation:

The computation of the paying amount which borrower can pay for a property is shown below:

= Mortgage loan amount for borrow ÷  loan-to-value ratio

= $220,000 ÷ 85%

= $258,823.53

= $259,000 round off

We simply divide the mortgage loan by the loan to value ratio so that paying amount could arrive which borrower can pay for a property.

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acuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, the
romanna [79]

Answer:

For complete understanding lets first make EPU (Equivalent Production Unit)

                                                             Direct Material     Conversion

Units completed &transferred out         6,800                      6,800

Closing WIP                                               500                        100(500*20%)

Total units                                                7,300                       6,900

Closing WIP units = Opening WIP +During the year - units completed

                              = 700                 +     6,600           - 6,800

                              =500 units

On the basis of weighted average method following will be cost per unit:

Total Direct material cost/unit = (70,000 + 633,600)/7,300  = 96.3835

Total conversion cost/unit =(4,410+53,520+80,280(53,520*150%))/6,900=20.0304

Therefore, following would be the entries

WIP                      767,400

Material                               633,600

Conversion                          133.800 (53,520+80,280)

Finished goods    791,615 (96.3838+20.0304)*6,800

WIP                                        791,615

Working for closing unit

Material (500*96.3835) = 48,191

Conversion (500*20%*20.0304) = 2003.043

3 0
3 years ago
When offering financial products to clients, you may:
Anton [14]

Answer:

d. All of the above.

Explanation:

All the three actions are appropriate actions for when offering financial products to clients.

a) is appropriate because prior clients are likely to have most of the information in the company's records.

b) is appropriate because as you gain experience, you become more knowledgeabe and intuitive about which clients should be offered a determined product.

c) is appropriate because as a financial worker, it is your duty to decline requests for financial products from clients who do not meet the given criteria.

6 0
2 years ago
How is price a language for buyers and sellers?​
ZanzabumX [31]
Prices communicate info and provide incentives to buyers and sellers. And sometimes there negotiating involved. High prices are signals to producers to produce more and buyers to buy less. Low prices are signals for producers to produce less and for buyers to buy more.
3 0
3 years ago
the study of the emperors dead body to determine the cause of julius ceasars death is an example of ???
Mama L [17]

without context this sounds like the answer is forensic science.

5 0
3 years ago
Salmon Inc. has debt with both a face and a market value of $227,000. This debt has a coupon rate of 7 percent and pays interest
Dahasolnce [82]

Answer:

14.27%

Explanation:

Unlevered value = [Expected earnings before interest and taxes × (1- tax rate)]/Unlevered cost of capital

Unlevered value = [$87,200 x (1- 0.35)]/0.12 = $472,333.33

Levered value = Unlevered value + (Tax rate × Debt market value)

Levered value = $472,333.33 + (0.35 x $227,000) = $551,783.33

Value of equity = Levered value - Debt market value

Value of equity = $551,783.33 - $227,000 = $324,783.33

Cost of equity = Unlevered cost of capital + [(unlevered cost of capital - coupon rate) × (Debt market value/Value of equity) × (1 - Tax rate)]

Cost of equity = 0.12 + [(0.12 - 0.07) × ($227,000/$324,783.33) × (1 - 0.35)] = 0.1427, or 14.27%

Therefore, the firm's cost of equity is 14.27%

7 0
3 years ago
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