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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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Which of the following is the last step in creating a budget?
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Suppose an investor is considering one of two investments that are identical in all respects except for risk. If the investor an
natali 33 [55]

Answer:

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Explanation:

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4 years ago
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3 0
4 years ago
Scampini Technologies is expected to generate $25 million in free cash flow next year, and FCF is expected to grow at a constant
Feliz [49]

Answer:

The stock’s value per share is $10.42

Explanation:

For:    

FCF1 = Expected cash flow of the firm

        = $25 million  

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g = 4%    

Firm value = FCF1/(WACC - g)    

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We know that there is no debt & preferred stock, so the firm value will be equal to Equity value :

Firm value = Equity value

                 = $416,666,666.67

stock value per share = Equity Value/No. of share outstanding

                                     = $416,666,666.67/40,000,000

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Therefore, The stock’s value per share is $10.42

7 0
3 years ago
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