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.
Answer:
The correct option is D
Explanation:
Return on common stockholders' equity also known as ROE which stands for Return on equity ratio, that measures the ability of the firm or company to generate the profits from the investment of shareholders in the company.
Where as Debt to assets ratio, is the one which measures the percentage of aggregate assets of the firm or company which were financed by the creditors.
Therefore, the return on common stockholders' equity is related to the debt to asset ratio.
Answer:
c. Balance of trade is equal to the sum of current account balance and financial account balance.
Explanation:
The balance of trade is the difference in value between a country's imports and its exports over time. Balance of trade ( BOT) is expressed in monetary terms. If a country has more exports than imports, it has a positive trade balance or a trade surplus. Balance of trade is also known as international trade balance or trade balance.
Economists use the balance of trade in determining the country's current account. A trade deficit or trade surplus on its own does not mean that the economy is weak or strong in that period. The balance of trade is obtained by subtracting net imports from net exports.
Answer:
c) 60% of direct labour cost
Explanation:
<em>I</em><u><em>ndirect costs are also known as overheads</em></u><em>. They are costs which are not incurred directly for the service been rendered. These costs can allocated to the cost of the core service using the direct labour cost basis as requested by the question.</em>
<em>To ascertain the indirect costs rate, we use the formula below:</em>
Indirect cost rate = (Indirect cost/Direct labour cost) × 100
From the question,
<em>Indirect cost = total cost less the direct labour cost</em>
Indirect cost = $4,000,000 - 2,500,000
= $1,500,000
Indirect cost rate = Indirect cost/Direct labour cost × 100
= 1,500,000/2,500,000 × 100
= 60% of direct labour cost
Answer:
C) the market will devote too few resources to the production of the good.
Explanation:
The problem with free riding is that a good or service is used by too many people and paid by only a few, because there is an oversupply of the good or service. But it is too difficult or too expensive to separate those who actually pay form those who don't. Therefore private markets tend to undersupply public goods.
For example, police officers must "serve and protect" everyone, not just the people that pay their taxes. The same applies to the use of public beaches or parks, anyone can use them even without paying for their maintenance.
