Devine Linens (DL) must raise $14,000,000 to support future growth. If it raises the funds by issuing stock, DL must pay an inve
1 answer:
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A mortgage of $80,000 with 2 points means the borrower would have to pay at closing $800 is false because the real pay at closing is $1,600.
<h3>What is mortgage?</h3>A mortgage is a loan that is used to buy or to maintain a land, home, or other sort of real estate.
The borrower checks to refund the lender over a period of time, usually in an ordination of regular installments divided into principal and interest. The property is used as security for the loan.
According to the given information,
Mortgage Amount = $80,000
Points = 2
Let the 2 points is taken as a percentage:
Point 1 = 1%, and
Point 2 = 2%
Now, as we know that in the loan process, the amount of point is cyphered at the closing. Then, the closing cost is commuted as:
Therefore, the given problem is false, that the borrower have to pay $800, he would have to pay only $1,600.
Learn more about the mortgage, refer to:
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Answer:
Beta of Stock C is 1.6
correct option is d. 1.6
Explanation:
given data
portfolio beta = 1.2
stock A beta = 0.9
stock B beta = 1.1
to find out
beta of stock C
solution
we will apply here Portfolio Beta equation that is express as
Portfolio Beta = ( Weight of Stock A × Beta of Stock A ) + ( Weight of Stock B × Beta of Stock B ) + ( Weight of Stock C × Beta of Stock C ) ......................1
here weight for each stock =
put here value we will get
1.2 = ( × 0.9 ) + (
× 1.1 ) + (
× Beta of Stock C )
solve it we will get
Beta of Stock C = 1.599
so Beta of Stock C is 1.6
and correct option is d. 1.6