Answer:
d. 44%
Explanation:
Calculation to determine what DTI ratio is
First step is to calculate the Debt
Using this formula
Debt = (Rent expense + Carr payment + Loan + Credit card payment) × Number of months in a year
Let plug in the formula
Debt =[($695 + $265 + $200 $160) × 12 months]
Debt= $1,320 × 12 months
Debt = $15,840
Now let calculate DTI ratio using this formula
Using this formula
Debt to income ratio = (Debt) ÷ (Income) × 100
Let plug in the formula
DTI ratio=[ ($15,840 ÷ $36,000) × 100]
DTI ratio=0.44*100
DTI ratio= 44%
Therefore DTI ratio is 44%
Answer:
$56.19
Explanation:
Current stock price can be determined by calculating the present value of the dividend payments
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 4.35
Cash flow in year 2 = 5.45
Cash flow in year 3 = 6.65
Cash flow in year 4 = 61
I = 9.4
PV = $56.19
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
85% is the right answer because I said so...
