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mylen [45]
3 years ago
5

The Smiths' purchased a residence for $75,000. They made a down payment of $15,000 and agreed to assume the seller's existing mo

rtgage, which had a current balance of $23,000. The Smiths' financed the remaining $37,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a:_________
1- Wraparound mortgage
2- Package mortgage
3- Balloon note
4- Purchase money mortgage
Business
1 answer:
kati45 [8]3 years ago
4 0

Answer:

The correct answer is 4

Explanation:

Purchase money mortgage is the kind of mortgage which is issued to the borrower through the seller of the home as a part of the transaction of the purchase. It is also referred or called as the owner financing, which is usually conducted where the buyer could not qualify for the mortgage.

Under this situation, the buyer financed the balance amount of the purchase price through executing the second mortgage where the seller become the mortgagee, so this is the kind of loan is known as the purchase money mortgage, which also referred to as the purchase money second, which is a steamlined and it is the most cost effective option of financing.

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When a firm issues 50,000 shares with a par value of $5 for $22 per share, additional paid-in capital will:
Aloiza [94]

Answer:

The additional paid-in capital will increase by $850,000

Explanation:

Additional paid up capital: It is that paid up capital which is excess of par value. It is mentioned in the balance sheet when new shares is issued.

The computation of additional paid up capital are shown below:

= Difference of per share price × Number of shares

where,

difference = $22 - $5 = $17

So, the value equals to

= $17 × 50,000

= $850,000

So, the additional paid-in capital will increase by $850,000

6 0
3 years ago
When conducting a five Cs analysis and developing the context, which factor should NOT be included in the analysis? Group of ans
aksik [14]

Answer: Firm Capabilities

Explanation:

The 5Cs of Marketing are used by Companies to come up with effective Marketing strategies by using them to clarify exactly what needs to be accomplished.

The 5Cs are; Company, Customer, Collaborators, Competition and Context.

Firm Capabilities does not fall under Context because Context deals with Political, Social, Economical and Technological aspects of the place in question.

Firm Capabilities fall under Company analysis where the company aims to find out if it is capable of of meeting Consumer demands.

4 0
3 years ago
According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they conti
Radda [10]
The Incubation because it drop to a low level so it’s E
7 0
3 years ago
Read 2 more answers
Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies'
Pavel [41]

Answer:

False

Explanation:

Answer:

False

Explanation:

financing activities are business transactions that are used to fund either company operations or the business expansion expansions.

Some examples of financial activities includes:

1. Borrowing and paying back short-term loans.

2. Borrowing and paying back long-term loans.

receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks are not financing activities.

4 0
3 years ago
Suppose three engineers come to you with a plan for a disruptive, yet-to-be developed software program that seems compelling. Th
Vitek1552 [10]

Answer:

Explanation:

The Proposed bargain or deal is supportive of the business visionaries instead of the financial backer(investor) since all the capital is coming from the financial backer and the investor will be receiving just only 25% for the bargain or deal while he faces all the challenges posed or loss of capital. The business visionaries are not placing in any of their own personal capital but only their idea. They likewise have a bigger say in the administration of the business and the financial backer has no power over the choice since he conveys just 25% votes. Consequently, it's not a good bargain or deal for the financial backer considering the risk-reward ratio.

The counter-offer will include raising a proposed equity percent rate to half  (i.e 50%). In addition to that, the financial backer needs to demand another seat on the board with the goal that they have equivalent authority over the administration and its choices. The most reduced the financial backer can go down is equity of 40% stake.

8 0
3 years ago
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