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Darina [25.2K]
3 years ago
9

A home improvement company was negotiating with a home owner to add two rooms onto a home. The company agreed to take a second m

ortgage as long as the homeowner also included the rest of the property in the loan. The company and the homeowner agreed to a price and the company provided the necessary disclosure form on Monday and the homeowner signed the agreement at noon the following day. Assuming that the week had five business days, until what time could the homeowner rescind the loan?
A: Tuesday, midnight
B: Thursday, midnight
C: Friday, midnight
D: There is no rescission on a house.
Business
2 answers:
Elina [12.6K]3 years ago
8 0

Answer:

Friday, midnight

Explanation:

According to federal law the right of rescission applies only to the refinancing of a mortgage. These laws do not apply to the purchase of a new home. If a borrower has the intentiom to cancel a loan, he must do so at the latest at midnight of the third day , that is once the completion of the refinancing, including having received a mandatory Truth in Lending disclosure from the lender and two copies of a notice advising him of his right to rescind. this case,

The loan documents were signed a Tuesday, the borrower has until Friday, midnight to cancel transaction. This is his/her right to rescission.

monitta3 years ago
3 0

Answer:

C) Friday, midnight

Explanation:

In this case, the homeowner is considered a borrower, and federal law gives borrowers three full business days after signing mortgage documents to rescind any loan. Since the loan documents were signed a Tuesday, the borrower has until Friday, midnight to cancel any deal (3 days = Wednesday, Thursday and Friday).

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By Nike changing the technology in their shoe, they are taking on a role of being more socially responsible. What type of busine
Arisa [49]

Explanation:

In this case, Nike is incorporating corporate governance into its business model, which is defined as a model for managing companies using the best market practices, using transparency, equity and social and environmental responsibility as essential parameters.

Companies today are no longer perceived by society as merely profitable entities, it is a social demand that companies assist in the development of society and minimize their impacts on the environment.

When companies develop programs to support society and sustainability, it guarantees the advantages of being better positioned in the market, attracting more investors, adding more value to its products and services and gaining a strategic and competitive advantage in the market.

5 0
3 years ago
If an activity generates a positive externality, the government can increase total economic surplus by ___ the activity, and if
Fofino [41]

Answer:

C. subsidizing: taxing

Explanation:

An activity generates a positive externality if the benefits of economic activities to third parties exceeds its costs.

Example of activities that generate positive externality are education and research.

Government ought to encourage the production of activities that generates postive externality. One of the ways this can be done is through Subsidy. Subsidy reduces cost of production and increases production.

An activity generates negative externality if the benefits of economic activities to third parties is less its costs.

An example of negative externality is pollution.

Government can discourage activities that generates negative externality by taxation. Taxation increases the cost of production and discourages production.

I hope my answer helps you

8 0
2 years ago
The total market value of the equity of ITM is $6 million, and the total value of its debt is $4
timofeeve [1]

Answer:

a. The required rate of return on Okefenokee stock is 16%.

b. WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. The required rate of return on Okefenokee's new venture is Ke = 18 %.

Explanation:

Here the given is,

E = $6 million, D = $4 million, Beta = 1.2,

Rmp = the expected risk premium on the market =10%.

Rf = The Treasury bill rate = 4%

a. The required rate of return on Okefenokee stock,

Ke = Rf + Beta \times Rmp = 4 + 1.2 \times 10 = 16%%.

b. Tax rate, T = 40%

The proportion of debt =Wd = D / (D + E) = 4 / (6 + 4) = 0.4

Proportion of equity, We = 1 - Wd = 1 - 0.4 = 0.6

Cost of debt, Kd = Risk-free rate as debt is free of default = 4%

WACC = Wd \times Kd \times (1 - T) + We\times Ke\\\\ = 0.4 \times4\times (1 - 40) + 0.6 \times 16\\\\ = 10.56%

WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. Suppose the company wants to diversify into the manufacture of rose-colored glasses. The beta of optical manufacturers with no debt outstanding is 1.4. What is the required rate of return on Okefenokee's new venture? (You should assume that the risky project will not enable the firm to issue an additional debt)

Ke = Rf + Beta \times Rmp\\\\Ke     = 4 + 1.4 \times 10 = 18%

Ke = 18 %.

5 0
3 years ago
The commercial banking system, because of a recent change in the required reserve ratio from 8 percent to 10 percent, finds that
Rainbow [258]
<span>If it is unable to obtain any additional reserves, it must reduce deposits and money supply by $500 Million.  
$50 Million x 10 = $500 Million.
(10% of $500 Million = $50 Million)</span>
3 0
2 years ago
You have been learning about the accounting equation, debits/credits, and account normal balances. The accounting equation is th
Monica [59]

Answer:

using the word DEALER

since we record our debit accounts on the left hand side of the Ledger and we record credit accounts on the right hand side of the Ledger hence

DEA represents ( Dividends, expenses , Assets ) which are recorded in Debit accounts  while

LER represents ( Liabilities ,Equity and revenues ) which are recorded in credit accounts

Explanation:

The fundamentals of accounting is based on the ability to distinguish between a Debit and a credit . ability to do this efficiently will help in the process of balancing the ledger at the end of each accounting period. most times the concepts of Debits and credits are not so easy to memorize hence i will such the Fun way of Memorizing them which is;

using the word DEALER

since we record our debit accounts on the left hand side of the Ledger and we record credit accounts on the right hand side of the Ledger hence

DEA represents ( Dividends, expenses , Assets ) which are recorded in Debit accounts  while

LER represents ( Liabilities ,Equity and revenues ) which are recorded in credit accounts

6 0
2 years ago
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