In ascertaining whether a borrower has the ability to pay off his loan over time, a mortgage bank may rely on calculating a tota
1 answer:
Answer:
Total debt ratio will be 44 %
So option (c) will be the correct option
Explanation:
We have given monthly principal and interest on mortgage loan = $635
Monthly Tax and insurance payments = $125
Car lease payment = $350
Now total monthly obligations = $625+$125+$350 = $1100
Gross monthly income = $2500
We have to find the total debt ratio
We know that total debt ratio is given by
Debt ratio %
So option (c) will be the correct option
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Answer:
$190.64
Explanation:
Data provided in the question:
Current selling price of shares = $180 per share
Dividend paid = $10.18
Expected growth rate, g = 6% = 0.06
Required rate of return, r = 12% = 0.12
Now,
The dividend for the following year to the next year, D1 = $10.18 × (1 + g)ⁿ
here, n = 2 ( i.e the duration of next year and the following year )
thus,
D1 = $10.18 × (1 + 0.06)²
or
D1 = $11.438
Therefore,
Price of stock one year from now =
=
= 190.637 ≈ $190.64
Answer:
8448.22
Explanation:
We are asked to calculate the present value of 20,000 in ten years.
<em>Resuming: </em>in this kind of problems we are asked for which lump sum becomes a certain amount in a given period of time at an annual rate