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2 years ago

A home equity loan can be risky because the lender can foreclose if you don’t make your payments

Business

2 answers:

olganol [36]2 years ago

8 0

Answer:

FALSE

Explanation:

lender can forceclose on refinance of not.

Grace [21]2 years ago

5 0

Unless you're using it to buy a different home, you're reversing the equity-building process and increasing your debt. It's also important to remember that when you tap equity, your home is the collateral: the lender has the right to foreclose if you fall behind on your payments

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Healthy Foods has a book value per share of $32.68, earnings per share of $3.09, and a price-earnings ratio of 16.8. What is the

hammer [34]

The market-to-book ratio is 1.59%

<h3>How does market to book ratio work?</h3>

A financial valuation statistic called the Market to Book Ratio, commonly known as the Price to Book Ratio, is used to assess how a company's current market value compares to its book value. The current stock price of all outstanding shares represents the market value (i.e. the price that the market believes the company is worth).

<h3>How do you interpret a high market to book ratio?</h3>

A high book-to-market ratio could indicate that the stock of the company is being valued by the market below its book value. The price-to-book ratio, which is only the opposite of the book-to-market ratio formula, is well-known to investors.

learn more about market-to-book ratio here <u>brainly.com/question/14616549</u>

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8 0

1 year ago

Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians

gulaghasi [49]

Answer:

Quantity will rise, and the effect on price is ambiguous.

Explanation:

Music compact discs are normal goods. There is a positive relationship between the demand for the normal goods and the income of the consumers.

If the compact disc players become cheaper to produce then as a result all the producers start producing music compact discs and this will increase the supply of music compact disc. This will shift the supply curve rightwards.

And if the income of the music lovers increases then as a result the demand for music compact discs increases. This will shift the demand curve rightwards.

Therefore, these changes will increase the equilibrium quantity and the impact on equilibrium price is ambiguous because that will be dependent upon the magnitude of the shift of supply and demand curve.

3 0

3 years ago

Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,600 monthly. The contract currently sells for $117

Tanzania [10]

Answer:

The monthly return on this investment vehicle is 1.37%

Explanation:

A perpetuity contract is one which lasts forever, It does not any time limit. Live Forever Life Insurance Co will pay $1,600 for indefinite time on today's investment of #117,000.

Monthly return will be calculated using following formula:

Present value of Perpetuity = Perpetuity Received / Interest rate

$117,000 = $1,600 / r

r = $1,600 / $117,000

r = 1.37%

Monthly return on the perpetuity is 1.37% for this perpetuity.

4 0

3 years ago

A registered investment company whose share price fluctuates independently of its net asset value is most likely

bazaltina [42]

Answer:

Closed-End Fund

Explanation:

Close-End Funds raise money through an IPO and then its stocks are traded on secondary markets. There are no new issuance of stocks, nor there are repurchases of stocks, therefore, the price of their stocks is determined by the market. That is why their stock price will be based on its net asset value, but it fluctuates and is not dependent on it.

5 0

3 years ago

A famous quarterback just signed a contract for $16 mil, providing $3.6 million a year for 4 years. A less famous receiver signe

Damm [24]

Answer:

The PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

Explanation:

Present value (PV) refers to the valuation date value of a stream of income expected to be received in the future.

The PV for each of the two contracts can calculated by using the interest rate of 9%% (i.e. 0.12) as the discounting factor (r) to calculate the PV for each year. The discounting formula to use is (1+r)^n where n represents each relevant year. The calculations are done as follows:

1. For a famous quarterback

Step 1. Calculation of the PV for year

Year 1 PV = $3,600,000 ÷ (1.09)^1 = $3,302,752.29

Year 2 PV = $3,600,000 ÷ (1.09)^2 = $3,030,047.98

Year 3 PV = $3,600,000 ÷ (1.09)^3 = $2,779,860.53

Year 4 PV = $3,600,000 ÷ (1.09)^4 = $2,550,330.76

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $11,662,991.56.

2. For a less famous receiver

Step 1. Calculation of the PV for year

Year 1 PV = $3,000,000 ÷ (1.09)^1 = $2,752,293.58

Year 2 PV = $3,000,000 ÷ (1.09)^2 = $2,525,039.98

Year 3 PV = $3,000,000 ÷ (1.09)^3 = $2,316,550.44

Year 4 PV = $3,000,000 ÷ (1.09)^4 = $2,125,275.63

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $9,719,159.63.

In addition, the $3,000,000 is to receive now is added to the $9,719,159.63 as follows:

PV of less famous receiver = $9,719,159.63 + $3,000,000

= $12,719,159.63

Conclusion

Therefore, the PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

5 0

3 years ago