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3 years ago

Why do lenders require collateral for a secured loan? (10 points)

Business

1 answer:

Vanyuwa [196]3 years ago

6 0

Answer:

A) It reduces risk to the lender

Explanation:

Collateral refers to a valuable asset that a borrower offers to the lender to secure a loan. Typically, the collateral will have a higher market value than the loan amount. Asset mostly used as collateral include homes, properties, and motor vehicles. The lender will keep custody of the title documents until the borrower repays full amount borrowed.

Offering collateral for a loan indicates the borrower's willingness to repay the loan. The lender is assured of recovering their money. If the borrower defaults, the lender will dispose of the collateral to recover their money. This reduces the lender's risk.

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When a home builder decides to computerize all of its production schedule, it directly answer the what how or who question

pashok25 [27]

Answer:

The answer is How.

Explanation:

When a home builder decides to computerize all of its production schedule , it directly answers the HOW question.

Hope this helps!! ;)

4 0

4 years ago

Torch Industries can issue perpetual preferred stock at a price of $71.00 a share. The stock would pay a constant annual dividen

kodGreya [7K]

Answer:

the company's cost of preferred stock, rp is = 9.15%

Explanation:

step 1. Consider the following formula.

Cost of preferred stock = annual dividend / Price *100

Step 2. Set the values of the variables.

= $ 6.5/$ 71*100

step 3. Solve.

= 9.15%

Answer : 9.15 %

6 0

3 years ago

A typical registration statement filed with the SEC includes: (select all that apply) a. Any pending lawsuits or special risk fa

madam [21]

A typical registration statement filed with the SEC does not include -(a) Any pending lawsuits or special risk factors (b) Any past settlement offers

Explanation:

A typical registration statement filed with the SEC includes:

1. The securities offered for sale

2. The corporation's properties and business

3. The management of the corporation, including managerial compensation, stock options, pensions, and other benefits

4. how the corporation intends to use the proceeds of the sale

5. any pending lawsuits or special risk factors

A typical registration statement filed with the SEC does not include -(a) Any pending lawsuits or special risk factors (b) Any past settlement offers

5 0

3 years ago

The trial balance of Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjus

sasho [114]

Answer: I)Accrued ReVenue /Service Revenue.

2.-Prepaid Expenses/ Insurance Expenses

3.No Entry

4.Prepaid expenses /depreciation expense

5.Accrued Interest payable/Interest Expenses

6.Accrued expenses/ Interest expenses.

7.Unearned expenses/ Service Revenue

Explanation:The type of adjusting entry/ the related account in the adjusting entry is given below

a)For Accounts Receivable---Accrued ReVenue /Service Revenue.

(b) For Prepaid Insurance---Prepaid Expenses/ Insurance Expenses

(c) Equipment ---- Equipment Exoenses. Equipment is a long-term asset that will not last so the cost of equipment is recorded in the account Equipment. No entry is needed in this account.

(d) For Accumulated Depreciation Equipment-----Prepaid expenses /depreciation expense

e) Notes Payable : Accrued Interest payable/ Interest Expenses

(f) Interest Payable--- Accrued expenses/ Interest expenses

(g) Unearned Service Revenue--Unearned expenses/ Service Revenue

7 0

4 years ago

On January 1, 2019 Miller Corporation had retained earnings of $8,000,000. During 2019, Miller reported net income of $1,500,000

Stels [109]

Answer:

$9,000,000

Explanation:

As we know, in preparing accounts, the following steps are considered:

From all the revenues earned, all the expenses are deducted, and then we get net revenues.

From such net revenues all the taxes are provided.

Then all the appropriation in the form of dividend is provided.

Firstly to preference and then to equity.

After that all the remaining earnings are added to retained earnings.

In the given instance,

Net Income - Dividend = $1,500,000 - $500,000 = $1,000,000

Now this will be added to opening retained earnings.

Therefore, retained earnings balance at year end = $8,000,000 + $1,000,000

= $9,000,000

4 0

3 years ago