Answer:
D: $259,000
Explanation:
The computation of the paying amount which borrower can pay for a property is shown below:
= Mortgage loan amount for borrow ÷ loan-to-value ratio
= $220,000 ÷ 85%
= $258,823.53
= $259,000 round off
We simply divide the mortgage loan by the loan to value ratio so that paying amount could arrive which borrower can pay for a property.
(a)As per Du-Pont equation:
Return on Assets (ROA) = Net profit margin * Total assets turnover
9.8% = 12.25% * total asset turnover
Total asset turnover = 0.098/0.1225 =0.8
Total asset turnover = 0.80
(b) As per Du-Pont equation:
ROE = Net profit margin * total asset turnover 8 * Equity Multiplier
18.25% = 12.25%*0.8* Equity Multiplier
Equity multiplier = 0.1825/(0.1225*0.8) = 1.86
Equity multiplier = 1.86 times
Answer:
C. Is research, and so requires either an authorization or meeting one of the criteria for a waiver of authorization
