Answer:
Mary can deduct $1,300 in year 1 for her points paid.
Explanation:
a) Data and Calculations:
April 1, Amount borrowed by Mary to refinance the original mortgage on her principal residence = $130,000
Payment of 1 points to reduce Mary's interest rate from 7% to 6% amounts to 1% of $130,000 = $1,300.
b) Mary paying 1 points is beneficial to her since her interest cost is reduced from 7% to 6%. This implies that her total finance cost at the end of the 30-year period will be reduced.
Answer:
0.73
Explanation:
Debt to equity ratio is calculated as Total debt / Total equity
= $0.8 million / $1.1 million
= 0.73
Therefore, debt to equity ratio is 0.73
Answer:
NAFTA
Explanation:
NAFTA stands for the North American Free Trade Agreement and it represents a standing treaty between Mexico, Canada and the United States and it is recognized as the largest free trade treaty in the world.
NAFTA's treaty makes it possible for Electra Bikes which is an American brand to expand its business to Mexico and Canada. NAFTA as a treaty facilitates this expansion because the treaty has removed the trade barriers that existed among the three nations.
Answer: Expectancy Theory
Explanation: Expectancy theory formulates that a person will conduct oneself in a specific manner as he or she is motivated to choose a particular behavior over others because of what they regard the outcome of the behavior that is selected as likely to be.
Here, the management of McCloud Corp utilizes the expectancy theory to make the workers develop the quality of their work and put in extra effort to the work . However, this theory is aimed at giving rewards to workers who earned them and also chose to get rewarded as they are chosen by their performance. The inspiration for the behavior preference is deduced by how appealing the result is.
Answer:
Bounded rationality.
Explanation:
Bounded rationality is the possibility that in decision-making, rationality of people is restricted by the data they have, the subjective impediments of their psyches, and the limited measure of time they need to settle on a decision.