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IgorLugansk [536]
3 years ago
12

Mortgage lenders probably have the most interest in the ______ ratios. a. long-term debt and times interest earned b. return on

equity and price-earnings c. price-earnings and debt-equity d. market-to-book and times interest earned e. return on assets and profit margin
Business
2 answers:
kondor19780726 [428]3 years ago
8 0

Answer:

A) long-term debt and times interest earned

Explanation:

The long term debt ratio and the TIE ratio are used by mortgage companies to predict a client's ability to repay a long term loan.

  • The long term debt ratio measures the amount of total long term debt to the value of an individual's total assets (net worth). It is calculated by dividing total long term debt by total assets.
  • The times interest earned (TIE) ratio measures the long term solvency of a debtor. It is calculated by dividing the amount of income that can be used to pay debts by the total long term debts. E.g. a company's TIE = EBIT / interest expense, an individual's TIE = gross income / debt and interest expenses

shtirl [24]3 years ago
3 0

Answer:

A. Long-term debt and times interest earned

Explanation:

A Mortgage lender is an individual or an organization that loans money and take security interest in real property. The loan or money gotten from mortgage lenders are mainly used in purchasing real estate or for any purpose, while putting a lien on the property being mortgaged. Mortgage lenders most interest is in long term debts and times interest earned by long term mortgage rate is usually higher than short term and also secured the borrowers their payments and interest rates for a good period of time.

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