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Mila [183]
2 years ago
7

Buying a Vacation Home

Business
1 answer:
Liono4ka [1.6K]2 years ago
4 0

The debt to income ratio is 86 percent. This is high so the family should not buy a house.

<h3>The total debt that is owed by this family </h3>

First mortgage = $43,000

Outstanding debts = $12,200

Car loan =  $13,700

Second mortgage =$25,700

The total debt that this family is owing is given as

$43,000+ $12,200+$13,700+$25,700

= 94600 dollars

The total income that this family makes is given as $110,000.

The debt to income ratio would be

94600/$110,000.

= 0.86

Therefore the debt to income ratio that this family has is 86%.

Given that their debt to income ratio is high, it is advisable that the family has to stay away from purchasing a new house.

Read more on debt and income ratio here:brainly.com/question/24814852

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The purchase price and all costs to bring an asset to its desired condition and location for use should be ________.
Nana76 [90]

Answer:

b. capitalized

Explanation:

The purchase price and all costs to bring an asset to its desired condition and location for use should be capitalized.

3 0
2 years ago
Whistle Stop pays a constant annual dividend of $4 on its stock. The company will maintain this dividend for the next 3 years an
Hitman42 [59]

Answer:

P0 = $9.04279 rounded off to $9.04

Option c is the correct answer

Explanation:

Using the the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we will use the following formula,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  D3 / (1+r)^3

Where,

  • r is the required rate of return

P0 = 4 / (1+0.156)  +  4 / (1+0.156)^2  +  4 / (1+0.156)^3

P0 = $9.04279 rounded off to $9.04

3 0
3 years ago
This year Erie achieved an ROE of 23.9%. Suppose the Board of Directors of Erie mandates that management take measures to increa
allochka39001 [22]

Answer:

c. Erie s ROE will remain the same

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As the return on asset is calcualte using the asset figure it will not change with a financial leverage measurement.

As the financial leverage acts in the composition of other side of the accounting (assets = liabilitis + equity) it will change the return on equity, the debt ratio and other metric related to this side but, not the return on assets.

8 0
3 years ago
Productivity is a measure of:
Crazy boy [7]

I think the answer you're looking for is 'D' if you're asking what productivity is in a generalized sense.

5 0
2 years ago
Bear Tracks, Inc., has current assets of $2,280, net fixed assets of $10,400, current liabilities of $1,405, and long-term debt
Vera_Pavlovna [14]

Answer: $7185

Explanation: Shareholders equity refers to the amount of funds that are collected by the company by selling their ownership rights in the market to the general investors.

As per the subject matter of accounts, every asset that is owned by an organisation is either financed by the available funds or some liability is taken to buy it. This could be illustrated as follows :-

assets =  shareholders equity + liabilities

Putting the values into equation we get :-

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therefore :-

shareholders equity = $7185

6 0
3 years ago
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