Robert Sampson owns a townhouse valued at $191,000 and still has an unpaid mortgage of $156,000. In addition to his mortgage, he has the following liabilities: Visa MasterCard Discover card Education loan Personal bank loan Auto loan Total $ 785 440 585 3,100 500 5,500 $ 10,910 Robert's net worth (not including his home) is about $45,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. a. What is Robert's debt-to-equity ratio? (Round your answer to 2 decimal places.) Debt-to-equity ratio

Robert Sampson owns a townhouse valued at $191,000 and still has an unpaid mortgage of $156,000. In addition to his mortgage, he has the following liabilities: Visa MasterCard Discover card Education loan Personal bank loan Auto loan Total $ 785 440 585 3,100 500 5,500 $ 10,910 Robert's net worth (not including his home) is about $45,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. a. What is Robert's debt-to-equity ratio? (Round your answer to 2 decimal places.) Debt-to-equity ratio

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Ronald and Samantha Brady recently had their condominium in Port Isaac appraised for $324,800. The balance on their existing first mortgage is $154,720. If their bank is willing to loan up to 75% of the appraised value, what is the amount (in $) of credit available to the Bradys on a home equity line of credit? $
Ransford and Alda Mariano own a home recently appraised for $422,500. The balance on their existing mortgage is $113,087. If their bank is willing to loan up to 80% of the appraised value, what is the amount of credit available to them (in $)? $ ______ Answer is not 338,000 or 224,911
Array intends to allocate her savings into various types of financial investments. She has $194,400 to invest in stocks, bonds, and mutual funds according to her chosen respectively. How much should she invest in each type of investment? Round your answers to the nearest dollar. 4 1 7 ratio : 3 9 11 Stocks: $ Bonds: $ • Mutual Funds: $
Sue has $50,000 in her checking account at Small Bank and $150,000 in a savings account at Big Bank. What is the total amount of FDIC insurance she has on these two accounts?
Nelson has been working for few years and earnings $42,000 per annum. He would like to save some of his money for his wedding. He has shortlisted his choices to the following fixed deposits: i) Maybank Fixed Deposit (interest rate for 12months: 1.85%, 36months: 1.90%) ii) Public Bank eFixed Deposit (interest rate for 12months: 1.85%, 36months: 1.85%) You are required to calculate his fixed deposits account balance as at 31 December 2023 in both banks and state your recommendation with justification based on the following conditions: a) he deposits $5,000 on 1 January 2021 and hold for three years until 31 December 2023. b) he deposits $2,500 on 1 January 2021 and 1 January 2022. c) he deposits $1,000 on 1 January 2021, $1,500 on 1 January 2022 and $2,500 on 1 January 2023. Note: You are required to calculate the amount in his account after three years based on the above chosen banks latest interest rate
Sean expects to receive $300,000 in 5 years from a trust fund. If a bank loans money at an interest rate of 8.2%, how much money can he borrow from the bank on the basis of this information?
Problem: You are a mortgage broker at your local bank. Your cousin submitted an application for a mortgage with a monthly PITI of $1,319. His financial other obligations total $744.50. Your cousin earns a gross income of $5,005. (a) What is your cousin's expense ratio? (b) What is his total obligations ratio? (c) According to the Lending Ratio Guidelines in your textbook (Chapter 14, section II), for type of mortgage would Bool qualify, if any? Explain. (d) If your cousin decided to get a part-time job so he can qualify for conventional mortgage, how much additional monthly income would he need? (Set up an equation and solve it.)
Anthony has a Visa card with a $33,500 limit, a MasterCard with a $22,000 limit, a Chase Card with a limit of $17,000 and a Discover card with a $37,500 limit. Anthony has accumulated the following balances on his credit cards: Visa card: $19,299, MasterCard: $19,952 Chase card: $2,000 Discover card: $3,886 What is Anthony’s debt-to-credit ratio?
Mr. and Mrs. Murthy have a totally monthly gross income of $6000.00. They are interested in purchasing a house with a mortgage payment of $1300.00 per month, annual heating costs of $2100.00, and annual property taxes of $3675.00. Calculate the gross debt service ratio (GDSR). Determine if a bank is likely to offer them the mortgage. Justify your answer.
Dina loans $24,000 to her daughter Erin and does not charge any interest. Erin has investment income of $1,400 and investment expenses of $300. Assume that the applicable federal rate is 5%. How much interest must be imputed on the loan? 1. $1,000. 2. $1,100. 3. $1,200. 4. $1,400. Ⓒ$1,100. $1,200. $1,400. $1,000.
Theo just financed a new car through his credit union. His car loan requires payments of $420 a month for five years. Assuming that all payments are paid timely, his last payment will pay off the car loan in full. Theo has a(n): Group of answer choices interest-only loan. amortized loan. pure discount loan. perpetuity loan. lump sum loan.
Jennifer has the transactions below, what is the combined impact on her net worth when considering all of the transactions? She purchases $5,000 worth of a mutual fund with cash from her savings account. She spends $6,000 on a two-week vacation to Italy using funds in her money market account. She purchases $10,000 worth of furniture for her house and uses her credit card to finance the purchase. A. $21,000 decrease in net worth B. $6,000 decrease in net worth C. $15,000 increase in net worth D. $6,000 increase in net worth

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