Loan Request: S15,000 for 1 year college tuition Capacity Annual household income. $10.000 salary Years working for current employer: 2 years Education some college Monthly debt payments. 30%. of monthly income Character FICO score: 550 Years living at current address 2 years Crminal record none Length of credit history 1 year using a major credit card Collateral Short-term financial assets: $500 in checking account plus $1,000 in savings Long-term financial assets $5,000 m certificate of deposit account Equity in home: None (renter) * Market value of other real assets: Old car ($1,500) 30. Giren an ndividual with the characteristics above evaluate how likely it is that this person will repav the loan m each of the three categories Give a rating of "lowW risk "medium risk, or high risk a Capacity: b Character Ĉ CollateraE 31 Which factorS suppert approving this ndividuall's loan request?. 32. Which factors support denying this individual's loan request2| 33. Would you approve or deny this person s loan request? 34. Explain your decision.
Loan Request: S15,000 for 1 year college tuition Capacity Annual household income. $10.000 salary Years working for current employer: 2 years Education some college Monthly debt payments. 30%. of monthly income Character FICO score: 550 Years living at current address 2 years Crminal record none Length of credit history 1 year using a major credit card Collateral Short-term financial assets: $500 in checking account plus $1,000 in savings Long-term financial assets $5,000 m certificate of deposit account Equity in home: None (renter) * Market value of other real assets: Old car ($1,500) 30. Giren an ndividual with the characteristics above evaluate how likely it is that this person will repav the loan m each of the three categories Give a rating of "lowW risk "medium risk, or high risk a Capacity: b Character Ĉ CollateraE 31 Which factorS suppert approving this ndividuall's loan request?. 32. Which factors support denying this individual's loan request2| 33. Would you approve or deny this person s loan request? 34. Explain your decision.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 9RE: Dexter Construction Corporation is building a student condominium complex; it started construction...
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