Pls help ASAP for both Olivia, a mortgage broker, has a client, Grayson, who meets all of the requirementsfor approval by Olivia's private lender. Joe. Joe has had issues with borrowersmissing payments in the past, and has decided to charge NSF fees of $300, acondition that is much higher than normal. However Joe also offers lower ratesthan Olivia's other investors. Since Grayson has very good credit and debt servicingratios, would this be a good option for Grayson?Select one:a. Yes, the lower rate offered by Joe will offset the higher NSF feeb. Yes, the lower rate combined with low risk of missed payments makes thisa good option for Graysonc. No, the NSF fee is much too high and is therefore not reasonable forGraysond. No, Grayson is at risk of missing payments and therefore this is notadvisable Elona, a mortgage broker, has a client, Emma, who wishes to pay off some debtsand back taxes to the CRA, which is threatening her with immediate collections.Emma, who has a first mortgage with CIBC that will come up for renewal in ninemonths, has great credit, lots of income and forty percent equity in her home. Shewants to increase her first mortgage with CIBC to consolidate her debts and pay offthe CRA, but CIBC told her that as long as she had outstanding back taxes, theywould not increase her mortgage. Elona has a solution. Elona's private lender.Laszlo, is looking for a mortgage in which to invest. Laszlo is fine getting repaid upto 25% of his investment during the term but is insistent that any mortgage he doesis for a one year term with a prepayment penalty of 3 months. Out of the followingoptions which one meets the needs of both Emma and Laszlo?Select one:a. Pay off CRA and consolidate her debts using Laszlo's mortgage, then pay offLaszlo's mortgage by refinancing the CIBC mortgage at renewalb. Pay off CRA using Laszlo's mortgage with a postponement clause, thenrefinance with CIBC to consolidate her debts, borrowing enough to pay offLaszlo at the end of his termc. Laszlo's mortgage won't help Emma; Emma should wait until the CIBCmortgage comes up for renewal in nine monthsd. Pay off CRA using Laszlo's mortgage with a postponement clause, thenrefinance with CIBC to consolidate her debts

Financial planning is an exhaustive cycle that includes evaluating a person's or an association's…

Answered: Olivia, a mortgage broker, has a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 36P

See similar textbooks

Similar questions

CASE: The Chipotle Mexican Grill In 1993, Steve Ells opened a burrito-and-taco restaurant in a Denver storefront, not far from the University of Denver campus and popular with students. He named it Chipotle Mexican Grill, after the dried pepper common in Mexican cooking. A trained chef and and graduate of the Culinary Institute of America, Steve's idea was for Chipotle to be a cash cow to help him finance a "real" upscale restaurant. Chipotle, however, began branching out: first to several locations in an around Denver, then eventually nationwide. In 1998, McDonald's bought a 91% stake in Chipotle, this was followed by a 2006 initial public offering in which McDonald's retained 69% of the stock and 88% of voting rights. By the end of 2005, there were about 500 Chipotle outlets generating approximately $600 million in sales annually. Currently, about 15,000 people are employed by Chipotle. Steve Ells still serves as the chairman and CEO. What accounts for the success? For…
Amy is caring for her aging mother, Milly. Milly has a number of health issues. She has given Amy a power of attorney so that Amy can help pay her bills and handle her business affairs. Amy is concerned that Milly will eventually use up all her assets, including losing her house, to provide for her health care needs. To protect against that eventuality, Amy intends to use her power of attorney to put Milly’s house into Amy’s name. True or False: Amy’s transfer of the house is a breach of her fiduciary duty as Milly’s agent.
Letty is 17 years old. She just got her driver's license and is excited to buy her first car. She sees an ad on Craig's List for a 2010 Shelby GT500 for sale that peeks her interest. It is her favorite color, pink, in excellent condition with only 5,000 miles, and a convertible just like she wants. She calls the seller, Dominic, and tells him she wants to buy it. Dominic tells Letty the car is $30,000 and gives her his address so she can pick up the car and bring him the money. The next day Letty brings Dominic a check and drives the car home. Dominic was so excited about selling the car that before Letty arrived he decided to celebrate and drank 6 tequila shots and 3 beers. Dominic is quite a character, he loves to party and drinks almost every day. He's also somewhat of a daredevil and many of his friends describe him as fun but a little crazy. On his Facebook page he brags about how crazy he is. Three months later, Letty turns 18. She and her friends celebrate her birthday by going…
The Chipotle Mexican Grill In 1993, Steve Ells opened a burrito-and-taco restaurant in a Denver storefront, not far from the University of Denver campus and popular with students. He named it Chipotle Mexican Grill, after the dried pepper common in Mexican cooking. A trained chef and and graduate of the Culinary Institute of America, Steve's idea was for Chipotle to be a cash cow to help him finance a "real" upscale restaurant. Chipotle, however, began branching out: first to several locations in an around Denver, then eventually nationwide. In 1998, McDonald's bought a 91% stake in Chipotle, this was followed by a 2006 initial public offering in which McDonald's retained 69% of the stock and 88% of voting rights. By the end of 2005, there were about 500 Chipotle outlets generating approximately $600 million in sales annually. Currently, about 15,000 people are employed by Chipotle. Steve Ells still serves as the chairman and CEO. What accounts for the success? For starters: a…
Mini Case Debt vs Equity Holders Companies obtain their funds from two sources: debt and equity. The providers of these funds are protected in different ways. Debt holders have specific contracts with the company, and if the company defaults, they have recourse ahead of shareholders. Shareholders are the bearers of residual risk and in return for the uncertainty this creates, equity finance is more expensive than debt finance – reflecting the risk premium and risk appetite of the shareholders. But, because the shareholders come last and it is not clear what they are entitled to, they operate in conditions of an incomplete contract. Question: If the shareholder’s position is not protected by a contract – unlike the provider of debt- how is it in fact made viable? Discuss
On January 1, 2020 Alan made an interest-free loan of $200,000 to his son who used the loan to buy a house. Alan’s son has made no payments on the loan during the year. What are the income and gift tax consequences if the applicable federal rate is 5% and if Alan’s son had no investment income during the year? Which of the following is eligible for the annual exclusion? 1. Frank designates his daughter, Holly, beneficiary of his 401(k) plan. 2. Frank designates his wife, Betty, as beneficiary of his life insurance policy. 3. Frank funds an irrevocable trust with $1,100,000 for the benefit of his son. The terms of the trust allows a payout at the discretion of the trustee. 4. Frank funds an irrevocable life insurance trust with the amount necessary to pay the premiums of the policy. The beneficiaries can take a distribution equal to the contribution each year.
Michael built a calculator (which graphs) using plans Michael found posted on the internet, but he unreasonably didn’t follow the plans when he constructed the calculator. Michael then sold the calculator to Jack who was injured when the calculator exploded because it hadn’t been built according to the plans. After the explosion Jack was taken to the Hospital emergency room (“ER”) where he signed a consent form authorizing Dr. Joe, the ER doctor, to perform a surgical procedure called Surgery X. But, instead Dr. Joe performed Surgery Y, a different procedure than Surgery X. A. What cause(s) of action should Jack use if he sues Michael for Jack’s injuries. Discuss. B. Has Joe, the ER doctor, committed any intentional torts? If so, discuss.
The law allows companies in various industries to add what manyrefer to as “hidden” charges to customers’ bills. Phone bills, airlinetickets, and hotel receipts often contain charges that are difficultto identify. A traveler who stays in a hotel might be hit with a hospitality fee, a resort fee, or an automatic gratuity, to name just afew. These charges are not taxes, and although they are itemized,it is difficult for the average traveler to make sense of them. Mostpeople either don’t check their bills thoroughly or are in a hurryto check out and don’t bother to dispute the charges, which maybe only a few dollars. But these charges add up over the course ofhundreds or thousands of visitors each year, and hotels are pocketing them—legitimately.281. Do you think adding hidden charges to hotel bills is a smartmarketing strategy? Why or why not?2. Visit the website of a hotel chain with which you are familiar tolearn if it gives any information about additional surcharges.If consumers were…
Solenn and Nico Bolzico, both graduate students, moved into an apartment near the university. Solenn wants to buy renter's insurance, but Nico thinks they don't need it because their furniture isn't worth much. Solenn points out that, among other things, they have some expensive computer and stereo equipment. To help the Bolzicos resolve their dilemma, suggest a plan for deciding how much insurance to buy, and give them some ideas for finding a policy.
Having recently made a fortune by inventing and selling a new piece of software, Matt heardthat his friend, Lois, was having a hard time obtaining a bank loan. Matt therefore generously promised the bank that he would be responsible for the debt if Lois failed to repay a loan. That promise will be enforceable against Matt if A) he provides a notarized copy to the bank B) Lois repeats Matt's promise in a document that she signed. C) either Lois or the bank provides some positive benefit to Matt personally D) the promise is contained in a document that Lois and the bank signed. E) he provides it to the bank in a signed document.

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS