Rachel Johnson has net monthly income of $3,325. She has a monthly auto loan payment of $385, a student loan payment of $210, and a credit card minimum payment of $70. What is her debt-payments-to-income ratio
Q: 3. The Wilder. Fund sells Class A shares with a front-end load of 5% and Class B Shares with a 12b-1…
A: Net Asset value for class of assets is determined by total of all cash and securities and funds net…
Q: Acme Corporation is going to buy a manufacturing system to produce its shaft couplings over six…
A: To determine which system Acme Corporation should purchase using the internal rate of return (IRR)…
Q: mine is for sale for $240,000. It is believed that the mine will produce a profit of $65,000 the…
A: The rate of return on the investment is the calculation that involved calculating the total…
Q: What is the value now of an annuity that pays $2,000 at the end of each of the next 50 years…
A: Value of annuity is that amount which is invested by the investor and against which investor will…
Q: An all-equity company decides to recapitalize. The company has an unlevered beta of 1.1, the market…
A: Given: Beta 1.1 Market risk premium 6% Risk free rate 5% Tax rate 25% Debt ratio 25%
Q: Discuss the basic principles of Income distribution in Islam b. Discuss why financial planning ia…
A: Fundamental Islamic values designed to advance social justice, equity, and welfare in society serve…
Q: h plc has estimated the potential cash flows that would arise if they were successful in taking over…
A: NPV is a capital budgeting tool to help in deciding whether the capital project should be accepted…
Q: Find the first payment and the interest portion of the first payment.
A: 4 / 4 To find the first payment (X) and the interest portion of the first payment, we can use…
Q: The Morrit Corporation has $510,000 of debt outstanding, and it pays an interest rate of 8%…
A: Time Interest Earned(TIE) Ratio measures Corporation's ability to meet its debt obligations from…
Q: The following bond list is from the business section of a financial newspaper on January 1, 2016.…
A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…
Q: (Related to Checkpoint 5.6) (Solving for) At what annual interest rate, compounded annually, would…
A: Future Value is that value which includes the interest earned and initial invested amount. It is…
Q: You earn $17.50/hr and work 40 hr/wk. Your deductions are FICA (7.65%), federal tax withholding…
A: Emergency fund refers to the amount of cash that is kept aside as a reserve for the expenses that…
Q: Refer to the stock options on Microsoft in the Figure 2.10. Suppose you buy a November expiration…
A: The option represents a financial derivative that provides the right to buy or sell the underlying…
Q: Advantages of mutual funds include Odiversification. professional management. Ⓒliquidity. (All of…
A: Introduction: Mutual fund-It is a type of investment that pools funds from investors and invests…
Q: An all-equity company decides to recapitalize. The company has an unlevered beta of 1.1, the market…
A: Here, Beta 1.1 Market risk premium 6% Risk free rate 5% Tax rate 25% Debt ratio 25%
Q: For this assignment, discuss how the finance function is interrelated and connected to the other…
A: A company's finance department is in charge of overseeing the organization's finances and making…
Q: a_(n)=8-3n
A: The common difference in a sequence refers to the constant value by which each term in the sequence…
Q: The Flashtic Co. sells a special type of flashlights which does not use dry-cell batteries but…
A: Formulas are as shown below. Breakeven point=Fixed cost+Interest expensePrice per unit-Variable…
Q: Nast Inc. is considering Projects S and L, whose cash flows are shown below. These projects are…
A: The NPV refers to the capital budgeting technique for finding the profitability of the project by…
Q: Dr. Doe has been contributing $5,250 to her savings account twice a year every year for 22 years.…
A: Annuity is a series of equal cash flow payment at equal interval for a specified period of time.…
Q: Finance part b only : Prepare a schedule of cash payments on accounts payable for each month and…
A: Data given: Cash payment schedule CASH PAYMENT Budgeted Purchase July Aug Sept June…
Q: Wilma borrows $10,000 from "Jaw Breaker Joe" and promises to repay Joe a total of $10,500 in one…
A: Present Value = pv = $10,000 Future value = fv = $10,500 Time = t = 1 / 12
Q: The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a.…
A: Risk-free rate = 6% Return on market portfolio = 13% Beta = 1.25 Calculate the required rate of…
Q: An investor has $1000 initial wealth for investment and he borrows another $1000 at the risk free…
A: Beta coefficient measures the amount of systematic risk of an investment.
Q: QS 26-23 (Algo) Internal rate of return LO P4 Perez Company is considering an investment of $21,530…
A: Internal rate of return is the modern method of capital budgeting that is used to determine the…
Q: ULTIPLE CHOICE. Answer the following: 1.It show how efficient the business is as to its purchase or…
A: Ratios are very important in the comparing the performance of company with other similar companies…
Q: Green Foods currently has $500,000 of equity and is planning an $200,000 expansion to meet…
A: The net income refers to the actual profit that the company makes after it has paid all its…
Q: You pay $4,000 for a security that you expect will be worth $30,000 exactly 8 years from now. The…
A: An investment's average rate of growth or fall over a given time period, usually one year, is…
Q: value of one share of this stock if the required rate of return is 15.5 percent?
A: To calculate the current value of one share of the stock, we can use the dividend discount model…
Q: Annual returns for three funds and a market index are given below: Fund A Rp 17.1 Op 28.1 Beta (Bp)…
A: A portfolio is a basket or a group of individual assets or securities. Portfolio Management is…
Q: the nominal discount rate convertible monthly that corresponds to a nominal interest rate of 4%…
A: To determine the nominal discount rate convertible monthly that corresponds to a nominal…
Q: Sub : Finance Pls answer very fast.I ll upvote. Thank You Bobbie has $6,000 that she wants to…
A: The idea of the time value of money (TVM) holds that a quantity of money is now greater than it will…
Q: Free Cash Flow method Needed for this what is the total value? How did you get there (Sales numbers…
A: Free cash flow fund is used to evaluate value of company or firm Free cash flow= Net operating…
Q: annuity of the most profitable project
A: As per Bartleby guidelines if there are two questions only the first has to be answered cashflow…
Q: Zack Pallos receives $21,132 annually, Since he is paid monthly, how much does he receive each…
A: Annual Amount = a = $21,132 Number of Months in a year = n = 12
Q: The current spot exchange rate equals DDD1 = $3.4567. The risk-free rate in DreamLand is 3%, and it…
A: To evaluate the investment project in DreamLand, we need to calculate the net present value (NPV)…
Q: TSLA stock price is currently at $600. The $700-strike European TSLA call option expiring on March…
A: To compute the Black-Scholes delta of a put option, we can use the put-call parity relationship and…
Q: A preferred stock pays a 3% dividend yield on a redemption value of $40, what is its value using a…
A: Dividend Yield = 3% Redemption value = $40 Cost of equity = 2.5%
Q: The Fizzy Beverage Co. is considering two alternative capital projects. Project 1: expansion of its…
A: NPV represents the amount of profitability in absolute terms generated by a project or an…
Q: You take a small business (SBA) loan for $90,000. The current annual interest rate on SBA loans is…
A: Loan Amount = a = $90,000 Interest rate = 6%
Q: An all-equity company decides to recapitalize. The company has an unlevered beta of 1.1, the market…
A: unlevered beta = ub = 1.1 Market risk Premium = mrp = 6% Risk free rate = rf = 5% Tax rate = t =…
Q: Hansi is promised to receive $89 in 9 years. Hansi, being profligate, prefers to spend this promised…
A: Future value = fv = $89 Time = t = 9 years Interest rate = r = 6%
Q: The management of the BST Inn estimated that they can generate $182,000 an- $190,000 in room…
A: The Management of the BST inn estimated that they can generate $182,000 and $190,000 in room revenue…
Q: An S corporation earns $6.30 per share before taxes. The corporate tax rate is 35%, the personal tax…
A: In S corporation the income is directly transferred to the shareholders of the company and there is…
Q: Sub : Finance Pls answer very fast.I ll upvote. Thank You Bobbie has $6,000 that she wants to…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: Laura wants to buy a delivery truck. The truck costs $142,000 , and will allow her to increase her…
A: Net present value refers to the method of capital budgeting used for evaluating the viability of the…
Q: TikTok is considering a project that will cost $ 800,000 and is expected to last for 10 years and…
A: The internal rate of return the rate of return which generated by project and it is calculated on…
Q: Margo borrows $400, agreeing to pay it back with 8% annual interest after 17 months. How much…
A: We need to use simple interest formula to calculate interest to be paid by Margo. Interest =…
Q: The price of a non-dividend paying stock is now $40. Over each of the next two three-month periods…
A: The binomial options pricing model refers to the technique of calculating prices of the derivative…
Q: following a. The IRR is the discount rate that equates the present value of a project's expected…
A: IRR internal rate of return is minimum break even rate at which cost of capital equal to rate of…
Rachel Johnson has net monthly income of $3,325. She has a monthly auto loan payment of $385, a student loan payment of $210, and a credit card minimum payment of $70. What is her debt-payments-to-income ratio?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Jacque's total monthly loan payments are 1020 while her gross income is 3939 per month. What is her debt service ratio?Natalia has a monthly net income of $1,400. She has a house payment of $600 per month, a car loan with payments of $300 per month, a Visa card with payments of $60 per month, and a credit card with a local department store with payments of $32 per month. What is Natalia’s debt payment-to-income ratio? Is she within range of what experts suggest you spend on consumer credit payments?Mike and Teresa have a monthly gross income of $6,167, but they pay $502 per month in taxes. They also pay $2,974 per month in various loan payments. What is their debt service ratio? (Keep 2 decimal places)
- Chris and Karen have a combined take-home income of $5,000. Their total monthly payments on consumer debt are $875. What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?Louise Mclntyre's monthly gross income is $3,100. Her employer withholds $780 in federal, state, and local income taxes and $330 in Social Security taxes per month. Louise contributes $180 each month for her IRA. Her monthly credit payments for VISA and MasterCard are $105 and $100, respectively. Her monthly payment on an automobile loan is $335. a. What is Louise's debt payments-to-income ratio?Louise's monthly gross income is $2, 300. Her employer withholds $460 in federal, state, and local income taxes and $184 in Social Security taxes per month. Louise contributes $92 per month for her IRA. Her monthly credit payments for Visa, MasterCard, and Discover cards are $43, $33, and $20, respectively. Her monthly payment on an automobile loan is $353. What is Louise's debt payments to income ratio?
- Carlos earns a gross income of $5,580 per month and applies for a mortgage with a monthly PITI of $1,227.60. Carlos has other financial obligations totaling $887.22 per month. If the lending ratio guidelines are as given in the table below.Katherine Hunt is evaluating her debt safety ratio. Her monthly take-home pay is $3,160. Each month, she pays $350 for an auto loan, $90 on a personal line of credit, $80 on a department store charge card, and $105 on her bank credit card. Complete Worksheet 6.1 by listing Katherine's outstanding debts, and then calculate her debt safety ratio. Round the answer to 1 decimal place. Enter debt safety ratio as a percentage. % Given her current take-home pay, what is the maximum amount of monthly debt payments that Katherine can have if she wants her debt safety ratio to be 12.5 percent? Round the answer to the nearest dollar. $ Given her current monthly debt payment load, what would Katherine's take-home pay have to be if she wanted a 12.5 percent debt safety ratio? Round the answer to the nearest dollar. $Raya Mancillas has determined that her net worth is $54,000, excluding her home. She owes $78,000 on her mortgage and $15,000 on a car loan. What is Raya's debt-to-equity ratio?
- Alyssa Clark is evaluating her debt safety ratio. Her monthlytake- home pay is $3,320. Each month, she pays $380 for an auto loan, $120 on a personal line of credit, $60 on a department store charge card, and $85 on her bank credit card. Complete Worksheet 6.1 by listing Alyssa’s outstanding debts, and then calculate her debt safety ratio. Given her current take-home pay, what is the maximum amount of monthly debt payments that Alyssa can have if she wants her debt safety ratio to be 12.5 percent? Given her current monthly debt payment load, what would Alyssa’s take-home pay have to be if she wanted a 12.5 percent debt safety ratio?Chloe Young is evaluating her debt safety ratio. Her monthly take-home pay is $3,320. Each month, she pays $380 for an auto loan, $120 ona personal line of credit, $60 on a department store charge card, and $85 on her bank credit card. Complete Worksheet 6.1 by listing Chloe’s outstanding debts, and then calculate her debt safety ratio. Given her current take-home pay, what is the maximum amount of monthly debtpayments that Chloe can have if she wants her debt safety ratio to be 12.5 percent? Given her current monthly debt payment load, what would Chloe’s take-home pay have to be if she wanted a 12.5 percent debt safety ratio?Ed and Marta are paid $4,130 after taxes every month. Monthly expenses include $1,397 on housing and utilities, $674 for auto loans, $216 on food, and an average of $1,246 on clothing and other variable expenses. Calculate and interpret their savings ratio. The amount of Ed and Marta's income available for savings and investment is $?. Round to the nearest dollar.