Review the following scenario. Identify how much each lienholder would receive. Mrs. Smith takes out a $450,000 mortgage loan to construct her home. Unfortunately she loses her job and defaults on her payments, leading the lender to foreclose on her house. The lender only receives $375,000 at the foreclosure option. (Enter answers using exactly this format "$x,xxx.xx") $350,000 filed by mortgage lender in 2016 $20,000 filed by Court for lawsuit in 2012 $15,000 filed in 2018 for property taxes $10,000 filed by a contractor in 2014
Q: delta corporation obtained a $45,000 loan at a rate of prime +1.15% on July 18. Fixed payments of…
A: Loan analysis involves evaluating a borrower's financial situation to determine their…
Q: For an APR of 15% per year, if the interest is compounded weekly, determine the nominal rate per (a)…
A: The nominal interest rate represents the stated rate of interest on a financial product before…
Q: B Bhupatbhai
A: The objective of the question is to calculate the value of Lauryn's Doll Co. using the Free Cash…
Q: Non-constant growth problem: the expected dividends in years 1, 2 and 3 are 3, 4 and 5.50. After…
A: Expected dividend year 1=3Expected year 2 dividend=4Expected year 3 dividend=5.5Required…
Q: You have taken out a 60-month, $22,000 car loan with an APR of 4%, compounded monthly. The monthly…
A: The amount that goes towards principal is $331.83The amount that goes towards interest is…
Q: A firm lost $706,000 in one year. The firm's beginning retained earnings balance was $1,450,800 and…
A: Net loss = -706,000 (loss is indicated by a minus sign)Ending retained earnings = 120,000Beginning…
Q: Suppose that you are a speculator that anticipates an appreciation of the Singapore dollar (S$). You…
A: Drawing table for the calculation of Net Profit : Per unit Per contract Selling Price 0.92 23000…
Q: A project will cost $8,00, 000 initially, generate $ 80,000 (nominal) per year of cash flow for 10…
A: IRR is the break even rate of return at present value of cash flow is equal to initial investment of…
Q: 1) You are considering investing $1,900 in a complete portfolio. The complete portfolio is composed…
A: Expected return on T-bills = 3%Weight of X in P = 65%Weight of Y in P = 35%Expected return on X =…
Q: cecilia invested $5000 in an account four years ago. Today her account has a balance of $6200. Given…
A: Present value=$5000Future value=$6200Period= 4 yearsPeriod= 16 quarters
Q: John Long has just learned he has won a $508,300 prize in the lottery. The lottery has given him two…
A: The present value of money refers to the current worth of a future sum of money, taking into account…
Q: Answer B and C pls
A: Part A:The implied value of the ROE remains at 12% as it's based on the growth rate and expected…
Q: Spot price of silver is $26.36/oz and the quoted interest rate is 2.76% for 3 months. There are no…
A: Arbitrage results from different prices of the same asset in different markets. Many sellers take…
Q: Investment A requires you to pay $30,000 at t = 0 and you will receive $49, 000 after five years.…
A: Rate of return on investment (ROI) is a measure used to evaluate the efficiency of an investment or…
Q: Beginning three months from now, you want to be able to withdraw $2,700 each quarter from your bank…
A: Present value is a financial concept used to determine the current worth of a future sum of money,…
Q: A 5-year Treasury bond has a 4.25% yield. A 10-year Treasury bond yields 6%, and a 10-year corporate…
A: To calculate the yield on a 5-year corporate bond, we first need to determine the spread between the…
Q: The market consensus is that Analog Electronic Corporation has an ROE = 11% and a beta of 1.45 and…
A: Price per share: Current dividend * (1+growth rate) / (required return - dividend growth rate)…
Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…
A: Portfolio consists of a combination of the assets i..e stocks, bonds, etc which are managed by the…
Q: Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200…
A: The objective of the question is to calculate the weight of Abbott Labs in the portfolio. The weight…
Q: Malcolm Technology issued a new series of bonds on January 1, 1985. They were sold at par ($1,000)…
A: The price of the bond on December 31, 1995, when interest rates had risen to 12%, would be…
Q: Suppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the…
A: We invest in financial assets like stocks to get returns from our investments. The returns are…
Q: the first 12 periods and 3% for the following 16 periods. (A) Find the accumulated value of the…
A: The time value of money highlights the idea that money invested now will have a higher value than…
Q: A firm has the following accounts; sales = $1,190,000, cost of goods sold = $876,000, depreciation…
A: Sales = s = $1,190,000Cost of Goods Sold = cogs = $876,000Depreciation = d = $130,000Addition to…
Q: Meade Corporation bonds mature in 22 years and have a yield to maturity of 8.2 percent. The par…
A: Compound = Semiannually = 2Time = t = 22 * 2 = 44Yield to Maturity = r = 8.2 / 2 = 4.1%Face Value =…
Q: Calculate the cash payback period and net present value of the proposed investment. (If the net…
A: The cash payback period is the time it takes for an investment to produce enough cash flow to cover…
Q: Arts and Crafts, Incorporated will pay a dividend of $6 per share in 1 year. It sells at $50 a…
A: Expected dividend in one year (D1) = $6Current Stock Price (P0) = $50Required rate of return (r) =…
Q: Palmer Company purchased 90% of the outstanding common stock of Stevens Company on January 1, 2014…
A: Journal Entries : YearParticulars Debit ($) Credit ($) 2014Investment in Stevens Company…
Q: Granby Foods' (GF) balance sheet shows a total of $25 million long-term debt with a coupon rate of…
A: Weighted Average Cost of Capital (WACC):WACC represents a blended rate comprising the cost of both…
Q: Suppose you take a 3/1 interest - only, 30-year ARM for $140,000.00 with an interest - only contract…
A: The annual Percentage Rate is a measure of the total cost of borrowing money over a year, expressed…
Q: Your grandfather put some money in an account for you on the day you were born. You are now 16 years…
A: See below.Explanation:To solve this problem step by step, we can use the formula for compound…
Q: Question 2 Mad Cat Inc. is debating between two alternative earth moving machines to use for the…
A: The objective of the question is to determine which of the two earth moving machines, from Double…
Q: We project unit sales for a new household-use laser-guided cockroach search and destroy system as…
A: Net Present Value (NPV) is a financial measure used to analyze the profitability of an investment by…
Q: ntel recently issued semi-annual, 5.9% coupon Böh maturity for bonds like this is 2.6%. Assuming the…
A: Price / Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv],…
Q: An average stock has a required return of 12 percent, and the market risk prémium is 4 percent. If…
A: The expected return is used to determine the average result of an investment over a certain time…
Q: If a project requires a $1000 initial investment, it returns $500 at the end of the first year, $600…
A: The objective of this question is to calculate the Modified Internal Rate of Return (MIRR) for a…
Q: You have inherited money from a distant relative, and it will arrive in 4 separate deposits over the…
A: The concept of time value of money will be used here. We have to compute the future value here. A…
Q: Suppose you want to have $400,000 for retirement in 25 years. Your account earns 5% interest. Feel…
A: Retirement amount = $400,000Number of years = 25Interest rate = 5%To find: a) Monthly deposit, b)…
Q: Suppose that you are a currency speculator, based in the U.S., attempting to capitalize on a…
A: In total, after the futures contract you sold settles, you will have $139,360.00 from these…
Q: Task time estimates for the modification of an assembly line at Jim Goodale's Carbondale, Illinois,…
A: A Gantt chart of a project schedule, showing the start and end dates of each task as well as their…
Q: Consider the following information: Economy Recession Normal Boom Probability of State of Economy…
A: Stock returns are never constant. They vary depending on the state of economy. In times of recession…
Q: Choose the best answer to the following question. Explain your reasoning with one or more complete…
A: When we buy something we usually ask the price from the seller before making the purchase. The…
Q: Calculate the future value (in dollars) of $1,150 deposited into an account earning an annual simple…
A: Deposit = $1,150Interest rate = 6%Number of years = 3To find: The future value of the deposit after…
Q: Marston Co is a manufacturing company that wishes to evaluate an investment in new production…
A: Hence, the question has been solved in detailed explanation manner.Explanation:a) Calculating…
Q: A firm's debt to equity ratio is 2.3 and its total assets are $123.000,000. What is the shareholders…
A: Here,Total assets is $123,000,000Debt Equity ratio is 2.3
Q: The following graph shows the contingency graph for purchasers of euro put options, with a premium…
A: The graph illustrates the contingency graph for purchasers of euro put options with a premium of…
Q: You are thinking about investing $4,635 in your friend's landscaping business. Even though you know…
A: Present Value is the current price of future value which will be received in the near future at some…
Q: Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the…
A: Treasury Bills, sometimes known as T-bills, are short-term debt securities that the government…
Q: Whose cash flow is best described by the timeline shown below? Date (years) 0 1 2 3…
A: The objective of the question is to identify whose cash flow matches the given timeline. The…
Q: Your friend offered a chance to buy an asset for $5,000 that is expected to produce cash flows of…
A: The internal rate of return (IRR) is a financial metric used to estimate the potential profitability…
Q: TJ Industries has revenue of $400,000 and expenses of $250,000. The depreciation cost is $80,000 and…
A: The objective of the question is to calculate the cash flow from operations for TJ Industries given…
Step by step
Solved in 3 steps
- A couple sold their home. In addition to a cash down payment, they financed the remaining balance for the buyer. The loan will be paid off by monthly payments of $300 for 5 years. The couple decides to sell the loan to a local bank. The bank will buy the loan, based on 1% per month interest. How much will the bank pay the couple for the loan? Select one: O a. 35648.74 O b. 3397.40 O c. 13486.51 O d. 1456.03 O e. 31468.53A home owner defaults and he has three mortgages on the house. At the time of the default, the first lien has a balance of $100,000, the second lien has a balance of $200,000, the third lien has a balance of $350,000, and he also owes $5000 in property taxes. The recovery rate for the third lien holder equals 50%. The house price is sold for $ in the foreclosure auction.Problem: Your cousin and her partner have a combined gross income of $10,111 and monthly expenses totaling $3,205. They plan to buy a house with a mortgage whose monthly PITI will be $2,000. (a) If they do not qualify for an FHA mortgage, by how much should they reduce their monthly expenses in order to be eligible? (Set up an equation and solve it.)
- Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?Ivanna is taking out a mortgage for $165,000 to buy a new house and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the mortgage loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) A savings and loan association has offered her a 30 -year mortgage loan at an annual interest rate of 4.6% . Find the monthly payment. $ (b) An online lending company has offered her a 15 -year mortgage loan at an annual interest rate of 4.4% . Find the monthly payment. $ (c) Suppose Ivanna pays the monthly payment each month for the full term. Which lender's mortgage loan would have the lowest total amount to pay off, and by how much? Savings and loan association The total amount paid would be$less than to the online lending company. Online…Kayla Gordan plans to borrow $300,000 from ANZ bank to set up a Nail Salon.She currently has $10,000 in savings and she will use her house as security for the loan.Which of the following best represents a risk associated with this financing method? A.Kayla's proportion of business ownership will be diluted B.Interest payments are tax deductible C.Bank will repossess her house if she defaults on the loan D.Kayla is required to pay dividends to the bank
- Q1: Hansen bought his primary residence on 1/1/2010 for $400,000. He put $50,000 of his own money as the down payment, and borrowed $350,000 from a bank for the remainder of the purchase price. On 1/1/2021, he was laid off from his job, and he could not make his mortgage payments. On 3/30/2021, the bank foreclosed on the house, and took the house back from Hansen. On 3/30/2021, the house was worth $150,000, and he owed $300,000 to the bank. The bank sold the house for $150,000 which the bank used to pay off half of the $300,000 that Hansen owed. The bank forgave the remaining $150,000 that Hansen owed the bank, pursuant to the foreclosure. In 2021, how much taxable income does Hansen recognize from the bank forgiving the home loan to Hansen? a. $0 b.$150,000 c. $300,000 d. $400,000 Q2. Diamelle purchased a life insurance policy on her life, and named Eric, her husband, as the beneficiary. Diamelle paid $50,000 for the life insurance policy. Upon Diamelle’s death, the life insurance…Mary wants to buy a new car but needs money for the down payment. Her parents agree to lend her money at an annual rate of 5%, charged as simple interest. They lend her s7000 for 3 years. She makes no payments except the one at the end of that time. Answer the following questions. If necessary, refer to the list of financial formulas. (a) How much total interest will Mary have to pay? (b) What will the total repayment amount be (including interest)?based on the attached financials would you give this businss a loan. Mr. Richardson and take a $250,000 salary and his wife has $556,325. They have no debt and house worth 1.3M
- I. Pielago is in need of funds for the next 3 months. She badly needed P30,000,000 in cash because of an emergency. Pielago looked for the list of her family’s property and found a land which costs P50,000,000 and has a fair market value of P65,000,000. What do you think is the best money market security that suits Pielago’s case? II. If Pielago on the other hand is not a user of the fund but a surplus unit, what do you think is the most suitable money market security she must invest in, considering the fact that she has P55 Trillion excess funds.Rita borrows $2000 from her parents. She repays them $2600. What is the interest rate if she pays the $2600 at the end of (a) Year 2? (b) Year 3? (c) Year 6? (d) Year 10?Would Qualifying an Indorsement Be Ethical? Suppose you have taken a promissory note for $3,500 payable in 12 months with interest at 10 percent as payment for some carpentry work you did for a friend. You have some reason to believe the maker of the note is in financial difficulty and may not be able to pay the note when it is due. You discuss with an elderly neighbor the possibility of her buying the note from you as an investment, and she agrees to buy it from you for $3,000. Would it be ethical for you to indorse the note with a qualified indorsement ("without recourse")?