3. Dave's Guitar Shop is thinking about building an additional propertyonto the back of its existing building for more storage. Dave consults withhis banker about applying for a new loan. The bank asks for Dave's balanceto examine his overall debt levels. Dave's total assets is P5,000,000 whilehis total liabilities is P25,000. Compute Dave's debt ratio.

Debt Ratio :— It is calculated by dividing total debt or total liabilities by total assets.…

Answered: 3. Dave's Guitar Shop is thinking about…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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There are 2 types of residents in town. 20% are financially stable who can pay back the loan they borrow. 80% are financially unstable who are unable to pay back. A bank pays depositors an interst rate of r=5%. Calculate the loan interest rate that allows the bank to break-even (break-even means making 0 profit). R=______%. (If your answer is 500%, put 500 in the blank)
Ctenanthe Plant Co. borrows money to buy some new green houses. To do so, Ctenanthe borrows $750,000 in a 15-year fixed mortgage. To record the borrowing, Ctenanthe should. debit mortgage payable for $750,000 debit cash for $750,000 Ctenanthe dooes not need to record anything until the first payment is due, since thi is long-trm borrowing. credit cash for $750,000
Which is most likely to represent revolving debt? You took out $150k in loans to go to law school You have a personal business line of credit for a small online business you started You own an investment property in Tampa, FL and buy another one with 20% down A mortgage on your primary home in NYC
Please don't give image based answer..thanku
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You are working hard to pay off your debts. You had 3 $1,000 credit cards maxed out but just paid off one and closed it. Which factors are impacted? What could you have done instead? Show your calculations.
5. Kumal wants to sell her townhouse in Whitehorse. She will spend $2100 updating her home. She has $2100 in cash, but she plans to buy a $2100 RRSP. She will need 120 d to pay off any loan. Interest is compounded daily. a) Complete the chart. Option secured personal loan RRSP loan no loan credit card Detalle Buy the RRSP with $2100 cash. Pay for updating with the loan using her home equity as collateral. Pay for updating with the $2100. Buy an RRSP with an RRSP loan. Pay for updating with the $2100. Do not get an RRSP. Buy an RRSP with the $2100. Pay for updating with a credit card with a 30 d grace period. 1125 APR 2.75% 1.75% 0% 20.1% Total amount A-PH1+ 62 b) Which option should Kumal choose? Explain why. c) Which option should Kumal not choose? Explain why. d) Suppose Kumal uses a RRSP loan instead of her credit card. How much interest will she save? What is equity? What is it used for? Total Interest/A-P REFLECTING Suppose Kumal has a loan with simple interest nstead of compound…
Im struggling to to do this question. My main concern is part (c).
A few years down the road you have moved out, buying your own home. You decide to take another look at your finances. Your outstanding loan of $275 per month only has 8 payments left on it (out of the original 60) with an interest rate of 11.75%. a. What is the finance charge “f”? b. What is the unearned interest “u”? c. How much would it cost to pay it off on payment #53?
Please answer all three subparts and don't give handwritten answer ..thanku
A company lends money to small businesses. The total amount per project is $ 50,000. The borrowers can benefit for once from this deal. Mr. Roger applies for a loan, and gets $ 40,000 according to his business' conditions. He needs $ 60,000 for his project, so he finances the needed money from his own money. The interest rate applied by the company on the loans is 5%, and Mr. Roger wants to remunerate himself for 3% on his own participation. Find the capital structure for the project of Mr. Roger What is the average cost of capital for Mr. Roger (in %) If Mr. Roger can repay only $ 30,000 to the company, what would be the credit risk for the company?
Johnny Rockefeller had a bad credit rating and went to a local cash center. He took out a $100.00 loan payable in two weeks for $105.50. What is the percent of interest paid on this loan? (Do not round intermediate calculations. Round your answer to the nearest whole percent.) Percentage of interest paid %

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