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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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
A man uses a loan program for small businesses to obtain a loan to help expand his vending machine business. The man borrows $25,000 for 2 years with a simple interest rate of 1.3%. Determine the amount of money the man must repay after 2 years.
The information and answer is given in the images. I just need to know how they calculated imputed interest on housing loan 170. Just need to know the steps. Thanks
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…
Kindly solve it completely& correctly. Also, please provide your own solution. Thanks. 5. Ahmed bought a Machinery for RO46500. He made a down payment of RO15000and paid RO500 monthly for 65 months. i. Compute the total amount financed by Ahmed? ii. Compute the finance Charged to Ahmed? iii. Compute the deferred payment price paid by Ahmed?
Austin is taking out an amortized loan for $94,000 to open a small business and is deciding between the offers from two lenders. He wants to know which one would be the better deal over the life of the small business 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 bank has offered him a 10-year small business loan at an annual interest rate of 11.3%. Find the monthly payment. (b) An online lending company has offered him a 8-year small business loan at an annual interest rate of 14.2%. Find the monthly payment. re) Suppose Austin pavs the monthly pavment each month for the full t 2021 Continue %23 & 2 3 7.
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?

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