Loan Request: S60,000 for a new Hyundai NEXO Fuel Cell SUV Сараcity Annual household income: Character Collateral FICO score: 720 $80,000 Years working for current employer: 10 years Education: College graduate Monthly debt payments. 10% of monthly income Short-term financial assets: S200 in checking account Long-term financial assets: S1,000 in savings account Equity in home: $20,000 Market value of other real assets: Cars and electronics S10,000 Years living at current address: 2 months Criminal record: 1 minor traffic violation Length of credit history: 6 years using a major credit card 25. Given an individual with the characteristics above, evaluate how likely it is that this person will repay the loan in each of the three categories. Give a rating of low risk, "medium risk," or "high risk." a. Сарacity: b. Character: Collateral: C.
Loan Request: S60,000 for a new Hyundai NEXO Fuel Cell SUV Сараcity Annual household income: Character Collateral FICO score: 720 $80,000 Years working for current employer: 10 years Education: College graduate Monthly debt payments. 10% of monthly income Short-term financial assets: S200 in checking account Long-term financial assets: S1,000 in savings account Equity in home: $20,000 Market value of other real assets: Cars and electronics S10,000 Years living at current address: 2 months Criminal record: 1 minor traffic violation Length of credit history: 6 years using a major credit card 25. Given an individual with the characteristics above, evaluate how likely it is that this person will repay the loan in each of the three categories. Give a rating of low risk, "medium risk," or "high risk." a. Сарacity: b. Character: Collateral: C.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Part III: Can they get a loan?
Directions Use the information below to assess the capacity, character, and collateral of a potential
borrower and then answer the questions.
Loan Request: $60,000 for a new Hyundai NEXO Fuel Cell SUV
Сараcity
Annual household income:
S80,000
Years working for current
employer: 10 years
Education: College graduate
Monthly debt payments: 10%
of monthly income
Character
Collateral
Short-term financial assets:
$200 in checking account
Long-term financial assets:
S1.000 in savings account
Equity in home: $20,000
Market value of other real
assets: Cars and electronics
S10,000
FICO score: 720
Years living at current
address: 2 months
Criminal record: 1 minor
traffic violation
Length of credit hıstory: 6
years using a major credit
card
25. Given an individual with the characteristics above, evaluate how likely it is that this person will
repay the loan in each of the three categories. Give a rating of "low risk, "medium risk," or
"high risk."
a. Capacity:
b.
Character:
C.
Collateral:
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