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property. his equity is in mutual fund a. What is Robert's debt-to-equity ratio? (Round your answer to 2 decimal places.) Debt-to-equity ratio b. Has he reached the upper limit of debt obligations? Yes No

property. his equity is in mutual fund a. What is Robert's debt-to-equity ratio? (Round your answer to 2 decimal places.) Debt-to-equity ratio b. Has he reached the upper limit of debt obligations? Yes No

FINANCIAL ACCOUNTING
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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Robert Sampson owns a townhouse valued at $140,000 and still has an unpaid mortgage of $110,000. In addition to his mortgage, he has the following liabilities: Visa MasterCard Discover card Education loan Personal bank loan Auto loan Total $ 565 480 395 920 800 4,250 $7,410 Robert's net worth (not including his home) is about $21,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. a. What is Robert's debt-to-equity ratio? (Round your answer to 2 decimal places.) Debt-to-equity ratio b. Has he reached the upper limit of debt obligations? Yes No
Transcribed Image Text:Robert Sampson owns a townhouse valued at $140,000 and still has an unpaid mortgage of $110,000. In addition to his mortgage, he has the following liabilities: Visa MasterCard Discover card Education loan Personal bank loan Auto loan Total $ 565 480 395 920 800 4,250 $7,410 Robert's net worth (not including his home) is about $21,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. a. What is Robert's debt-to-equity ratio? (Round your answer to 2 decimal places.) Debt-to-equity ratio b. Has he reached the upper limit of debt obligations? Yes No
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