The return on equity is the product of: a. the profit margin multiplied by the asset utilization b. the return on assets multiplied by the inverse of the ratio of equity to assets c. return on assets multiplied by the ratio of equity to assets d. none of the above. A local restaurant decides to take out an amortized loan as follows: Amount of loan = $50,000; Interest rate = 8%; Term = 5 years. What should be the annual instalment? a. $15,522 b. $12,523 c. $12,420 d. $10,560 A typical loan-to-price ratio is a. 80% b. 90% c. 60% d. 70% Commercial (in contrast to consumer) line of credit is an agreement between a customer and a bank that a. is renewed at the end of the contract period in an evergreen facility. b. gives the customer the right to borrow up to a predetermined amount. c. is usually for one year or longer. d. may not obligate the bank to honour the customer’s request for a loan
The return on equity is the product of: a. the profit margin multiplied by the asset utilization b. the return on assets multiplied by the inverse of the ratio of equity to assets c. return on assets multiplied by the ratio of equity to assets d. none of the above. A local restaurant decides to take out an amortized loan as follows: Amount of loan = $50,000; Interest rate = 8%; Term = 5 years. What should be the annual instalment? a. $15,522 b. $12,523 c. $12,420 d. $10,560 A typical loan-to-price ratio is a. 80% b. 90% c. 60% d. 70% Commercial (in contrast to consumer) line of credit is an agreement between a customer and a bank that a. is renewed at the end of the contract period in an evergreen facility. b. gives the customer the right to borrow up to a predetermined amount. c. is usually for one year or longer. d. may not obligate the bank to honour the customer’s request for a loan
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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The return on equity is the product of:
a.
the profit margin multiplied by the asset utilization
b.
the return on assets multiplied by the inverse of the ratio of equity to assets
c.
return on assets multiplied by the ratio of equity to assets
d.
none of the above.
A local restaurant decides to take out an amortized loan as follows: Amount of loan = $50,000; Interest rate = 8%; Term = 5 years. What should be the annual instalment?
a.
$15,522
b.
$12,523
c.
$12,420
d.
$10,560
A typical loan-to-price ratio is
a.
80%
b.
90%
c.
60%
d.
70%
Commercial (in contrast to consumer) line of credit is an agreement between a customer and a bank that
a.
is renewed at the end of the contract period in an evergreen facility.
b.
gives the customer the right to borrow up to a predetermined amount.
c.
is usually for one year or longer.
d.
may not obligate the bank to honour the customer’s request for a loan
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