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dimaraw [331]
2 years ago
15

Assume that houses in an area appreciate at the rate of 4 percent a year. A borrower expects to have a loan-to-value ratio of 90

percent. What is the approximate expected appreciation rate on home equity (EAHE)?
Business
1 answer:
notka56 [123]2 years ago
5 0

Answer:

The approximate expected appreciation rate on home equity (EAHE) is 40%

Explanation:

Loan to Value ratio is a term which determine the value of loan as compared to value of house. It is used to issue the loan amount on a property. The amount within the available limit is issued as a loan on the building.

Expected Appreciation rate  = Area appreciation / Home Equity ratio

Expected Appreciation rate  = Area appreciation / ( 100% - Loan to value ratio)

Expected Appreciation rate  = 4% / ( 100% - 90% )

Expected Appreciation rate  = 4% / 10%

Expected Appreciation rate  = 40%

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. Ashley has an individual medical expense insurance policy with a $1,000 calendar-year deductible and a 80–20 percent coinsuran
tia_tia [17]

Answer:

Amount insurer pays = $7000

Amount Ashley pays = $3000

Explanation:

Given that

Deductible = 1000

Incured medical Bill's = 10,000

On a 80-20 coinsurance clause

The insurer pays 80% of incured cost minus deductible and Ashley pays 20% of incured cost plus deductibles.

Therefore

Amount insurer pays = (10000 × 0.8) - 1000

= 8000 - 1000

= $7000

Amount Ashley Pays = (10000 × 0.2) + 1000

= 2000 + 1000

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7 0
2 years ago
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anzhelika [568]

Answer:

The correct option is b.

Explanation:

Telephone as the fastest approach would be using a telephone. This mode is the fastest mode of communication for Raj to communicate with his team immediately.

6 0
2 years ago
You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You
Nesterboy [21]

Answer:

Cost of equity, re= 0.098356 or 9.84 %

Explanation:

D1 = $ 1.25

P0 = $ 27.50

gL = 5 % = 0.05

F = 6 % = 0.06

Cost of equity, re can be calculated using the formular below:

Cost of equity, re = D1/ {P0 x (1- F)} + gL

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                             = $ 1.25 / ($ 27.50 x 0.94) + 0.05

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Cost of equity, re= 0.098356 or 9.84 %

8 0
2 years ago
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OLEGan [10]

Answer:

A) ability of Big Lots to imitate Wal-Mart's tightly integrated activity map.

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Competitive advantage of a company is it's ability to leverage on unique capabilities and resources to gain more market share than others.

In this instance Big Lots is competing favourably by imitating unique capability of Walmart which is highly disciplined merchandise cost and inventory management system.

A business can imitate another's strategy in order to better compete with them.

For example acquiring a company to increase scale of operations to match a competitor.

8 0
2 years ago
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Ethan received a gift card and was considering three options: digital camera, cell phone, and video games. After carefully think
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