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2 years ago

Which loan created a habit where the borrower kept coming back to request an extension?

Business

1 answer:

Anna35 [415]2 years ago

4 0

Answer:

Extension proposals are not rare because of the buyer's perspective of bridging finance as well as the explanations for both the requirements can indeed be broad. The much more common explanations are.

Explanation:

It has required longer than planned to secure planning approvals.
When a transaction has been negotiated, the borrower awaits an exchange of contracts.
Additional resources as well as time are needed by the creditor to accomplish his project.
Refurbishment analysis was suddenly postponed.
Before actually refinancing the debt, the creditor waits for something like a new lender to conclude his thorough research.
Throughout the final moment, the buyer of the creditor's property backs out, causing the borrower to bring the estate back into the marketplace.
Throughout the last minute, the previous buyer refinancing the property backs out, obliging the creditor to find some mortgage company.

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Using these data from the comparative balance sheet of Sunta Fe Spice Company, perform horizontal analysis. (Round percentages t

frozen [14]

Answer:

75000,25%;

18000, 30%.

420000, 15%.

Explanation:

From the question above we are given the following parameters Accounts receivable for year 2017 = $ 375,000,

Inventory for the year 2017 = 780,000 and the Total assets for the year 2017 = 3,220,000.

Accounts receivable for year 2016 = $ 300,000, inventory for the year 2016 = 600,000 and the Total assets for the year 2016 = 2,800,000.

Therefore, we have the following simple arithmetic(which is subtraction between the variables in the two years) to determine the solution to the question:

(375,000 - 300,000) = 75,000 = 25%(increase).

(780,000 - 600,000) = 180,000 = 30%(Increase).

(3,220,000 - 2,800,00) = 420,000 = 15%(increase).

8 0

2 years ago

Read 2 more answers

Due to his reputation of putting together powerful presentations, Bennett was contractually hired by Robotic Life, Inc., to help

Alla [95]

Answer: Virtual organization

Explanation:

Virtual organization is referred to as or known as a permanent or temporary collection of the geographically dissipate individuals, organizational units, groups, or maybe the entire organization that tends to depend upon the electronic linking so as to complete production of the process. Virtual organizations do not tends to represent an organization's attribute but on the other hand is taken in consideration as a completely different organizational form.

4 0

1 year ago

The rates of return on Cherry Jalopies, Inc., stock over the last five years were 22 percent, 11 percent, −4 percent, 6 percent,

cupoosta [38]

Answer:

Cherry Jalopies, Inc.:

mean = (0.22 + 0.11 - 0.04 + 0.06 + 0.09) / 5 = 0.52 / 5 = 0.104

variance = [(0.22 - 0.104)² + (0.11 - 0.104)² + (-0.04 - 0.104)² + (0.06 - 0.104)² + (0.09 - 0.104)²] / 5 = (0.013456 + 0.000036 + 0.020736 + 0.001936 + 0.000196) / 5 = 0.007272

standard deviation = √0.007272 = 0.085276 = 8.53%

Straw Construction Company:

mean = (0.16 + 0.23 - 0.01 + 0.01 + 0.17) / 5 = 0.56 / 5 = 0.112

variance = [(0.16 - 0.112)² + (0.23 - 0.112)² + (-0.01 - 0.112)² + (0.01 - 0.112)² + (0.17 - 0.112)²] / 5 = (0.002304 + 0.013924 + 0.014884 + 0.010404 + 0.003364) / 5 = 0.008976

standard deviation = √0.008976 = 0.09474 = 9.47%

5 0

2 years ago

Masterson, Inc., has 4.1 million shares of common stock outstanding. The current share price is $84, and the book value per shar

Kitty [74]

Answer:

The answer is "8.37%".

Explanation:

$\text{MV of equity} = \text{equity price} \times \text{number of outstanding shares}$

$=84 \times 4100000\\\\=344400000$

$\text{MV of Bond1}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}$

$=1000 \times 70000 \times 0.98 \\\\=68600000$

$\text{MV of Bond2}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}$

$=1000 \times 50000 \times 1.08 \\\\=54000000$

$\text{MV of firm} = \text{MV of Equity} + \text{MV of Bond1}+ \text{MV of Bond 2}$

$=344400000+68600000+54000000\\\\=467000000$

$\text{Weight of equity W(E)} = \frac{\text{MV of Equity}}{\text{MV of firm}}$

$= \frac{344400000}{467000000}\\\\=0.7375$

$\text{Weight of debt W(D)}= \frac{\text{MV of Bond}}{\text{MV of firm}}$

$= \frac{122600000}{467000000}\\\\=0.2625$

Equity charges

By DDM.

$\text{Price = new dividend} \times \frac{(1 + \text{rate of growth})}{( \text{Equity expense-rate of growth)}}$

$84 = 3.95 \times \frac{(1+0.05)}{(\text{Cost of equity}- 0.05)}\\\\84 = 3.95 \times \frac{(1.05)}{(\text{Cost of equity} - 0.05)}\\\\84 = \frac{4.1475}{ (\text{Cost of equity} - 0.05)}\\\\\text{Cost of equity} -0.05 = \frac{4.1475}{84}\\\\\text{Cost of equity} -0.05 = 0.049375\\\\\text{Cost of equity} = 0.049375 + 0.05\\\\\text{Cost of equity} = 0.099375 \\\\\text{Cost of equity} \% = 9.9375 \% \ \ \ or \ \ \ 9.94 \% \\\\$

Debt expenses

Bond1

$K = N \times 2 \\\\$

$Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}$

$k=1\\\\K =20 \times 2\\\\980 = \sum [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] + \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\$

$K = N \times 2$

$Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}$

$k=1\\\\K =12 \times 2\\\\$

$1080 =\sum [\frac{(5.6 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +\frac{1000}{(1 +\frac{YTM}{200})^{12 \times 2}} \\\\k=1\\\\YTM2 = 4.72\\\\$