Robert owns a $190,000 town house and still has an unpaid mortgage of $142,000. In addition to his mortgage, he has the following liabilities: Liabilities Visa $ 637 MasterCard 517 Discover card 483 Education loan 994 Personal bank loan 892 Auto loan 4,580 Total $ 8,103 Robert’s net worth (not including his home) is about $30,400. 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? Im not sure how to round the answer to 2 decimal places. (b) Has he reached the upper limit of debt obligations? yes or no?
Robert owns a $190,000 town house and still has an unpaid mortgage of $142,000. In addition to his mortgage, he has the following liabilities: Liabilities Visa $ 637 MasterCard 517 Discover card 483 Education loan 994 Personal bank loan 892 Auto loan 4,580 Total $ 8,103 Robert’s net worth (not including his home) is about $30,400. 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? Im not sure how to round the answer to 2 decimal places. (b) Has he reached the upper limit of debt obligations? yes or no?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 57P
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Question
Robert owns a $190,000 town house and still has an unpaid mortgage of $142,000. In addition to his mortgage, he has the following liabilities:
Liabilities | |
Visa | $ 637 |
---|---|
MasterCard | 517 |
Discover card | 483 |
Education loan | 994 |
Personal bank loan | 892 |
Auto loan | 4,580 |
Total | $ 8,103 |
Robert’s net worth (not including his home) is about $30,400. 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?
Im not sure how to round the answer to 2 decimal places.
(b) Has he reached the upper limit of debt obligations?
yes or no?
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