Your friends just told you that they were denied a mortgage by their bank. The loan officer told them that they did not pass the 36 percent rule. They are confused and want you to explain what happened?
A) The house you were looking at was more expensive than you can comfortably afford.
B) You need to come up with a larger down payment.
C) You pay too much in other debt payments every month.
D) All of the above could be correct.
E) None of the above could be correct.
Answer: D
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What are value drivers?
A. a technique for easily identifying factors that validate a firm's performance B. a set of factors that verify the unique nature of a firm C. a firm's hidden success factor for creating over-the-top product features that will command the highest price in the industry D. a set of guidelines for identifying the most promising upscale attributes to incorporate into a product E. a set of factors (analogous to cost drivers) that are particularly effective in having a strong differentiation effect
Match each entrepreneur below with the form of business combination with which he is historically identified.
A. Andrew Carnegie 1. interlocking directorate B. John D. Rockefeller 2. horizontal integration C. J. Pierpont Morgan 3. vertical integration a. A-2, B-3, C-1 b. A-1, B-2, C-3 c. A-2, B-1, C-3 d. A-3, B-2, C-1 e. A-1, B-3, C-2
Congress established a trust fund for the EPA to use in Superfund cleanup. This trust fund was initially financed by a tax on what?
A)The general public through federal income taxes B)Waste management and landfill operators C)The construction industry D)The oil and chemical industries
Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired.Demers earns income and pays dividends as follows: 2019 2020 2021Net income$100,000 $120,000 $130,000 Dividends 40,000 50,000 60,000 ??Assume the equity method is applied.?Compute Pell's investment account balance in Demers at December 31, 2021.
A. $643,200. B. $620,000. C. $763,200. D. $676,000. E. $639,000.