Calculate her debt safety ratio

Assignment Help Financial Management
Reference no: EM131487826

Alyssa Clark is evaluating her debt safety ratio. Her monthly take-home pay is $2,580. Each month, she pays $420 for an auto loan, $170 on a personal line of credit, $85 on a department store charge card, and $60 on her bank credit card. Complete Worksheet 6.1 by listing Allysa's outstanding debts.

Calculate her debt safety ratio. Round the answer to 1 decimal place. Enter debt safety ratio as a percentage.

%

Given her current take-home pay, what is the maximum amount of monthly debt payments that Alyssa can have if she wants her debt safety ratio to be 15.0%? Round the answer to the nearest dollar.

$

Given her current monthly debt payment load, what would Alyssa's take-home pay have to be if she wanted a 15.0% debt safety ratio? Round the answer to the nearest dollar.

$

Reference no: EM131487826

Questions Cloud

Health care delivery system in the united states : Managed Health Care has significantly affected the Health Care Delivery system in the United States. In your own words, describe Managed Health Care.
Calculate the cost performance index : Using the following information, calculate the cost performance index and the schedule performance index.
Good leadership and effective leadership : What do you think is the difference between "good" leadership and "effective" leadership? Provide examples.
What is the revised forecast of return on common equity : Residual Earnings Valuation and Accounting Methods (Hard) Refer back to the valuation. In that proforma, an analyst forecast $388 million of earnings for 2013.
Calculate her debt safety ratio : Alyssa Clark is evaluating her debt safety ratio. Calculate her debt safety ratio.
Comprehensive needs assessment handled : How is a comprehensive needs assessment handled in event management and planning?
Reproduce the retained earnings account : The post-closing trial balance of Storey Corporation at December 31, 2015. Reproduce the Retained Earnings account for 2015.
What is a gap analysis : What is a gap analysis? What are the benefits to an event planner? Check out chapter 2 in our textbook along with other research.
Direct traffic route from major residential area : A new 5-mile long elevated roadway is constructed to give a direct traffic route from major residential area over a swamp area to industrial complex of a city.

Reviews

Write a Review

Financial Management Questions & Answers

  What should you be willing to pay today for the annuity

An insurance company offers you an annuity of $36,000 per year for the next 15 years. They claim your return on the annuity is 13%. What should you be willing to pay today for the annuity? A financial instrument that agrees to pay an equal amount of ..

  Assume that the second bank compounds interest semi-annually

A bank offers you $1050 in one year from now, if you deposit $1000 today. A competitor of this bank quotes APRs on their savings accounts. Assume that the second bank compounds interest semi-annually. What APR does the second bank have to offer so th..

  Dental equipment and related office work expected

My dentist recently asked me to help him. He wants to buy new dental equipment and related office work expected to cost $400,000. This will have a useful life of 10 years and will generate net cash flow of $60,000 per year. With a 5% MARR, can he fin..

  After tax salvage value-asset has an acquisition cost

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,010,000 and will be sold for $1,210,000 at the end of the project. If the tax rate is 30 percent, what is the after tax ..

  What is the required after-tax refunding investment outlay

Oxford Corp. is considering refunding a $30,000,000, annual payment, 12% coupon, 30-year bond issue that was issued 5 years ago. It has been amortizing $2 million of flotation costs on these bonds over their 30-year life. The new bonds would be issue..

  Calculate the minimum transfer balance required to justify

Calculate the minimum transfer balance required to justify the use of a wire transfer.

  Explain financial strategies for manufacturing

MGT 498- Appraise costing and financial strategies for manufacturing and service companies. Include Scholarly Reference with Peer Reviewed Reference - Provide Proper APA formatted citations to list in reference section.

  Firm earnings per share after recapitalization

The Rivoli Company has no debt outstanding, and its financial position is given by the following data: Assets (Market value = book value) $3,000,000 EBIT $500,000 Cost of equity, rs 10% Stock price, Po $15 Shares outstanding, no 200,000 Tax rate, T (..

  What single deposit made now will fund this endowment

For an interest rate of 12% compounded quarterly, what single deposit, made now, will fund this endowment?

  What conditions do options investments become more appealing

Under what conditions do options investments become more appealing or less appealing? Did derivatives cause the recession?

  Contracts of call option on a stock

An option trader buys 2 contracts of a call option on a stock. Each contract is on 100 shares of the stock. The delta of the call option is 0.3. If the trader delta-hedges his position, what should he do?

  Explain crocket''s estimate has considered some things

The new machine, according to the brochure sent over by the saleswoman, has a manufacturer's suggested retail price of $275,000, including installation and transportation

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd