Has he reached the upper limit of debt obligations

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Reference no: EM131453815

Robert Sampson owns a $195,000 townhouse and still has an unpaid mortgage of $160,000. In addition to his mortgage, he has the following liabilities:

Visa $910

Mastercard $270

Discovercard $510

Education Loan $3000

Personal Bank Loan $500

Auto Laon $4200

Total= $9390

Robert’s net worth (not including his home) is about $49,000. 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? (Round your answer to 2 decimal places.)

b) Has he reached the upper limit of debt obligations? Yes or No?

Reference no: EM131453815

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