The rate of return on assets and the cost of borrowing

Assignment Help Financial Management

Reference no: EM131867963

1. The instrument that evidences the borrower's indebtedness and promise to repay is called a:

1) mortgage.

2) land contract.

3) promissory note.

4) trust deed.

2. The difference between the rate of return on assets and the cost of borrowing is:

1) financial leverage.

2) spread.

3) debt service.

4) none of the above.

Reference no: EM131867963

Questions Cloud

Considered to be more risky asset class than corporate bonds : Common stock is generally considered to be a more risky asset class than corporate bonds because:

Find the total cost of both the lease and the purchase : LEASE VERSUS PURCHASE CAR DECISION. find the total cost of both the lease and the purchase, and then recommend the best strategy for Everett.

What term describes the value of money : What term describes the value of money in some time period beyond time 0? Effective interest rates are.

The debt coverage ratio is the relationship between : The size of the annual debt service depends upon. The debt coverage ratio is the relationship between.

The rate of return on assets and the cost of borrowing : The difference between the rate of return on assets and the cost of borrowing is.

Pledge of two or more parcels of land to secure single loan : The mortgage constant is. Which of the following represents a pledge of two or more parcels of land to secure a single loan?

Compute each stock average return and standard deviation : Compute each stock’s average return, standard deviation, and coefficient of variation.

How large equal annual end-of-year deposit : How large equal annual end-of-year deposit must be made into account paying annual rate of interest of 13 percent in order to buy beach house upon retirement?

What is the net present worth for new computer system : Kermit is considering purchasing a new computer system. What is the net present worth for this new computer system?

User Account

All Pages