What is the importance of the loan-to-value ratio

Assignment Help Finance Basics
Reference no: EM133069436

What is the importance of the loan-to-value ratio (LVR)? If the LVR is 55% for a loan based on a firm's accounts receivable, is the credit risk of the lender fully covered?

Reference no: EM133069436

Questions Cloud

Green card or special visas : Bella is a citizen of the Cayman Islands. Now, they travel to the U.S. less frequently. They do not have a Green Card or any special Visas.
Prepare a journal entry to correct the error : As a result of the error, Wilkins understated interest expense by $61,000 in 2019 and $56,000 in 2020. Prepare a journal entry to correct the error
Raise the interest rate on the loan : A one-year ARM has a 60-day lookback period. Up until the last month of therate adjustment period, interest rates had risen 0.25%.
What has happened to the food cost over the first six months : Using the above figures express the Food cost as a % of sales for each month and explain what has happened to the food cost over the first six months
What is the importance of the loan-to-value ratio : What is the importance of the loan-to-value ratio (LVR)? If the LVR is 55% for a loan based on a firm's accounts receivable, is the credit risk of the lender fu
Identify the type i and type ii errors : The accounts of 4,500 credit card customers out of a sample of 40,000 that were reviewed did not perform satisfactorily. The credit scores assigned to these app
Estimate the expected returns of a and b : -Draw an ideal SML. Based on the early empirical results, what did the actual risk-return relationship look like relative to the ideal relationship implied by t
Negative impact of the current global economy : 1. What is the positive or negative impact of the current global economy on the Australian dollar? (Half a year to a year)
What is the minimum probability of success : Deep Drilling Oil (DDO) has a 20% discounting rate. They have the opportunity to drill at a new site. In order to drill, they must purchase$5 million in new equ

Reviews

Write a Review

Finance Basics Questions & Answers

  Consider the articles about walmart

Consider the articles about Walmart. Describe a communication plan that you believe would address Walmart's public relations (PR) concerns.

  What is the amount of the firm ebit

Advantage First Corporation has sales of $4,658,550; income tax of $310,375; the selling, general and administrative expenses of $209,771

  Pro-rata reinsurance and excess of loss reinsurance

What is the difference between pro-rata reinsurance and excess of loss reinsurance?

  What is the operating cash flow for the project in year 2

You are evaluating a project for your company. You estimate the sales price to be $270 per unit and sales volume to be 3,700 units

  What is the npv of project

If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project? (Assume that dNWC will be fully recovered in the last year o

  What is the monthly payment amount

You take out a mortgage in the amount of $200,000 for 30 years at a rate of 5.75%: a. What is the monthly payment amount? b. How much interest will you pay over 30 years?

  Why a multinational corporation might decide to borrow

From the e-Activity determine key reasons why a multinational corporation might decide to borrow in a country such as Brazil

  Find the current price of the put option in hong kong dollar

The annual risk-free rate in Hong Kong is 2%, and the annual risk-free rate in Singapore is 1%. Find the current price of the put option in Hong Kong dollar.

  Explain why earnings are important

Explain why earnings are important, particularly to management and shareholders.

  Evaluate different types of financing available

Evaluate different types of financing available in the marketplace and the related impact on firm value.

  What are some ways these schedules are used

What is a loan amortization schedule, and what are some ways these schedules are used?

  Summarize two key points about the time value of money

From the third e-Activity, summarize two key points about the time value of money and the manner in which you can personally apply it to your own financial planning.

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