Answer:
$1,000
Explanation:
The above means that for every $1 increase in the market value in a long margin account, the SMA increases by $0.50
If the market value rises to $22,000, the account will show
Long market value - Debit = Equity % SMA
$22,000 - $10,000 = $12,000
Against $22,00 of market value, 50% can be borrowed or $11,000. Since the debit is $10,000, an additional $1,000 can be borrowed . This is the SMA
The standard quantity allowed for the units produced was 4000 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $350 favorable. Each unit uses 1 pound of materials. How many units were actually produced
Answer:
Unites actually produced = 4,000 units
Explanation:
Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.
It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price
Material quantity variance in unit = Materials quantity variance in value /standard price
Material quantity variance in unit = 350/2.50 =140 pounds
Actual quantity used (in pounds) = standard quantity allowed - Material quantity variance
= 4000 - 140 = 3,860 pounds
Actual units produced = Standard quantity allowed/ standard quantity per unit
= 4,000/1 = 4000 units
Unites actually produced = 4,000 units
Internal or External Acquisitions:
No Opportunity Costs
The Van Division of MotoCar Corporation has offered to purchase 180,000 wheels from the Wheel Division for $40 per wheel. At a normal volume of 500,000 wheels per year, production costs per wheel for the Wheel Division are as follows:
Direct materials $15
Direct labor 11
Variable overhead 6
Fixed overhead 18
Total $50
The Wheel Division has been selling 500,000 wheels per year to outside buyers at $60 each. Capacity is 700,000 wheels per year. The Van Division has been buying wheels from outside suppliers at $56 per wheel.
(a) Calculate the net benefit (or cost) to the Wheel Division of accepting the offer from the Van Division.
(b) Calculate the net benefit (or cost) to Motocar Corp. if the Wheel Division accepts the offer from the Van Division.
Answer:
A. Profit per wheel = $8
B. Total benefit to Motor Corp. = $4,320,000
Explanation:
Requirement A
We can calculate the net benefit/cost to the wheel division of accepting the offer from van division by deducting all the variable cost from the selling price offered by van division
Selling price = $40
Direct material = $15
Direct labor = $11
Variable Overhead = $6
Profit per wheel = $8
Requirement B Net benefit to Motor car corp.
Increased the profit of wheel division by accepting the offer
180,000 x $8 =$1,440,000
Savings of van division by placing an order to wheel division
180,000 x $16(w) = $2,880,000
Total benefit to Motor Corp. = $1,440,000 + $2,880,000
Total benefit to Motor Corp. = $4,320,000
Working
Outside supplier price - Price offered by van division
$56 - $40
$16
1. While FF was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on its equity are calculated as arithmetic returns. 3. The historical returns for FF for 2012 to 2016 are:
Answer:
hello some details/parts of your question are missing attached below is the missing part
answer : A ) = 24.13%
B ) = 0.1084, The preceding data series represents a SAMPLE
C ) = 0.4494
Explanation:
A) The average realized return on FF stock can be calculated as
= 24% + 16.15% + 29% +39.9% + 12.35% / 5
= 24.13%
B) The preceding data series represents a SAMPLE standard deviation BECAUSE RETURNS WERE MADE ONLY FOR FIVE YEARS
and the sample standard deviation is calculated as
[tex]s^2 = \frac{summation ( x - mean vale)^2}{N-1}[/tex]
[tex]S^2 = \frac{0.0470383}{ 5 -1 }[/tex] = 0.01175056
s = [tex]\sqrt{0.01175056}[/tex] = 0.1084
C) coefficient of variation
coefficient of variation = standard deviation / mean
= 0.1084 / 0.2413 = 0.4494
A company has reported operating income of $25,000,000. The bond interest expense for the year is $4,000,000 and principal payments on bonds totaled $1,000,000. The company's debt service coverage ratio is:
Answer:
The company's debt service coverage ratio is 5.
Explanation:
The debt service coverage ratio refers to the financial ratio that give a measure of the ability of a company to meet its current debts obligation.
The debt service coverage ratio therefore compares the operating income of the company with the company's total debt service obligations.
The total service obligation includes the current interest, principal repayment, and any other debt obligations.
The formula for calculating the debt service coverage ratio is given as follows:
Debt service coverage ratio = Operating income / Total debt service costs
Form the question, we have:
Operating income = $25,000,000
Total debt service costs = Interest expense + Principal payments on bonds = $4,000,000 + $1,000,000 = $5,000,000
Substituting the values into the formula, we have:
Debt service coverage ratio = $25,000,000 / $5,000,000 = 5
Therefore, the company's debt service coverage ratio is 5.
Since this is greater than 1, this iimplies that operating profits made by the company is more than enough to pay its current debt service costs.
Best Buy’s new CEO and CFO will need to function as catalysts in helping the organization to deal with old problems in new ways. They would then be known as
Answer: change agent
Explanation:
A change agent is a person who dies something new in a company by utilizing anew process, adoption of new management structure or using an old model in a new way.
Since Best Buy’s new CEO and CFO will need to function as catalysts in helping the organization to deal with old problems in new ways. They will be known as change agents.
The CEO is termed as the person that is accountable for the overall company's performance. The role of the CEO is determined as the board of directors. Whereas, CFO is the person who manages the financial part of the company, and is accountable for the finance of the organization.
The correct answer is Change agent
A change agent is a person who dies something new in a company by utilizing a new process, adopting of new management structure, or using an old model in a new way. This is the person who acts as the agent of the company.
To know more about the change agent, refer to the link below:
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If you could purchase IBM stock and simultaneously sell the stock for $5 more, you would be involved in one type of economic activity?a. indifference principleb. arbitragec. carry traded. marked to markete. none of the above
Answer:
arbitrage
Explanation:
Arbitrage can be defined as an act or process of buying buying and selling an asset simultaneously. Purchasing IBM stock and selling it for 5 dollar more simultaneously is an example of arbitrage. Such a seller is going to cash in on the price difference in buying and selling this stock. It is simply taking advantage of the difference in price that is gotten from buying and reselling this stock at 5dollars.
If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed
Answer:
350 units
Explanation:
The computation of the number of Cs is needed is shown below;
The requirement of Ps = 40
Ps still = 15
So, the Net of Ps needed is
=40 - 15
= 25
Bs needed for 25 units of P is
= 3 × 25
= 75
And, B units still = 10
So, the Net of B units needed is
= 75 - 10
= 65
So, Cs needed for 65 units of B is
= 4 × 65
= 260
Cs needed directly for every unit of P is
= 1 × 4
= 4
hence , total Cs needed for 25 units of P is
= 4 × 25
= 100
Now
Total Cs required is
= 260 + 100
= 360
And, C units still = 10
So, the Net Cs needed is
= 360 - 10
= 350 units
The statement of cash flows reports all but which of the following: Multiple Choice The financial position of the company at the end of the accounting period. Cash flows from financing activities. Cash flows from operating activities. Cash flows from investing activities. Significant noncash financing and investing activities.
Answer:
The financial position of the company at the end of the accounting period.
Explanation:
The cash flow statement is the statement that includes all the cash payment and cash receipts transactions held in the business. There are mainly three types of activities i.e operating activities, investing activities, and the financing activities
Also, it involves Significant noncash financing and investing activities.
but it does not reported the financial position of the business at the end of the accounting period
Hence, the first option is correct
Identify which of the factors below are better short-range predictors and which are better long-range predictors of movements in foreign exchange rates.a. Relative monetary growthb. Relative inflation ratesc. Nominal interest rate differentialsd. Psychological effectse. Investor expectationsf. Bandwagon effects
Answer:
Short range predictors:
c. Nominal interest rate differential
d. Psychological effects
e. Investor expectations
f. Bandwagon effect
Long range predictors:
a. Relative monetary growth
b. Relative inflation rates
Explanation:
Nominal rate, the real rate, and inflation. long term predictors of an economic theory in which a relationship between inflation, nominal interest rate and real interest rate is identified. It defines that real interest rate is equal to inflation minus nominal interest rate.
Bandwagon effect is a short range predictor because it is effect of uptake when people follow others. They take decisions what other do and its their belief that other people have taken the right decision so we too. This is just a short term hop based on beliefs regardless of any underlying evidence.
Delta Insurance Company has a surplus-share treaty with Eversafe Reinsurance. Delta has a retention limit of $200,000, and nine lines of insurance are ceded to Eversafe. How much will Eversafe pay if a $1,600,000 building insured by Delta suffers an 40 precent loss? 1. A) $600,000 2. B) $700,000 3. C) $720,000 4. D) $800,000
Answer:
Delta is responsible for insuring $200,000 / $1,600,000 = 1/8 of the building
Eversafe is responsible for 1 - 1/8 = 7/8
the loss = $1,600,000 x 40% = $640,000
Delta will pay 1/8 x $640,000 = $80,000
Eversafe will pay $640,000 - $80,000 = $560,000
in order for Eversafe to pay:
$600,000, the total loss = $685,714, or 42.86% of the building$700,000, the total loss = $800,000, or 50% of the building$720,000, the total loss = $822,857, or 51.43% of the building$800,000, the total loss = $914,286, or 57.14% of the buildingCanadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____.
Answer: import; export
Explanation:
Canadian logging companies sell timber in the United States. To the U.S., the timber is an import, and for Canadians, the timber is an export.
An import is a good that is brought into a country and sold from another country while an export is a good that a country sells to other country. Timber is a export to the United States since it's brought from Canada.
If the economy booms, RTF, Inc., stock is expected to return 9 percent. If the economy goes into a recessionary period, then RTF is expected to only return 4 percent. The probability of a boom is 68 percent while the probability of a recession is 32 percent. What is the variance of the returns on RTF, Inc., stock
Answer:
Variance = 5.44
Explanation:
The variance of a portfolio is a measure of the deviation of the returns of the assets making up the portfolio. Using the standard deviation, the variance can be worked out.
Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks.
Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .
The variance would be determined as follows:
Variance = Sum of P×(R- r )^2
P- probality
R- return on each asset
r- Expected return on portfolio
r =( Wa*Ra) + (Wb*Rb)
Expected return (r) = (9% × 0.68 ) + (4% × 0.32) = 7.4 %
Outcome R (R- r )^2 P×(R- r )^2
Recession 9 2.56 1.74
Boom 4 11.56 3.70
Total 5.44
Variance = Sum of P×(R- r )^2
Variance = 5.44
Bell Hill Mfg. is considering a rights offer. The company has determined that the ex-rights price would be $78. The current price is $100 per share, and there are 25 million shares outstanding. The rights offer would raise a total of $50 million. What is the subscription price?
Answer:
6.5
Explanation:
We can calculate Ex-Rights using following formula:
Ex-Rights = (Current Shares * Shares outstanding + Amount Raised) / (Current Shares + Amount Raised / Subscription Price)
Here
Market Value is $100
Shares Outstanding are 25 million
Amount Raised is $50 million
Ex-Rights price is $78
By putting values, we have:
$78 = (($100 * 25m) + $50m) / (25m + (50m/Subscription price))
$78 = ($2550) / (25m + ($50m/Subscription Price))
$78 / ($2550m) = 1 / (25m + ($50m/Subscription Price))
0.0000030588 = 1 / (25m + ($50m/Subscription Price))
Taking reciprocal, we have:
1 / 0.0000030588 = (25m + ($50m/Subscription Price))
$32.6923m = $25m + $50m / Subscription Price
$32.6923m - $25m = $50m / Subscription Price
$7.6923m = $50m / Subscription Price
$7.6923m / $50m = 1 / Subscription Price
0.153846 = 1 / Subscription Price
Taking Reciprocal, we have:
Subscription Price = 6.5
Using the following accounts and balances, prepare the "Stockholders’ Equity" section of the balance sheet using 20,000 shares of common stock authorized, and 1,000 shares have been reacquired.
Common Stock, $ 120 par $48,000,000
Paid In Capital from Sale of Treasury Stock 45,00,000
Paid In Capital in Excess of Par—Common Stock 64,00,000
Retained Earnings 63,680,000
Treasury Stock 5,200,000
Answer and Explanation:
The preparation of the stockholder equity of the balance sheet is presented below:
Shares issued $48,000,000
Add: Paid-In Capital in Excess of Par $6,400,000
Add: Paid in Capital from Sale of Treasury Stock $4,500,000
Add: Retained Earnings $63,680,000
Less: Treasury Stock, 40,000 shares -$5,200,000
Total stockholders' equity $117,380,000
You own a portfolio that has a total value of $235,000 and it is invested in Stock D with a beta of .82 and Stock E with a beta of 1.43. The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D?
Answer:
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g Call options on IBM-listed stock options are Group of answer choices created by investors and traded on various exchanges. issued by IBM Corporation. traded on various exchanges. issued by IBM Corporation and traded on various exchanges. created by investors.
Answer: Created by investors and traded on various exchanges
Explanation:
Call options are contracts that give the buyer the right to buy the underlying assets of the option on a particular date at a set price by exercising the option. American Call options can be exercised anytime before the date listed in the contract as well.
Call options are created by people who already own stock in the company i.e investors in IBM and traded on various exchanges such as the Chicago Board Options Exchange. It acts as a supplementary way to make income from stock if the investors do not believe that the stock price will go up thus enabling them to make income from the contract price.
For which of the following contracts, is a party's subjective dissatisfaction sufficient to excuse his performance under a "personal satisfaction" clause in a contract?
a. A contract to construct an intercontinental ballistic missile.
b. A contract to paint someone's portrait.
c. A contract to build a steam boiler.
d. A contract to rebuild an automobile engine.
Answer:
C. a contract to build a Steam boiler
A company issues 9% bonds with a par value of $110,000 at par on January 1. The market rate on the date of issuance was 8%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:
Answer: $4950
Explanation:
From the question, we are informed that a company issues 9% bonds with a par value of $110,000 at par on January 1 and that the market rate on the date of issuance was 8% and also that the bonds pay interest semiannually on January 1 and July 1.
There is no discount on the bonds payable because they are issues at par. Therefore, the cash paid on July 1 to the bond holders will be:
= $110,000 x 9% x 6/12
= $110,000 x 9/100 x 6/12
= $110,000 x 0.09 x 0.5
= $4,950
Universal Travel Inc. borrowed $497,000 on November 1, 2018, and signed a 12-month note bearing interest at 4%. Interest is payable in full at maturity on October 31, 2019. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2018, in the amount of:
Answer:
Dec 31, 2018
Interest expense 3313.33 Dr
Interest Payable 3313.33 Cr
Explanation:
The note interest is payable at an annual rate of 4%. The interest will be paid at maturity however, an adjusting entry will be made on December 31, 2018 following the accrual basis of accounting to record the interest expense that relates to the period from November to December of 2018. The interest expense will be debited and as the interest will be paid at maturity, interest payable will be credited.
Interest expense = 497000 * 0.04 * 2/12 = $3313.33
A market economy is regulated by the interactions between which two things?
Answer:
b is the answer
Explanation:
producers and consumers
The following questions will test you on what you have just learned about sentence-level writing including dangling modifiers, independent and dependent clauses, and parallelism.
Identify the dangling modifier in the sentence, and choose the best revision.
When beginning the meeting, the fire alarm went off.
1. The fire alarm went off when beginning the meeting.
2. When we were beginning the meeting, the fire alarm went off
Katie reviewed the meeting minutes taking the train into Boston.
1. Katie reviewed the meeting minutes taking the train into Boston.
2. Taking the train into Boston, Katie reviewed the meeting minutes.
Identify the dependent clauses in the list below. Check all that apply
1. Unless he responds to my request in the next 24 hours
2. Therefore, she is able to reprogram the system
3. When he opened the e-mail message
Identify the independent clauses in the list below. Check all that apply.
1. During the opening speaker's presentation.
2. Meanwhile, the executive assistant printed the agenda.
3. Even though fourth quarter numbers improved.
Identify the sentence with correct parallel structure.
1. The systems analyst found that we needed to upgrade our equipment, revise our backup process, and implement better security measures.
2. The systems analyst found that we needed upgraded equipment, revised backup processes, and to implement better security measures.
Choose the best option to complete the sentence.
If you _________, you will do well in this corporation.
1. write well, speak well, and use good interpersonal skills
2. write well, speak well, and are using good interpersonal skills
Answer:
Sentence-level Writinga. Dangling Modifier:
1.
Dangling Modifier: When beginning the meeting
Best Revision: 2. When we were beginning the meeting, the fire alarm went off
2.
Dangling Modifier : taking the train into Boston
Best Revision: Taking the train into Boston, Katie reviewed the meeting minutes.
b. Identifying the dependent clauses:
1. Unless he responds to my request in the next 24 hours
3. When he opened the e-mail message
c. Identifying the independent clauses:
2. Meanwhile, the executive assistant printed the agenda.
d. Identifying the sentence with the correct parallel structure:
1. The systems analyst found that we needed to upgrade our equipment, revise our backup process, and implement better security measures.
e. Best option to complete the sentence:
If you _________, you will do well in this corporation.
1. write well, speak well, and use good interpersonal skills
Explanation:
a. A phrase or clause that is not directly related to the word or words it modifies is called a dangling modifier. Usually, the word a dangling modifier modifies may be absent from the sentence. An example is "when beginning the meeting." The word it modifies may be "we" as in "When we were beginning the meeting, the fire alarm went off."
b. A clause which cannot make a complete sense or sentence is called a dependent clause. It requires another clause to make a complete sense. The clause that makes a complete a complete sentence and can stand alone without another clause is an independent clause.
c. A sentence that has grammatical structure which is balanced is said to have parallelism. This can also be called parallel structure or construction. This means that the items listed follow similar pattern that rhyme with one another. Let us revise the sentence with the wrong parallel structure in this case so as to make it become a parallelism: "The systems analyst found that we needed upgraded equipment, revised backup processes, and better implemented security measures." By this revision, the wrong parallel sentence now has a well-structured parallelism.
A dangling modifier is a phrase or sentence that has no direct connection to the word or words it modifies. The correct options for the dangling modifier are When beginning the meeting and taking the train into Boston, and the correct options for the independent clause are Unless he responds to my request in the next 24 hours, and When he opened the e-mail message.
1.
Dangling Modifier: When beginning the meeting
Best Revision: 2. When we were beginning the meeting, the fire alarm went off
2.
Dangling Modifier: taking the train into Boston
Best Revision: Taking the train into Boston, Katie reviewed the meeting minutes.
b. Identifying the dependent clauses:
1. Unless he responds to my request in the next 24 hours
3. When he opened the e-mail message.
The term that a dangling modifier usually modifies may not even be present in the phrase. An illustration might be "when the meeting starts." The word it modifies can be "we," as in "The fire alarm went off as we were starting the meeting."
A dependent clause is a clause that cannot be used to finish a sentence or make sense on its own. For it to make sense, another sentence is necessary. An independent clause is one that can stand alone without the help of another clause and completes a complete sentence.
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Antitrust regulations would most likely require one of the following in order to determine whether or not a merger may enhance competition. Which one is it?
A. Highly complex analytical tools
B. Analysis using numerical tools
C. Obvious objective judgments
D. Readily qualified judgments
Answer: analysis using numerical tools
Explanation:
The main reason for the creation of Antitrust laws was to give power to the government to block some particular mergers and also break up the large firms to smaller ones.
Antitrust regulations would most likely require analysis using numerical tools in order to determine whether or not a merger may enhance competition.
At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%
Answer:
Machine to select for maximum payoff:
Expected Outcomes:
A = $45,000 x 90% = $40,500
B = $80,000 x 50% = $40,000
C = $60,000 x 75 % = $45,000
C has the highest expected outcome of $45,000
Choose C.
Explanation:
Anticipated benefits:
A = $45,000 with pr = 90%
B = $80,000 with pr = 50%
C = $60,000 with pr = 75%
The expected benefit or outcome Machine A is obtained by multiplying the anticipated benefit with its probability of occurrence. This gives a value that has been weighed. The decision rule is to choose the machine with the highest outcome.
White Lion Homebuilders has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $2.03 at the end of the year. The company’s earnings’ and dividends’ growth rate are expected to grow at the constant rate of 9.40% into the foreseeable future. If White Lion expects to incur flotation costs of 3.750% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be .
Answer:
18.84%
Explanation:
the flotation adjusted cost of new common stock = [expected dividend / (net proceeds from stock issuance)] + expected growth rate
expected dividend = $2.03net proceeds from stock issuance = $22.35 x (1 - flotation costs) = $22.35 x 0.9625 = $21.5119expected growth rate = 9.4%the flotation adjusted cost of new common stock = [$2.03 / $21.5119] + 9.4% = 9.44% + 9.4% = 18.84%
On January 1 of the current year, Paisley Company issues a 4-year, non-interest-bearing note with a face value of $7,000 and receives $4,852 in exchange. The recording of the issuance of the note includes a
Answer and Explanation:
The journal entry is shown below:
Cash Dr $4,852
Discount on note payable $2,148
To Note payable $7,000
(Being the issuance of the note is recorded)
Here we debited the cash and discount on note payable as it increased the assets and discount are always debited and credited the note payable as it also increased the liabilities so that the proper posting could be done
According to the Security Risk Management: Building an Information Security Risk Management Program From the Ground Up textbook, "there will be risks that can't be mitigated at all, aren't worth the effort to reduce the exposure any further, or just won't be addressed in the short term due to other priorities" (p. 47). Provide a real-world example for each of these three scenarios and explain why the risk meets the criteria.
Answer with Explanation:
Risk which can’t be mitigated: The risks that the share price would fall due to sudden political environment instability or events that effects the economy will definitely affect the business operations as well. Thus are the risks that can not be mitigated at all. Another example would be Corona virus implications on the operation of the company which is again a risk that can't be mitigated.
Risks, that aren’t worth the effort to reduce the exposure any further:
The part of the sentence talks about the risk exposure which says that if the company doesn't resides in an area which is not prone to seismic activity and the chances of earthquake in a country is below 0.000001% which is almost negligible but still it is worthless to purchase the earthquake insurance. As this risk is almost negligible hence it is not worth the effort to reduce the exposure any further.
Risks that wouldn't be addressed in short term due to other priorities:
The risks that will not occur in the next 12 month, can be addressed after 6 months and thus allowing the company to prioritize the risks that must be resolved first. This means that if their is a risk that one of our several products that would be launched after 12 months from now will not be winning customer market can be addressed after 6 months because it is dependent on our future action. If we don't launch our product, our product is not rejected by the customer. Hence situations like this allows us to prioritize our risks.
Delta Distributors has accounts receivable of $2,750,000 and average daily credit sales of $118,280. The firm offers credit terms of 2/10, net 30. On average, what is the firm's accounts receivable period?
Answer:
The firm's accounts receivable period is 23.25 days
Explanation:
Accounts receivable period = 365 / Account receivable turnover ratio
When Account receivable turnover ratio = Net sales / Account receivables
Account receivable turnover ratio = 118,280 * 365 days/ 2,750,000
Account receivable turnover ratio = 15.698
Hence, Account receivable period = 365 / 15.698
Account receivable period = 23.25 days
Ink Inc. has a capital structure consisting of 25 percent debt and 75 percent common equity financing. The company has $800 million in net income and plans to pay out 40 percent of their earnings as dividends. What is the maximum amount of new financing that the company can raise without selling new common stock?
Answer:
$640 million
Explanation:
The computation of maximum amount of new financing is shown below:-
New financing from equity = $800 million × (1 - 40%)
= $480 million
New financing from debt = $480 million ÷ 75% × 25%
= $160 million
Now the maximum amount of new financing is
= $480 million + $160 million
= $640 million
Hence, the maximum amount of new financing is $640 million
1. Name one practice that is prohibited under Section 8 of RESPA.
2. List at least three categories under ECOA on which creditors may not base credit decisions.
3. Define rescission as it relates to a mortgage loan transaction.
4. List at least two practices that are not prohibited with regard to appraisers.
Answer:
The answer is below
Explanation:
1. Pactice that is prohibited under Section 8 of RESPA includes the following:
i. Payment or Receive of "things of value" for business referrals
ii. Fee splitting when the job or work is yet to be done, to earn a part of the fee
iii. Excessive charges such as mark-ups, double billing, etc.
iv. Void agreement or understanding with regard to referrals and settlement services
2. Categories under ECOA on which creditors may not base credit decisions are:
Race, Color, Religion, Nationality, Sex, Marital status, Age, Receipt of public assistance and Exercise of rights under the Consumer Credit Protection Act
3. Rescission is a term that describes a form of legal remedy that voids an agreement between two parties and take back both parties to the initial state before the transaction.
Recission right is however applicable to specific loan transactions, for example refinances and home equity lines of credit.
4. Practices that are not prohibited with regard to appraisers.
i. Payment or Receive of "things of value" for business referrals
ii. Fee splitting when the job or work is yet to be done, to earn a part of the fee
iii. Excessive charges such as mark-ups, double billing, etc.
iv. Void agreement or understanding with regard to referrals and settlement services.
The answer to the queries given above are stated as follows:-
1. Cash or other 'things of value' as defined under section 8 of the Act are stated to be not to be used by any such firm for the purpose of business referrals.
2. A banking or financial institutions providing credit facilities may not base their credit decisions on factors like race, sex, religion, nationality, beliefs, etc which are irrelevant to the credibility of a borrower in the market.
3. Rescission relates to the revoking, calling back, reversing the judgement passed by the law and make necessary amendments to the law as may be deemed fit.
4. An appraiser may not try to influence the property through the way of wrongful behavior like fraud,coercion or impersonation. And any other such act which relates to criminal conduct must be avoided by the appraiser.
Things of value refer to such assets or class of assets that are easily liquidated and their values are easily realizable due their liquidity and acceptability in the market.There shall be no discrimination for providing credit facilities on the bases of unrelated phenomenon such as sex, religion, race, castes of a person and shall be purely based on credibility of such person.Rescission relates to the mortgage loan transaction in a way that it is available to the parties of such transaction in cases where there is refinancing or a home mortgage against finance facility.Any such agreements which are void ab initio, void during the contract or voidable at the end of any party are not allowed for appraisers so it can be concluded that only legally bound contracts are allowed.There shall be no acts of impersonation, frauds leading to coercion are also prohibited in case of appraisers of a property so only genuine appraisal of a property is allowed.Hence, the correct statements are mentioned above for all the queries as asked under the headings of 1, 2, 3 and 4 and hold true.
To know more about lawful acts, click the link below.
https://brainly.com/question/25403846
Formulate a unique business idea and state the mission and vision statements
Answer:
The answer is below
Explanation:
Business Idea:
Online Courses and Coaching (OCC)
Vision Statement:
OCC promotes world arrangement and comprehensive learning territories through the process of rising advancement in technologies.
Mission Statement:
At OCC, our vibrant squad assists the internet community by delivering training, a form of research, and adaptable support services. By means of productive problem solving, teamwork, and introspection we contribute to an excellent background for development in teaching and learning in an endeavor to best assist the students or scholars, faculty, and staff.
