How much can she borrow in a home equity loan

Assignment Help Financial Management

Reference no: EM131068849

Acme Home Lending offers home equity loans up to 75% of the home value for its customers. If Sally Johnson has a home valued at $270,000 and a current mortgage of $81,000, how much can she borrow in a home equity loan from Acme?

Reference no: EM131068849

Questions Cloud

What is the profitability index of each project : What is the NPV of each project if the discount rate is 10%? What is the profitability index of each project?

Which project does the irr rule-cash flows : Which project does the IRR rule suggest is best? Which project is really best?

How many days are in this cash cycle : Ac corporation has beginning inventory of $9,049, accounts payable of $7,212, and accounts receivable of $6,333. The end of year values are $7,850 for inventory, $8,515 for accounts payable, and $7,029 for accounts receivable. Net sales are $91,200 a..

Market line or the risk return trade off line : In Chapter 8 Figure 8.1 (known as the market line or the risk return trade off line) why should a company reject investment opportunities lying below the market line and accept those lying above the market line ? The Coca-Cola Company's beta is 0.73...

How much can she borrow in a home equity loan : Acme Home Lending offers home equity loans up to 75% of the home value for its customers. If Sally Johnson has a home valued at $270,000 and a current mortgage of $81,000, how much can she borrow in a home equity loan from Acme?

What would the cost of equity be if the debt-equity ratio : Twice Shy Industries has a debt−equity ratio of 1.6. Its WACC is 8.6 percent, and its cost of debt is 6.1 percent. The corporate tax rate is 35 percent. What is the company’s cost of equity capital? What is the company’s unlevered cost of equity capi..

Reduce turnover and improve productivity : ?Digby will continue to keep their current hourly levels of training in order to help reduce turnover and improve productivity next year. How much must be spent per employee on an hourly basis to maintain the current training commitment...

In order to maintain his high standards of construction : Hassan operates a building company specializing in homes built for the Wave, in Muscat. In order to maintain his high standards of construction, Hassan kept his company small and never had more than two projects going at one time. The contract price,..

Loan preapproval and low-interest loan : The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owing more than the car is worth, which is called Negative equity. Low monthly payments. All of these are potential problems...

User Account

All Pages