Influence the size of the interest rate on mortgage loan

Assignment Help Financial Management
Reference no: EM131087749

Which of the following does not influence the size of the interest rate on a mortgage loan?

The specific location of the property.

The length of time the mortgage is outstanding.

The number of discount points paid by the buyer at closing.

The current level of interest rates in the economy.

Reference no: EM131087749

Questions Cloud

Compare the mean and median in each of two sample periods : Case Study: Ft. Myers Home Sales Due to a crisis in subprime lending, obtaining a mortgage has become difficult even for people with solid credit. In a report by the Associated Press (August 25, 2007), sales of existing homes fell for a 5th consecuti..
Distinguished from real assets in that financial asset : Financial assets can be distinguished from real assets in that financial asset:
What is the year zero project cash flow : You must evaluate a proposed spectrometer for the R&D department. The base price is $260,000, and it would cost another $65,000 to modify the equipment for special use by the firm.  What is the initial investment outlay for the spectrometer, that is,..
What would you be willing to pay at most for that bond : If the going market rate of interest is 8% in financial markets and you are offered to buy a corporate bond that will pay you $2,000 in two years, but no interest is paid between now and then (2 years), what would you be willing to pay at most for th..
Influence the size of the interest rate on mortgage loan : Which of the following does not influence the size of the interest rate on a mortgage loan?
What should you be willing to pay for magnetek stock : Magnetek Corp has just paid a dividend of $2 per share and you are now considering purchasing this stock. Analysts have estimated that Magnetek's dividend will grow at 4% per year in perpetuity. Given the riskiness of Magnetek stock, shareholders' re..
What is the present value of the project cash flows : A U.S. - based firm is planning to make an investment in Europe. The firm estimates that the project will generate cash flows of 100,000 euros after one year. If the one-year forward exchange rate is $1.35/euro and the dollar cost of capital is 10%, ..
How dollar cost averaging affects your investment portfolio : How dollar cost averaging affects your investment portfolio when living off the portfolio’s proceeds in retirement. How dollar cost averaging affects your investment portfolio when accumulating assets toward retirement. What QE is, and how it affects..
What is the firm cost of capital : Your firm recently paid a dividend of $4 to common stockholders. Dividends are expected to grow at 8% per year for the foreseeable future. The current stock price is $54. What is the firm’s cost of capital if their capital structure consists of 60% e..

Reviews

Write a Review

Financial Management Questions & Answers

  Target capital structure-what is aftertax cost of debt

Mullineaux Corporation has a target capital structure of 75 percent common stock, 5 percent preferred stock, and 20 percent debt. Its cost of equity is 13 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 6 percent. Th..

  Evaluating a new gold mine

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company’s geologist, has just finished his analysis of the mine site. The expected cash flows each year from the mine are shown in the tabl..

  How much more spendable income would each stockholder

ABC Corporation (ABC) now operates as a “regular” C corporation, but it is considering a switch to S Corporation status. ABC is owned by 100 stockholders who each hold 1% of the stock, and each faces a personal tax rate of 35%. How much more (or less..

  Divided the money according to the option pricing theory

Nui and Ginko bought Handa Studios by investing $1.5 million each. Nui was a stockholder, and thus the owner of the company. Initially, the corporation agreed to pay Ginko $3 million after ten years for his share of the business. However, by mutual a..

  Two different capital structures

Uptown construction is comparing two different capital structures. Plan i would result is 23,000 shares of stock and 320,000 in debt. Plan ii would result in 17000 shares of stock and 260,000 in debt.

  Mutually exclusive project-project with initial cash outflow

Consider two mutually exclusive projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project L is a 4 year project ..

  A stock has an expected return

A stock has an expected return of 13.2 percent, the risk-free rate is 8.5 percent, and the market risk premium is 10 percent. What must the beta of this stock be?

  What was average annual risk premium on small-company stocks

What was the average annual risk premium on small-company stocks for the period 1926-2011?

  Why does le rozier sa established the subsidiary in china

Why do you think that Le Rozier SA established the subsidiary in China instead of Japan? Assume no major country risk barriers.

  What is the predicted retained earnings next year

For the Home Depot Company assume that next years dividends grow by 5%. Given this forecast, what is the predicted retained earnings next year? Use this for the break point of equity cost.

  What is the bonds yield to maturity

A 15-year, 14% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,075. The bond sells for $1,050. (Assume that the bond has just been issued.) What is the bond's yield to maturity? What is the bond's curr..

  What is the portfolio beta

You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 30 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .91, 1.24, 1.08, and 1.26, respectively. What is the portfolio beta? (Do not round ..

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