Robert owns a $213,000 town house and still has an unpaid mortgage of $174,000. In addition to his mortgage, he has the following liabilities: Liabilities Visa 24 610 MasterCard 561 Discover card 429 Education loan 1,003 Personal bank loan 894 Auto loan 4,970 Total 2$ 8,467 Robert's net worth (not including his home) is about $21,600. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. (a) What is Robert's debt-to-equity ratio? (Round your answer to 2 decimal places.) Debt-to-equity ratio (b) Has he reached the upper limit of debt obligations? O Yes O No
Robert owns a $213,000 town house and still has an unpaid mortgage of $174,000. In addition to his mortgage, he has the following liabilities: Liabilities Visa 24 610 MasterCard 561 Discover card 429 Education loan 1,003 Personal bank loan 894 Auto loan 4,970 Total 2$ 8,467 Robert's net worth (not including his home) is about $21,600. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. (a) What is Robert's debt-to-equity ratio? (Round your answer to 2 decimal places.) Debt-to-equity ratio (b) Has he reached the upper limit of debt obligations? O Yes O No
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 57P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you