Question
Lambert is meeting with the bank on October 31, 2020 and is quite nervous. He is looking to buy a condo and knows that the
Lambert is meeting with the bank on October 31, 2020 and is quite nervous. He is looking to buy a condo and knows that the bank will be assessing their risk in deciding how large of a loan to approve. He has provided you with the following information to help prepare for the meeting with the bank.
| Item | Value or amounts as of Oct. 1, 2020 |
| Chequing account | $2,000 |
| Tuition loan (remaining balance and must be paid by Dec. 31, 2020 | $3,000 |
| Savings account (amount recently deposited on July 1st after receiving his company bonus) | $5,000 |
| Furniture | $4,550 |
| Car | $21,700 |
| Car loan (loan payable over 2 years) | $15,300 |
| Monthly VISA payment (VISA always paid monthly in full when due) | $1,200 |
| Disposable income | $86,800 |
| Registered Retirement Savings Plan (RRSP) - stocks | $49,550 |
| Monthly rent (paid on the 1st of each month) | $1,500 |
| Food (weekly purchases) | $200 |
| Utilities including internet (monthly) | $300 |
| Other monthly expenses | $1,300 |
| Tax-Free Savings Account (TFSA) | $12,000 |
What is his Net wroth?
what is his liquidity ratio?
what is his savings ratio?
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Principles Of Managerial Finance
Authors: Chad Zutter, Scott Smart
16th Global Edition
1292400641, 978-1292400648
