Question
Robert Sampson owns a townhouse valued at $140,000 and still has an unpaid mortgage of $110,000. In addition to his mortgage, he has the following
Robert Sampson owns a townhouse valued at $140,000 and still has an unpaid mortgage of $110,000. In addition to his mortgage, he has the following liabilities:
| Visa | $ | 565 | |
| MasterCard | 480 | ||
| Discover card | 395 | ||
| Education loan | 920 | ||
| Personal bank loan | 800 | ||
| Auto loan | 4,250 | ||
| Total | $ | 7,410 | |
Roberts net worth (not including his home) is about $21,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property.
a. What is Roberts debt-to-equity ratio? (Round your answer to 2 decimal places. Do not use the % sign-just decimal places)
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Reinventing The CFO How Financial Managers Can Transform Their Roles And Add Greater Value
Authors: Jeremy Hope
1st Edition
1591399459, 978-1591399452
