Question
Santos and Cecilia have the following assets: Condo $104 000 Car 22 000 Furniture 14 000 Stocks 10 000 Savings account 5 000 Chequing account
Santos and Cecilia have the following assets:
Condo $104 000
Car 22 000
Furniture 14 000
Stocks 10 000
Savings account 5 000
Chequing account 1 200
Bonds 15 000
Cash 150
Mutual funds 7 000
What is the value of their liquid assets? What is the value of their household assets? What is the value of their investments?
Santos and Cecilia (from problem 10) have the following liabilities:air Market Value
Mortgage $81 000
Car loan 2 750
Credit card balance 165
Student loans 15 000
Furniture loan (6 months) 1 200
What are their current liabilities? What are their long term liabilities? What is their net worth?
Based on the information in problems 10 and 11, what is Santos and Cecilias current ratio? What is their liquidity ratio? What is their debt-to-asset ratio? Comment on each ratio. Assume that the couple incurs monthly living expenses in the amount of $2000 per month.
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Public Finance
Authors: Harvey S. Rosen
5th Edition
025617329X, 978-0256173291
