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Tom and Jane have been reviewing their financial statements. Using the following information, they have asked you to determine their debt safety ratio and advise
Tom and Jane have been reviewing their financial statements. Using the following information, they have asked you to determine their debt safety ratio and advise them about assuming more debt in the future. Assets $53.750 Monthly take-home income 3.800 Monthly mortgage payment 900 Monthly credit payments 300 Monthly loan payments 500 O A. Tom and Jane have a debt ratio that is very low and would easily be approved for more loans from a bank. O B. Tom and Jane have a debt ratio around the danger range and should wait before considering more debt OC. it is impossible to tell what they should do based on the facts given. OD. Tom and Jane should declare bankruptcy. O E. As long as Tom and Jane have a good credit rating, they can borrow more money
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