x
Info
x
Warning
x
Danger
 / 
 / 
 / 
9. Leverage Aa Aa Last year Alex bought a house

Question : 9. Leverage Aa Aa Last year Alex bought a house : 1261

9. Leverage Aa Aa Last year Alex bought a house in Atlanta for $900,000. Suppose that Alex paid $225,000 as a down payment and took out a mortgage loan of $675,000 to cover the remaining amount. Alex's simple leverage ratio is Suppose that the price of the house rises by 2%. If Alex sells his house now, his capital gain will be (Note: Ignore selling costs and maintenance.) in Alex's equity. A 2% rise in the price of the house causes a percentage gain of

 

Solution
5 (1 Ratings )

Solved
Finance 1 Year Ago 153 Views
This Question has Been Answered!
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
275782 Finance Questions Answered!
Post a Question