Mortgages

Capital Investment. Erom the viewpoint of a project, all of the capital that must be raised is external capital. Equity capital is the ownership capital, eg, common and preferred stocks or retained cash, whereas debt capital consists of bonds, mortgages, debentures, and loans. Nearly all investment involves a mixture of both types so as to maximize the return on investment (21). The debt ratio (debt/total capital) for the chemical industry is typically over 30%. Because financial details are not well known during the preliminary phases of project analysis, the investment is viewed simply as the total capital that must be expended to design and build the project. 

Debt Financing In practice, debt financing covers a variety of fixed-income securities, both long-term and short-term. The most common forms of long-term debt are bonds, mortgages, and debentures. 

A mortgage is a bond in which specific real assets are pledged as security. A senior mortgage has a prior claim on assets. A junior mortgage is normally a second mortgage on the residual value of the assets. A blanket mortgage is a pledge on all real property owned by a company. 

Only the actual inventor may apply for a patent (utility, design, or plant patent). Once a patent has been obtained, the patent can be sold or mortgaged. Also, the owner of a patent may assign part or all interest in the patent to another individual or a company or other business entity. The owner of a patent may also grant licenses to others (either individuals or business entities) to make, use or sell the invention. 

The value of r is found by trial-and-error calculations. Finding the discount rate that just pays off the project investment over the project s life is analogous to paying off a mortgage. The more profitable the project, the higher the DCFRR that it can afford to pay. 

Engineering Interface Limited, 1982. Feasibility Study Project FREECOOL, prepared for Canada Mortgage and Housing Corporation, Ottawa, April, 74 p. + 35 figs. 

Same values of the denominator are given in Tables 10-7 and 10-8. These are used in Example 10-10 to determine the yearly and monthly payments for a mortgage. 

You wish to borrow 20,000 to build a home. The bank offers you a 20-year mortgage at 8% compounded monthly. What is your monthly payment What is the total interest that will be paid over 20 years Repeat the calculation for a IO-year and 30 year mortgage (note that the above is standard wording for the nominal interest). 

A 15-year fixed-rate mortgage with annual payments saves you nearly 60 percent of the total interest costs over the life of the loan compared with a 30-year fixed-rate mortgage. 

Next, Figure B.9 represents a simplified cash flow statement for a retail computer store. The bottom number in the statement does not represent profit (income, earnings)—just the net of the cash flows, because the 30,000 mortgage payment... 

The reconciliation between the cash flow statement and the income and expense statement is as follows. Start with the 40,000 from the last line in the cash flow statement, subtract 20,000 for the depreciation expense, and add back the 30,000 mortgage loan principal payment (not an allowed expense). The result is the net after-tax earnings. Figure B.ll is a set of statements from a small oil company. The statement of operations lists revenue and expenses, whereas the balance sheet lists various assets, liabilities, and stockholders equity ( net worth ). So-called capital items such as buildings, equipment, oil and gas property, and various intangibles are assets. Operating costs are deductions from revenues for operations not including expenditures for capital items. 

Interest paid on loans and mortgages is usually segregated from other expenses. 

Debt Consolidation Mortgage Refinance Team Building... 

As Marc Shell notes, however, hypothesis is inherently bound up with money. To make a hypothesis is to ask for credit that may be called in later, when a conclusion is reached and meaning exhausted. When Plato criticized the sophists, he simultaneously expressed anxiety about coinage—that is, as a division between symbolic and material value Was not even Socratic dialectic. . . pervaded by the monetary form of exchange Was not dialectical division a kind of money changing, and dialectical hypothesizing a kind of hypothecation, or mortgaging (Shell 2). 

Bernard s relatives in Treves considered him mad and would have nothing to do with him, so he decided to retire to the island of Rhodes and live there in modest circumstances. But then the inevitable happened. Bernard met a monk who was as enthusiastic as he was about learning the secret of transmutation. However, neither of them had the funds to buy the materials needed to carry out alchemical experiments. Bernard mortgaged what remained of his Italian estates, and once again he set to work. He worked with the same obsession as before and lived, slept, and ate in his laboratory. Even when he had exhausted the last of his money, he continued his quest, reading and rereading alchemical works. 

E. Income projections (profit and loss statements) for multiple years sales, fixed costs (mortgage, loan interest, depreciation, rent, taxes, insurance, advertising, salaries, benefits), variable costs (cost of material, hourly... 

DCFR values are an estimate of a projects earning potential. Obviously the higher the DCFR of a project then the more attractive it is. The minimum acceptable DCFR value is the value that equals the companies required rate of return. The DCFR can be thought of as a mortgage rate such that if a project repays interest to its investors at a rate equal to the projects DCFR then the project will break-even at the end of its life, and the mortgage will be paid off. 

Thank you for taking the time to speak with me about your recent experience with American Mortgage Company. You mentioned a number of errors that occurred during the processing of your mortgage loan. It is our intention to provide a worry-free process to our customers. 1 assure you that the service you received is not typical of what we provide. Please accept my apology for the problems. 

Again, thank you for your comments and for choosing American Mortgage Company for your loan. We will be working hard over the life of your loan and hope you will be pleased with our service in the future. We value your business and want to keep it. 

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