How much equity can I cash out?

Open in App

Solution

Most money lenders and banking institutions are applicants to cash out 80 percent to 85 percent of the appraised value of the house. The sum percentage of a loan varies from one lender to another.

Also see:

What Are Equity Shares?

Difference Between Venture Capital and Private Equity

Suggest Corrections

Similar questions

Q. Debt to Equity Ratio of a company is 0.5:1. Which of the following suggestions would increase, decrease or not change it:

(i) Issue of Equity Shares:	(ii) Cash received from debtors:
(iii) Redemption of debentures;	(iv) Purchased goods on Credit?

Q. Assuming That the Debt to Equity Ratio is 2 : 1, state giving reasons, which of the following transactions would (i) increase; (ii) Decrease; (iii) Not alter Debt to Equity Ratio:

(i) Issue of new shares for cash.
(ii) Conversion of debentures into equity shares
(iii) Sale of a fixed asset at profit.
(iv) Purchase of a fixed asset on long-term deferred payment basis.
(v) Payment to creditors.

Q. Equity dividend paid should be classified as cash flow from activities.

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Sale of a fixed asset (book value Rs. 15,000) at a loss of Rs. 5,000
(ii) Cash received from Trade Receivables Rs. 9,000 and allowed discount Rs. 1,000.
(iii) Cash paid to Trade Payables.
(iv) Shares issued for Cash.
(v) Buy- back of Equity Shares.

Q. Debt equity ratio is 0.5:1. Purchase of machinery for cash will decrease or increase the ratio?

Join BYJU'S Learning Program

How much equity can I cash out?

Most money lenders and banking institutions are applicants to cash out 80 percent to 85 percent of the appraised value of the house. The sum percentage of a loan varies from one lender to another. Also see: What Are Equity Shares? Difference Between Venture Capital and Private Equity

Most money lenders and banking institutions are applicants to cash out 80 percent to 85 percent of the appraised value of the house. The sum percentage of a loan varies from one lender to another.

Also see:

What Are Equity Shares?

Difference Between Venture Capital and Private Equity