Learning Goal: I’m working on a business question and need the explanation and answer to help me learn.
In this discussion question, we look at an example that applies to both, individuals, such as ourselves, and companies. We will assume that we own a piece of real estate. This may be our primary residence, a rental property that we may have acquired, or a production facility or warehouse that the company may own. The vast majority of individuals that purchase a residence use mortgage financing. In our case lets assume that we checked the market value of the residence and it is $300,000. We also look at our mortgage statement and see that we still owe the mortgage company $200,000, which means our equity in this home is $100,000, half of what we owe to the bank. In financial terms that means our debt-equity ratio is 2. I have Viewpoint A
You are a company manager and this is a business property (production facility or warehouse).
Must be 2 paragraphs with in-text ciations and plagiarism free
