Whalen_FIN1010_Exercises_Module3.docx - FIN1010 Exercises...

Info icon This preview shows pages 1–2. Sign up to view the full content.

FIN1010 Exercises Module 3 Jack Whalen 1. Good versus Bad Debt. Is there such a thing as good debt, what types of debt do you consider to be "good"? What types do you consider to be "bad"? I would consider a mortgage a good debt, because it allows the borrower to afford to own their home. Owning a home can also be less expensive than renting. Mortgages also offer the borrower many benefits, tax deductible interest payments, low interest rates, increased home value over time, and the borrower can tap into their equity should they ever want a loan. 2. Are you considered a default risk? How would a lender evaluate you based on "the five C's" of character, capital, capacity, collateral, and conditions? How could you plan to make yourself more attractive to a lender in the future? I would say that I am not considered a default risk. I have proven my character by making all my payments on time and often much more than the minimum amount due. I have the capacity to pay back any loans that I
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '17
  • Rosales
  • Finance, Debt, default risk, Versus Bad Debt, good debt, Jack Whalen

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern