The Simpsons’ fixed

expenses relative to net income after deductions (Fixed Expenses Coverage) is

closest to:

The Simpsons’ have

leveraged their equity position.  What

percentage of total assets is financed through their own equity? 

Use the following information to answer the 3 questions

below (questions 5-7): 

The Simpsons have a yearly

household income of $48,000 per year after deductions.

            Their

monthly expenses are as follows:

The Simpsons have the

following assets:

            The

Simpsons have debt as follows:

5. Based on the Simpsons’

monthly expenses coverage (short term debt servicing) ratio, they should be

able to pay bills for, approximately, how many months if they lose their income

sources:

Which

statement most accurately lists the five EIC’s (essential investment

considerations) according to the chapter?

               i.    Changes in the economy such as when interest rates rise

              ii.    Regulatory changes such as a new tax system for trust unit distributions

              iii.   Internal factors such as a new job or change in family structure

              iv.    Competitive behavior such as having a better car than the neighbors