Which of the Following Is False with Regard to Mortgages

question 154

Multiple Choice

Which of the following is false with regard to mortgages on land?

• A)The right to foreclose is a remedy from the court of equity that allowed the mortgagee the right to end the mortgagor's equitable right to redeem the property after default.
• B)If the borrower (the mortgagor)is paying and otherwise honouring the terms of the mortgage,he is entitled to no interference with his use of the property by the mortgagee.
• C)The courts of equity have given the borrower (mortgagor)the right to redeem his property even after default if he makes the appropriate payments.
• D)A mortgage is a contract between a lender and a borrower that provides that the borrower not only gives the lender his promise to pay but also grants the lender title to his real property to hold as security.
• E)A second or third mortgagee is not affected if the first mortgagee obtains an order of foreclosure.

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Definitions:

Earnings per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Dividend Payout Ratio

The portion of net income distributed to shareholders in the form of dividends, expressed as a percentage of the company's total net income.

Book Value per Share

A financial measure that indicates the theoretical value per share of a company if it were to liquidate, calculated by dividing total equity by the number of outstanding shares.

Price-earnings Ratio

A valuation metric for companies, calculated by dividing the current market price of a stock by its earnings per share (EPS).