Reference no: EM131164863
Original Answers: Checked for Plagiarism
You are considering the purchase of a quadruplex apartment building. Effective gross income during the first year of operations is expected to be $33,600 ($700 per month per unit). First-year operating expenses are expected to be $13,440 (at 40 percent of EGI). Ignore capital expenditures. The purchase price of the quadruplex is $200,000. The acquisition will be financed with $60,000 in equity and a $140,000 standard fixed-rate mortgage. The interest rate on the debt financing is 8 percent and the loan term is 30 years. Assume, for simplicity, that payments will be made annuallyand that there are no up-front financing costs.
a. What is the overall capitalization rate?
b. What is the effective gross income multiplier?
c. What is the equity dividend rate (the before-tax return on equity)?
d. What is the debt coverage ratio?
An office building is purchased with the following projected cash flows:
• NOI is expected to be $130,000 in year 1 with 5 percent annual increases.
• The purchase price of the property is $720,000.
• 100 percent equity financing is used to purchase the property.
• The property is sold at the end of year 4 for $860,000 with selling costs of 4 percent.
• The required unlevered rate of return is 14 percent.
a. Calculate the unlevered internal rate of return (IRR).
b. Calculate the unlevered net present value (NPV).
Expansionary monetary policy involves
: Expansionary monetary policy involves the Federal Reserve injecting money into the economy so the banking system can make more loans and thus increase the money supply even more. The Federal Reserve injected a huge amount of money into the economy in..
|
Write a substantive
: Write a substantive 2000 word Word Doc comparison of the three methodologies below using at least 3 tables with each table comparing the three methodologies in one or more domain. Word count is in addition to words used in table.
|
What power can the project manager exert
: What power can the project manager exert as interpersonal influences? How effective are these powers and what are their limitations?
|
Most likely impact to profitability of such convergence
: Suggest the substantive manner in which the company could create a convergence between the interests of stockholders and managers. Indicate the most likely impact to profitability of such a convergence. Provide two (2) examples of instances that supp..
|
Calculate the unlevered internal rate of return
: Calculate the unlevered internal rate of return (IRR). Calculate the unlevered net present value (NPV). What is the equity dividend rate (the before-tax return on equity)?
|
Mapping the process of innovation
: Please complete the following. No Plagarism, include references (not internet references). APA format Write a 3+ page, double-spaced essay regarding: Mapping the Process of Innovation
|
Explain the analysis the china stock market
: Explain the Analysis the china stock market: testing weak-form efficiency between 2005 and 2015. To examine Chinese market efficiency, the data used in this study are daily price index data for Chinese stock exchanges in Shanghai and Shenzhen.
|
Deception allowable in healthcare research
: In particular, under what circumstances, if any, is deception allowable in healthcare research?
|
Major reasons for government involvement in market economy
: Determine whether or not government regulation to ensure fairness in the low-calorie, frozen microwavable food industry is needed. Cite the major reasons for government involvement in a market economy. Provide two (2) examples of government involveme..
|