Generated during the first year of operations

Assignment Help Risk Management
Reference no: EM131207285

You have worked as a real estate agent for 10 years and are earning about $100,000 per year with your current agency. You prepared the following information to use in evaluating the financial feasibility of starting your own agency:

Revenues generated during the first year of operations: $1.5 million

Salaries and other labor costs paid to employees during the first year of operations: $1 million

Operating expenses (e.g., rent, communications: $150,000

Equipment purchases: $100,000 with a 5 year straight line depreciation

You need $100,000 in equity, which you can withdraw from your bank account that is currently paying 2% per year in interest, and a $400,000 loan with a 15% interest rate.

What is your expected pretax economic profit from your proposed agency?

Reference no: EM131207285

Questions Cloud

Overall strategy for entering the country : Country evaluation should focus on economic, financial and political risk of the country. Industry structure analysis would look at the regulatory structure as well as the competition in the target country. Issues such as privatization, identifica..
Explain when a victim character is at issue at trial : What are the three types of discovery the defendant can obtain from the prosecution under Federal Rule of Criminal Procedure 16, and which type is granted reciprocal discovery?
Find the total impedance zt in polar form : Find the total impedance ZT in polar form. -  Draw the impedance diagram. -  Find the current I and the voltages VR and VL in phasor form.
What are some examples of this conflict in our past : In a 2 page paper, using APA formatting, discuss the line between an individual's right to expression and the role of the government to protect its citizens from harm? What are some examples of this conflict in our past? Have we come any closer to..
Generated during the first year of operations : You have worked as a real estate agent for 10 years and are earning about $100,000 per year with your current agency. You prepared the following information to use in evaluating the financial feasibility of starting your own agency: Revenues gener..
Evaluate the performance of bmw in the profitability : Evaluate the performance of BMW in the following areas, using ratio analysis: Profitability and Liquidity/Solvency
Supply and demand for personal computers : Suppose there is an increase in both the supply and demand for personal computers. Further, suppose the supply of personal computers increases more than demand for personal computers. In the market for personal computers, we would expect
Prepare two page brief highlighting the issues of relevance : As you continue your case preparation for trial, what Rules of evidence apply to the admissibility of photographic, audio, and/or video evidence that you wish to present. Prepare a 2 page brief highlighting the issues of relevance, foundation, au..
Find the average power delivered to the circuit : Draw the phasor diagram of the voltages E, VR, and VL, and the current I. - Verify Kirchhoff's voltage law around the closed loop. - Find the average power delivered to the circuit.

Reviews

Write a Review

 

Risk Management Questions & Answers

  Define risk management strategy and plan

Develop the outline of the sections that will be included in the "Risk Management Strategy and Plan" document and a draft of a proposal

  Describe one plausible risk response for each of the risks

Describe one plausible risk response for each of the risks. Identify a team member to be responsible for monitoring each risk. Determine if each risk should be classified as low, medium, or high based on its impact to the project.

  Identify the components of risk management programs

Identify the components of risk management programs. You are the Director of Risk Management at a new physician owned hospital. The Chief Operations Officer has assigned you the task of benchmarking outcomes for adverse events

  What is the price sensitivity hedge ratio

What is the price sensitivity hedge ratio? How are the price sensitivity and minimum variance hedge ratios alike? How do they differ?

  A portfolio manager holds a bond portfolio worth 10 million

a portfolio manager holds a bond portfolio worth 10 million with a modified duration of 6.8 years to be hedged for

  Explain how effective firm credit risk analysis

Explain how effective firm credit risk analysis and portfolio risk analysis ensure efficient credit risk management. Theoretical Bank Ltd is conducting credit risk analysis of two new customers (i) XYZ & Co Ltd and (ii) ABCD & Co Ltd.

  Determining the federal expenditures-revenues

The following table lists federal expenditures, revenues, and GDP for the U.S. economy during several years. All numbers are in billions of dollars.

  Problem 1 investing in the stock marketjohnson and johnson

problem 1. investing in the stock marketjohnson and johnson jnj is trading at 68.15. jnj is a large health care

  Proposed application of risk management process

Proposed Application of Risk Management Process to insert your critical infrastructure or key resource (CIKR) site. Summarize the 7 steps outlined in this document and draft brief policy requirements.

  1 wellner systems has the following balance sheethow much

1 wellner systems has the following balance sheet.how much net operating working capital nowc does the firm have?cash

  Principles of risk management

his Section was covered in Principles of Risk Management. You are not being quizzed on this section, nor do you have homework on it - BUT - there could be exam questions from it, so don't forget to review

  How might you categorize different operational risk events

As the head of operational risk for your bank, how might you categorize different operational risk events? How might a conversation with the head of capital markets go with regard to their RCSA?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd