### Should the new lease be accepted

Assignment Help Finance Basics
##### Reference no: EM13280477

A store has 5 years remaining on its lease in a mall. Rent is \$2,000 per month, 60 payments remain, and the next payment is due in 1 month. The mall's owner plans to sell the property in a year and wants rent at that time to be high so that the property will appear more valuable. Therefore, the store has been offered a "great deal". on a new 5-year lease. The new lease calls for no rent for 9 months, then payments of \$2600 per month for the next 51 months. The least cannot be broken, and the stores WACC is 12%.

a. Should the new lease be accepted?

b. If the store owner decided to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and old leases?

c. The store owner is not sure of the 12% WACC. At what nominal WACC would the store owner be indifferent between the two leases?

Could you please provide work for these solutions.

#### Value of the stock climbs

You invest \$5000 in Apple stock (10 shares at \$500 per share). At the end of a year, the value of the stock climbs to \$550 per share. (Apple probably introduced yet another

#### Which of three s and ls would have achieved best performance

Assume that interest rates declined consistently over the last year. - Which of the three S&Ls would have achieved the best performance based on this information? Explain.

#### What is the annual rate of return on this stock

Will has been purchasing \$25,000 worth of New Tek stock annually for the past 11 years. His holdings are now worth \$598,100. What is the annual rate of return on this stock?

#### Determine the cost of giving up the cash discount

Determine the cost of giving up the cash discount under each of the following terms of sale. (Note: Assume a 365-day year.) a. 2/10 net 30 b. 1/10 net 30 c. 2/10 net 45 d. 3/1

#### How the beta of a portfolio can equal the market beta

Explain how the beta of a portfolio can equal the market beta if 50 percent of the portfolio is invested in a security that has twice the amount of systematic risk as an ave

#### The invention of the printing press

Before the invention of the printing press, books were copied by hand one at a time by illuminators, and the vellum was often embellished with beautiful calligraphy and intr

#### Perform the one-period valuation model analysis on the stock

Select a large company that is publicly traded and pays a dividend. Provide a recent price quote on the common stock of the company, and then perform the One-Period Valuation

#### Calculate the price-value of each share in the firm

You own one share in a company called Invest Co. Inc. Examining the balance sheet, you have determined that the firm has \$100,000 cash, equipment worth \$900,000, and 100,000 s