Elucidate how would you price these two events differently

Assignment Help Business Economics

Reference no: EM1354361

You are a hospital administrator trying to raise capital to refurbish the hospital. Your local bank is reluctant to lend to you because you already have a large mortgage on the property on which the hospital complex lies. But your bankers tell you that they can lend you more if you reduce your debt by selling your parking lot to some private investors who'll lease it back to you for the next 50 years. And you'll have to renegotiate the price of the lease every 5 years. What concerns might you have about this sale- and- lease- back contract?

Suppose your parking lot has two different consumers who use it at two different times. Daily commuters use it during the daytime, and sports fans use it at different times to park at sporting events. Daily commuter demand is variable, yet stable and known. Demand for sporting events is uncertain, and depends on the quality of the match, as well as on unpredictable events, like the weather. How would you price these two events differently?

Reference no: EM1354361

Questions Cloud

Organizational goals and programs or policies : Discussion On Organizational Goals And Programs and Policies - Propose how you would determine if a performance management system aligns with the organizational goals of a company.

Determine the value of each bond : An investor has 2 bonds in his portfolio that have a face value of $1000 and pay a 10% yearly coupon. Bond L matures in 15 years, while bond S matures in oine year.

Powers of federal reserve bank : What are the powers of the Federal Reserve Bank in controlling the nation's money supply? Among the powers, which has the most impact? Which powers are used least often?

Explain devised a regression model to help : Explain devised a regression model to help determine residential housing prices in South Alabama

Elucidate how would you price these two events differently : Demand for sporting events is uncertain, and depends on the quality of the match, as well as on unpredictable events, like the weather. Elucidate how would you price these two events differently.

Find the forecasted levels of balance sheet : EEM, Corporation has the following balance sheet, It has determined the following relationships between sales and the various assets and liabilities that vary with the level of sales.

Type of embezzlement scheme : The auditor of a bank is called to a meeting with a senior operations manager because of a customer's report that an auto load payment was not credited. According to the customer, the payment was made at a teller's window using a check drawn on a ..

Describe about organizational risk : Explain what is your definition of socially responsible risk management and how would you go about enacting a more socially responsible risk management strategy in your current workplace?

Concept of sigmund freud theory : The classic theorists known as Sigmund Freud outline the basic concepts of his theory.

User Account

All Pages