Equity requirement-what is the value of a property

Assignment Help Financial Management

Reference no: EM13763920

If the equity requirement is 12 percent and a mortgage can be obtained for 25 years at 7 percent. If the loan to value ratio is 70 percent (equity is 30 percent), what is the value of a property that generates $125,000 in net operating income.

Reference no: EM13763920

Questions Cloud

Option pricing model is employed to estimate the fair value : On January 1, 2008, PWC awarded stock options to two of its top managers, Price and Waterhouse. Price received options to purchase 25,000 shares of PWC $1 par common stock at an exercise price of $10/share. Waterhouse received 15,000 options to purch..

What is the after tax cash flow : Rocky Top, Inc. purchased some welding equipment six years ago at a cost of $579,000. Today, the company is selling this equipment for $110,000. The tax rate is 35 percent. What is the after tax cash flow from this sale? The MACRS allowance percentag..

What is the best estimate of the stocks current market value : Burke Tires just paid a dividend of D0 = $2.50. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the..

Equity requirement-what is the value of a property : If the equity requirement is 12 percent and a mortgage can be obtained for 25 years at 7 percent. If the loan to value ratio is 70 percent (equity is 30 percent), what is the value of a property that generates $125,000 in net operating income.

Real time value of money : The company where Sally works pays higher base salaries (currently worth an additional $11,000/year) to graduates with Masters Degrees compared to a Bachelor’s Degree. Over a 40 year career, what is the Masters Degree worth to Sally, assuming a 4% re..

Single parent and motivational training consultant : Michael Margolis is a single parent and motivational training consultant from Reno, Arizona. He is wondering about potential returns on investments given certain amounts of risk. Michael invested a total of $6000 in three stocks ($2000 in each) with ..

What is the equivalent taxable yield : For a municipal bond paying 3.4 percent for a taxpayer in the 25 percent tax bracket, what is the equivalent taxable yield?

Market price-comparable market interest rates drop : What is the market price of a $1000, 8 percent bond if comparable market interest rates drop to 6 percent and the bond matures in 15 years?

User Account

All Pages