User Account

All Pages

What release price should the lender charge

Assignment Help Accounting Basics
Reference no: EM133138816

Question - Suppose that you are seeking to purchase a 15-acre lot with the intention of subdividing the lot and building 30 houses on the lot. You anticipate the purchase price of the parcel will be $150,000 per acre with an additional $50,000 per acre in site development costs. You estimate that your construction costs will be $175,000 per house. You expect to sell 5 houses per month beginning in month 7.

A lender is willing to provide you with a development loan for 80% of the total project costs. The proceeds of the loan will be dispersed in 5 equal draws that will take place at closing and during months 1-4. The lender will charge an origination fee equal to 1% of the total loan amount.

Required - What release price should the lender charge in order to receive a 15% annual yield from this loan?

Reference no: EM133138816

Questions Cloud

Explain the voluntary turnover : If an employee remains with the organization but moves to another division, do you count this move as a voluntary turnover?
Influence an organization approach to hrm : What do you think are the key contextual variables that influence an organization's approach to HRM? Which are the most important and why?
What is the max price a can pay for b without overpaying : A's WACC is 6% & B's WACC is 8%. Suppose Firm A finances the acq. of B with cash. What is the max price A can pay for B without overpaying
Design od intervention through leadership development : Need to design a OD intervention through leadership development and other training activities. Please help in a detailed plan to achieve the following:
What release price should the lender charge : The lender will charge an origination fee equal to 1% of the total loan amount. What release price should the lender charge
Diversity strategy focused on cald people : Research an organisation that is focusing on an inclusion diversity strategy focused on CALD people - Can you think of examples of racism
Calculate the roi for each of the three distribution channel : Ivanhoe Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Calculate the ROI for each
Services marketing strategy : Select any company in the luxury services field, and analyse its services marketing strategy Promises made, how, to which segment (s),
Explore implicit biases that you may have : Explore implicit biases that you may have (noting the limitations of this type of test). You do not have to share your results unless you choose too

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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