An investment opportunity having a market price

Assignment Help Business Management
Reference no: EM13990482

An investment opportunity having a market price of $1,000,000 is available. You could obtain a $750,000, 25-year mortgage loan requiring equal monthly payments with interest at 7.0 percent. The following operating results are expected during the first year.

Effective gross income ........... $200,000
Less operating expenses and CAPX ......... $100,000
Net operating income ............. $100,000

For the first year only, determine the:

a. Gross income multiplier
b. Operating expense ratio (including CAPX) 
c. Monthly and annual payment
d. Debt coverage ratio 
e. Overall capitalization rate 
f. Equity dividend rate

Reference no: EM13990482

Questions Cloud

Seasonally adjusted trend forecast : (a) Use Excel to develop a time series model that Hillstone can use to prepare seasonally adjusted trend forecasts of passenger vehicle tyre sales on a quarterly basis. (b) Prepare seasonally adjusted trend forecast estimates for 2012 and 2013 on a..
Moving average time series of company liquidations : (a) Use Excel to compute both a three-period and a five-period moving average time series of company liquidations. (b) Plot the original time series of company liquidations and the three-period and five-period moving average values on the same grap..
In which year would you say the team is doing better why : She wants to compare this year=s team scoring records to last year=s.Last year=s team had a standard deviation of 1.0 for goal scoring against, with a mean of 4.5. In which year would you say the team is doing better? Why
How much does she need to deposit now : Anne wants $15,000 in 5 years. If her savings account earns 6% a year, how much does she need to deposit now? a. $9,725.75 b. $11,208.87 c. $10,500 d. $12,317.51
An investment opportunity having a market price : An investment opportunity having a market price of $1,000,000 is available. You could obtain a $750,000, 25-year mortgage loan requiring equal monthly payments with interest at 7.0 percent.
Makes communications devices for military contracts : An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,300 devices and took 25 workers two weeks (40 hours per week) to complete. The army contract was for 5,5..
Health care system and absorbs a significant portion : The insurance industry plays a major role in the American health care system and absorbs a significant portion of the health care dollar. A single payer system, whether it is a private company or the U. S. government, would eliminate the complex insu..
What is the common-size percentage for the net income : Foreign Travel Services has net income of $48.400. total assets of $219,000. total equity of $154800, and total sales of $311,700. What is the common-size percentage for the net income? Healthy Foods has total assets of $129,800, net fixed assets of ..
Actual average settlement time : Estimate, with 95% confidence, the actual average settlement time (in days) for claims received by the Explorer Fund only. Interpret the result.

Reviews

Write a Review

Business Management Questions & Answers

  What is the reorder point

Demand for a popular athletic shoe is closely constant at 800 pairs per week for a regional division of a national retailer. What is the reorder point

  Identify absolute and comparative advantage of u.s.and japan

Identify absolute and comparative advantage of U.S. and Japan

  Pitfalls of job evaluation methods

Pitfalls of Job Evaluation Methods

  You must illustrate your answers with real examples showing

you must illustrate your answers with real examples showing evidence of research outside of the textbook.question

  Explain how an early childhood facility can meet the needs

Describe how an Early Childhood facility can meet the needs of families and still provide decent wages for teachers and administrators

  Calculate the total amount of revenue

Calculate the total amount of revenue (gross profit) that will be lost if the engraver breaks and is down for 18 business days. If the engraving business makes $975 per day in revenue and generates a net profit of 25%, how much profit is generated pe..

  Continuing with the business application system described

continuing with the business application system described from week two provide a description of how process

  Review background information

Review the case study on Acme Medical Data Storage LLC, given in the Scenario/Summary section above, paying careful attention to the characteristics of the company and its IS projects.

  Start-up stage of a business how do you decide whether

how do you decide whether youre better suited to be a serial entrepreneur start the business and move on to start

  Potential business report topic

Provide information relevant to the potential business report topic - Request information from an organization

  Explain what are the strategic implications

Explain What are the strategic implications of this decision for retailers such as Movie Theaters, Recreation Parks, and Fast Food Companies?

  What is the most important lesson from this case

Which of the 12 ways to embed organizational culture has IDEO used to create its current culture? Provide examples to support your conclusions.

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