Calculate a capitalization rate

Assignment Help Financial Management
Reference no: EM131555438

Calculate a capitalization rate using the following assumptions:

8-year Loan Term

25-year mortgage schedule

Equity yield rate is .12

GRM is 10

LTV .80

Annual future appreciation is 1.5%

Loan Interest Rate 9%

Net Operating Income $2,289,989

Expense Ratio 52%

SHOW ALL YOUR WORK IN DETAIL.

Reference no: EM131555438

Questions Cloud

Explain your patient education strategies for patients : Explain your patient education strategies for patients with or at risk of breast conditions. Describe the patient's personal and medical history.
Compute the new z-score on the target scale : The steps to perform that is to first compute the z-score in the original scale, and then transform it using the formula transform Standard Score.
Develop a shared vision with your stakeholders : What are some methodologies of communication you would use to develop a shared vision with your stakeholders?
Probability of getting a head : There is this coin that is not balanced. The probability of getting a head is four times the probability of getting a tail. Suppose this coin is tossed 5 times.
Calculate a capitalization rate : Calculate a capitalization rate using the following assumptions:
Find the expected value of the proposition : Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.
Discuss the given rlc circuit : (RLC circuit) The circuit in the figure consists of a resistor (R ohms), an inductor (L henrys), a capacitor (C farads), and an initial voltage source.
Calculate the arbitrage profit : Assume you have $5,000,000 with which to conduct the arbitrage. Calculate the arbitrage profit.
Analyze real-life data : Review problems which show how t tests can be used to analyze real-life data. Think about how you might answer each of the questions.

Reviews

Write a Review

Financial Management Questions & Answers

  Stock valuation methods zero-growth-constant growth

The stock valuation methods zero-growth, constant growth, variable growth, free cash flow, P/E multiple models, and book value method, to find out which is most accurate in regard to value to firms we would have to analyze each one individually.

  Depreciation is straight-line to zero over life of project

We are evaluating a project that costs $1,200,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 88,500 units per year. Calculate the best-case a..

  Computer-based order entry system-what is irr for project

Your firm is contemplating the purchase of a new $530,000 computer-based order entry system. what is the IRR for this project?

  Calculations indicates that the projects are equally risky

In calculating the risk associated with two potential projects (A & B), which of the following statistical calculations indicates that the projects are equally risky?

  Planning to save for retirement

You are planning to save for retirement over the next 35 years. To do this, you will invest $840 a month in a stock account and $440 a month in a bond account. The return of the stock account is expected to be 10.4 percent, and the bond account will ..

  Decides on changing the capital structure

What is the weighted average cost of capital (WACC) ? What is the WACC if the CFO decides on changing the capital structure to 60% debt and 40% equity? What happens to WACC if the capital structure changes to Debt 40% and 60% equity? What can you say..

  The bonds make semi-annual payments

Watters Umbrella Corp. issued 20-year bonds 2 years ago at a coupon rate of 6.4 percent. The bonds make semi-annual payments. If these bonds currently sell for 110 percent of par value, what is the YTM?

  Stock has required or expected rate of return

An investor desires to own a stock whose price moves no greater than 50% versus the overall market. Given that ABC stock has a required or expected rate of return of 15%, the average market return is 11% and the interest yield on 10-year US Treasury ..

  An optometrist sells custom-ordered eyeglasses

An optometrist sells custom-ordered eyeglasses. Assume the optometrist maintains no stock of lenses or frames (except for some sample frames to show customers), but custom orders everything from a manufacturer.

  What is a private equity firm

What is the agency problem between stockholders and managers and describe the data used by the researcher in the analysis.

  Calculate the return on investment

calculate the return on investment.

  Conventional benefit/cost ratio using annual worth values

Calculate conventional benefit/cost ratio using annual worth (AW) values. Calculate modified benefit/cost ratio using annual worth (AW) values.

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