Calculate the propertys annual debt coverage ratio

Assignment Help Financial Management
Reference no: EM131972270

I'm thinking about the desirability of buying a retail shopping center for $5.5 million. The net operating income for the center during the first year is expected to be $489, 500.

I've applied for a $4,000,000 loan to make the purchase, the terms of which are a 9.25 percent fixed rate amortized monthly over 25 years with a 7-year term.

What will be the property's annual debt coverage ratio in its first year of operation?

Reference no: EM131972270

Questions Cloud

Outstanding and uses cumulative voting : If the firm has 387,500 shares of stock outstanding and uses cumulative voting
Prepare whatever journal entries are appropriate : Prepare whatever journal entries are appropriate at 13 September 20X1, 31 December 20X1, 25 February 20X2, 5 March 20X2, and 31 March 20X2.
How many dollars worth of sales are generated from every : How many dollars worth of sales are generated from every $1 in total assets?
How much money needs to be set aside each year to replace : A machine costs $20,000 today and has an estimated scrap cash value of $2000 after 8 years. Inflation is 8% per year.
Calculate the propertys annual debt coverage ratio : I've applied for a $4,000,000 loan to make the purchase, the terms of which are a 9.25 percent fixed rate amortized monthly over 25 years with a 7-year term.
What is the cash coverage ratio : Sales of $4,650, costs of $2,450, interest paid of $160, and depreciation of $455. The tax rate is 35 percent. What is the cash coverage ratio?
What is the value of the portfolio in one year : Madeline Manufacturing Inc.'s current stock price is $35 per share. Call options for this stock exist that permit the holder to purchase one share.
Test for the significance of all possible effects : Test for the significance of all possible effects - The data in Table 7 shows one observation per each of the 8 combinations
What is the bond coupon rate : 15-year, semiannual coupon bond sells for $942.01. The bond has a par value of $1,000 and a yield to maturity of 7.17 percent. What is the bond's coupon rate?

Reviews

Write a Review

Financial Management Questions & Answers

  After transferring the funds back-what was investor return

After transferring the funds back to the United States, what was the investor’s return on her $290,000?

  What is the equity multiplier

Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 10,050 Less: Cost of goods sold 7,700 Less: Depreciation 395 Earnings before interest and taxes $ 1,955 Less: What is the equity ..

  What has happened to the bank equity and leverage

Assume that an investment bank is at its maximum desired leverage of 20: it has $10mil of its own equity (net worth) and has borrowed $190mil to buy assets of $200mil. The price of the bank's assets falls and reduces their mark-to-market value to $19..

  The lowest cost source of funds to a company from among

The lowest cost source of funds to a company from among the following is

  What is the risk-neutral probability that the stock price

A stock price is currently $100. Over each of the next two six-month periods it is expected to go up by 12% or down by 6%. The risk-free interest rate is 5%. What is the risk-neutral probability that the stock price will increase each period? (Report..

  Consumer reports the loss before the card is used

If a consumer reports the loss before the card is used, the consumer: ______.

  What is the discounted payback period if discount rate

An investment project costs $10,000 and has annual cash flows of $2,950 for six years. What is the discounted payback period if the discount rate is zero percent? Discounted payback period years What is the discounted payback period if the discount r..

  Yield on equities in market relate to equity risk premium

How does the dividend yield on equities in the market relate to equity risk premium?

  How the hmo can use its capital funds

What issues would you want to alert the hospital board to concerning whether this is a permissible venture, and how the HMO can use its capital funds?

  Should barry complain about his treatment

Should Barry complain about his treatment? To whom? If he did complain, what power tactics should Barry use? Studies have shown that those prone to complaining tend to have less power in an organization. Do you think complaining leads to diminished ..

  What should the current price be

A bond with a $10,000 par value has an 7.25% coupon rate. What should the current price be?

  Determine cash collected from customers by jones corporation

Determine the cash collected from customers by Jones Corporation in 2011.- Comment on why cash collected from customers differed from sales.

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