Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Cost Minus Co. wants to buy a 580,000-square-foot distribution facility in the outskirts of the city of Boring, OR. The subject facility is presently renting for $4 per square foot per year. Based on recent market activity, two properties have sold within a several-mile distance from the subject facility and are very comparable in size, design, and age. One facility is 550,000 square feet and is presently being leased for $3.80 per square foot annually. It sold just a few days ago and is in very close proximity to the subject, which makes it twice as important in determining the subject’s value as the second comp. The second facility contains 600,000 square feet and is being leased for $3.50 per square foot annually. Market data indicate that current vacancies and operating expenses combined should run approximately 60 percent of gross income for these facilities, as well as for the subject. The first facility sold for $8.5 million, and the second sold for $9 million.
a) Using the direct capitalization rate approach, how would you estimate the current value for the subject distribution facility? Calculate and explain.
b) What are some of the flaws associated with using this approach to estimate the value of the subject property?
What would the APR be if it is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20?
With respect to preferred stock, if a dividend is missed and must be paid at a later date before CS dividends are paid, it is:
What are the changes in Net Working Capital and when will they occur? Is there any salvaging here? When does salvage occur and what is the effect on cash flow?
Loan is paid by making a single payment of principal and interest at the end of the loan period. Calculate the Present worth after tax.
An investor has put money in four stocks in the dollar amounts indicated and with betas specified. What is the portfolio beta?
How low would the interest rate on the loan with the compensating balance have to be for you to choose it?
What is the maximum share price do you think Kellog should to pay for Major foods stock.
A convertible bond gives the investor the right to convert a corporate bond with a face amount of $1000 into a specific number of shares of stock. Since the conversion will increase the number of shares and dilute the ownership percent of each shareh..
Cooke Co. is comparing two different capital structures. Plan I would result in 8,500 shares of stock and $361,000 in debt. Plan II would result in 12,000 shares of stock and $228,000 in debt. The interest rate on the debt is 10 percent. What is the ..
find out how many of each of these four Treasury bonds fund should buy in order to fully fund liability and be immunized against interest rate risk right now.
Explain why investors’ degree of risk aversion does not play a role in determining the optimal risky portfolio.
Applying the appropriate analytical tools to case data, both quantitative and qualitative. For some cases, root cause analysis will be used to examine symptoms
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd