Land for to break even with your opportunity cost rate

Assignment Help Financial Management
Reference no: EM13850580

You pay 1000 per acre for a tract of land and your opportunity cost is 7 percent. You hold the land 8 years and pay 100 in taxes each year. What price per acre must you sell the land for to break even with your opportunity cost rate?

Reference no: EM13850580

Questions Cloud

Conduct a thorough and well-argued analysis : Conduct a thorough and well-argued analysis that provides evidence that one of your chosen companies does have a strong strategic-intent posture - explain the strategic implications of your analysis and speculate on what this strong strategic inte..
Weighted-average cost of capital at new capital structure : Whispering Pines, Inc. is all-equity-financed. The expected rate of return on the shares is 12%. Calculate the opportunity cost of capital for an average-risk Whispering Pines investment. Calculate the company’s weighted-average cost of capital at th..
Objectives of several organisations : Strategy and Sustainability- The Expression of Organisational Values and Vision - Examine the mission, vision and objectives of several organisations and select the company that best meets the requirements described.
Concerned about the wisdom of perpetuating : 35-year old Ennio Fellini is the proud CEO of Leatherine Inc., an Italian, family-owned, Naples-based company employing 500 employees and supplying top quality leather to high-end European brands of handbags and shoes.
Land for to break even with your opportunity cost rate : You pay 1000 per acre for a tract of land and your opportunity cost is 7 percent. You hold the land 8 years and pay 100 in taxes each year. What price per acre must you sell the land for to break even with your opportunity cost rate?
What was the annual percentage increase : The value of a house is estimated to be 80000 today, if it has increased in value by 7 percent per year for the last 10 years, what was the value 10 years ago? If the house had increased in value by 48 percent over the total 10=year period, what was ..
What interest rate would a firm have to promise debt : What interest rate would a firm have to promise debt holders to make an investor indifferent between holding debt or shares in the company? How does the return to equity owners change with the proportion of the investment that is provided by debt? Th..
Implicit costs in measuring firms profitability : Some major companies live and die by EVA. For example, at General Electric, more capital is allotted only to divisions that pass the EVA threshold and divisions that regularly flunk are sold off. It’s a simple, but powerful, approach that looks at a ..
N periods and the present value of unique payment : Under an effective interest rate of 5%, the sum of the present value of an annuity which pays $4 at the end of each period for n periods and the present value of a unique payment of $100 at the end of the nth period is equal to the sum of the present..

Reviews

Write a Review

Financial Management Questions & Answers

  What was the fund turnover

A mutual fund sold $36 million of assets during the year and purchased $32 million in assets. If the average daily assets of the fund were $96 million, what was the fund turnover?

  Discuss the various types of healthcare financing options

Therefore, discuss the various types of healthcare financing options for the for-profit and not-for-profit healthcare organizations. Next, add-in the advantages/disadvantages for each, but first from the investor's perspective, and then from the issu..

  Calculate the bond equivalent rate on fed funds

If the overnight Fed funds rate is quoted as 3.20 percent, what is the bond equivalent rate? Calculate the bond equivalent rate on Fed funds if the quoted rate is 4.70 percent.

  How would you advise the company to handle the repatriation

Determine the spot and 12-month forward exchange rates, and determine any change in the ROS repatriated in 12 months based on exchange rates versus the current forecast.

  What is the current dividend yield

The expected dividend payment next year of Extra Bounty Corporation will be $5.00 per share and expected to grow at a constant rate of 3.5% indefinitely. The investors require a rate of return of 8.25% on this stock. How much would you pay for this s..

  Interest compounded monthly

Linda borrows $18,500 from the bank at 12% APR interest compounded monthly to be repaid in 36 equal monthly instalments. What is her monthly payment? What is the interest paid in the first month? What is the principal paid in the first month?

  Analyze two mutually exclusive projects-payback criterion

Your task is to analyze two mutually exclusive projects: Using the payback criterion, explain which investment should you chose? Using the discounted payback criterion, explain which investment should you chose? Using the NPV criterion, explain which..

  Jessica alba a famous actress starts the baby and family

jessica alba a famous actress starts the baby and family products business the honest company with christopher gavigan.

  Evaluation of corporate performance

The Final Paper will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report..

  One area in which you are assisting is in the setup of

one area in which you are assisting is in the setup of business development in central and south america for navigation

  The after-tax salvage and the return of working capital

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer’s base price is $1,080,000, and it would cost another $22,500 to install it.  What are the net operating cash flows in Years 1, 2, and 3? What is t..

  Estimate of the stocks current price

A company currently pays a dividend of $3.75 per share (D0 = $3.75). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.0..

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