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!
The CEO of Kuehner Development Company has just come from a meeting with his marketing staff where he was given the latest market study of a proposed new shopping center. The study calls for a construction phase of 1 year, and a subsequent operation phase. This question focuses largely on the construction phase. The marketing staff has chosen a 12-acre site for the project that they believe they can acquire for $2.25 million. The initial studies indicate that this shopping center will have gross building area (GBA) of 190,000 sq. ft. The head of the construction division assures the CEO that hard costs will be kept to $54 per sq ft. of GBA, and soft costs (excluding interest carry and loan fees) will be kept to $4.50 per square foot of GBA. Site improvements will cost $750,000. The Shawmut Bank has agreed to provide construction financing for the project. The bank will finance the construction costs (hard and soft) and the site improvements at an annual rate of 13%. They will also charge a loan-commitment fee of 2% of the total balance. The construction division estimates that 60 percent of the financed construction costs will be taken down evenly during the first six months of the construction project. The remaining 40 percent will be taken down evenly during the last six months.
a. What are the total construction costs that the bank is willing to finance?
b. Given the terms of the construction loan, what will be the total interest carry for the shopping center project?
c. What will be the total amount that Kuehner must borrow (Hint: remember to include interest carry)?
d. How much equity does Kuehner need to put into the project?
e. Acme Insurance Co. agrees to provide permanent financing for the project and "take-out" the construction loan at the end of 1 year. They agree to provide a fully amortizing mortgage with a 20 year maturity at a 12 percent annual interest rate. What is the monthly debt service that Kuehner will have to make once construction is completed and operations begin?
What is Filer's aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.2345)
Why might too much leverage be a problem for an investment bank? Why might relying too much on short-term borrowing be a problem?
an investment will pay 100 at the end of the next 3 years 200 at the end of year 4 300 at the end of year 5 and 500 at
JEN Corp. is expected to pay a dividend of $6.50 per year indefinitely. If the appropriate rate of return on this stock is 10 percent per year, and the stock consistently goes ex-dividend 10 days before dividend payment date, what will be the expe..
consider the trade of purchasing a 10-year coupon bond and hedge the interest rate risk using a 2-year zero coupon
A newly issued corporate bond has twenty years to maturity. The bond has a coupon rate of 8 percent and pays interest semiannually. Also the bond is callable in six years at a call price equal to 115% of par value.
The assignment is to write a 1,000 word paper on one of the topics listed above. You must use 3 professional sources (no wiki or ~pedias) and follow APA format.
You deposit $10 at the end of each month for five years in an account paying 6% compounded monthly.
Banisters is valued at $8.6 million and has debt of $2.1 million outstanding. The unlevered firm beta is 1.72, the debt beta is zero.
What are some of the organizational influences that alter the role and path of project management? How does the project manager navigate
Leyton Lumber Company has sales of $10 million per year, all on credit terms calling for payment within 30 days; and its accounts receivable are $2 million.
Which rate of return does the investor expect to receive on this stock is purchased today? Round the answer to two decimal places in percentage form.
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