What is the cumulative annual growth rate of the property

Assignment Help Financial Accounting
Reference no: EM132955333

Problem 1: If the debt service coverage ratio (DSCR) is 1.25x, annual debt service and operating cost is $400,000, what must the Revenues be?

(a) $524,000

(b) $544,000

(c) $556,250

(d) $564,000

Problem 2: "A" buys a property for $3 million and sells it 8 years down the road for $6 million. Ignore any income received during the 7-year holding period. What is the cumulative annual growth rate (CAGR) of the property's value?

(a) 5.57%

(b) 9.05%

(c) 15.73%

(d) 25.50%

Problem 3: In determining the value of a property, a cap rate of 8.0% implies that the property can be sold at hollowing multiple of its NOI:

(a) 12.5x

(b) 14.0x

(c) 16.5x

(d) 18.0x

Reference no: EM132955333

Questions Cloud

Question - Show the journal entry : Question - Show the journal entry - NAIKLA BERHAD received a grant on 10 May 2020 from Ministry of Transportation amounted RM1,000,000
What is the good outcome and bad outcome of income : What is the good outcome and bad outcome of income?
What are the strengths of calculating per share price : What are the strengths and weaknesses of calculating per share price from the method of Free Cash Flow to Equity valuation VS finding per share price
Identify individual commitment and engagement practices : Leaders of Tomorrow, a nonprofit organization, attempts to affect organizational change by partnering with corporate leadership at various organizations to teac
What is the cumulative annual growth rate of the property : Ignore any income received during the 7-year holding period. What is the cumulative annual growth rate (CAGR) of the property's value?
What is the effect on its profit : A supplier is now offering the same electrical component at a price of £2.50. What is the effect on its profit
How much can Y deduct from the bill if Y pays : Company X sells on a 1/30, net 60 basis. Customer Y buys goods invoiced at $1,000. How much can Y deduct from the bill if Y pays
Find what is a expected return from the investment : 13% annual cash-on-cash yield and 7% in annual capital appreciation from this investment. "B" would like to know what is A's expected return from the investment
What is the effective rate of interest : Question - A loan P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of interest

Reviews

Write a Review

Financial Accounting Questions & Answers

  Payment of those dividends out of fairfax corporation

Lenexa Inc. owns 40% (50 shares) of Fairfax Corporation. On 1/1/2015 Fairfax Corporation’s board of directors a dividend payment to its stockholders at $2 per share. Please record the journal entry for Lenexa Inc. regarding the payment of those divid..

  What is the amount of each payment

The terms of the loan call for monthly payments for five years at a 3.9% rate of interest. What is the amount of each payment

  What is the value of a put option

The risk-free rate of interest is 4.5 percent continuously compounded. What is the value of a put option with strike price 51 and maturity 12 months

  Fair market value

Susan gives her brother stock with a basis in her hands of $75,000 and a fair market value of $65,000.

  Prepare a schedule showing physical units of production

Prepare a schedule showing physical units of production. Determine the equivalent units of production for materials and conversion costs. Compute the unit costs of production.

  Show the current liability section of the february

Show the current liability section of the February 29, 2020 balance sheet of Grouper Corp. Grouper Corp. has manufactured a broad range of quality

  Which to conceal cash receipts from gross income

Discuss which penalties, if any, might be imposed on the tax adviser in each of the following independent circumstances. In this regard, assume that the tax adviser: Suggested to the client various means by which to acquire excludible income. Suggest..

  Explain gain or loss on purchasing power

What items are restated when preparing constant peso financial statements? Explain gain or loss on purchasing power? What is current cost accounting?

  Indifferent between the two manufacturing methods

Martinez Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufact..

  Solve the amount of bond discount or premium

Adelphi Corporation issued $100,000 of 6%, 10-year bonds. Solve the amount of bond discount or premium that is amortized with each interest payment.

  What are the specific tasks of this systems survey

What are the three methods of departmental allocation approach? Explain how they differ, which is the most perferred, and why. What are the specific tasks of this systems survey? Propose and explain three different scopes for the system analysis.

  Company''s book balance of cash

Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of July 31. 2005.

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