User Account

All Pages

What is the maximum loan amount

Assignment Help Finance Basics
Reference no: EM133072881

Susan is considering buying a class-A office building in Miami. The acquisition price is $2,500,000. She expects the first-year potential gross income (PGI) to be $300,000. Based on her pro forma analysis, vacancy and collection losses comprise 5% of PGI, and operating expenses and capital expenditures will consume 40% of EGI. The interest rate on her commercial mortgage is 6%, with monthly payments and 25-year amortization schedule. If the lender requires the DCR to be 1.35 or greater, what is the maximum loan amount?

Reference no: EM133072881

Questions Cloud

Find the fv at the end of 24 months : 1) Jor Amster is a young professional planning his future. He knows he needs to start saving (or investing) soon. But he also knows he doesn't have a lot of inc
Case study-alice bank : Alice Bank has an ROE objective of 12%, is subject to an average tax rate of 35%, and provides the following information regarding the loans that it extends to
Prepare a differential analysis as of october : Prepare a differential analysis as of October 1 presenting the proposed operation of the store for the 16 years
COM 200 Communication - The Key to Working Together : COM 200 Communication - The Key to Working Together Assignment Help and Solution, Strayer University - Homework Help
What is the maximum loan amount : Susan is considering buying a class-A office building in Miami. The acquisition price is $2,500,000. She expects the first-year potential gross income (PGI) to
Estimate the value of tigers ltd : Tigers Ltd has $100 million in debt outstanding, in both book value and market value terms, and expects to maintain a debt ratio of 40%. The beta of the stock i
Calculate the estimated inventory at may : Information follows for the month of May: Inventory, May 1 $359,000. Calculate the estimated inventory at May 31, assuming that the gross profit is 25% of sales
How much money should you invest in the stock : How much money, x, should you invest in the stock if your utility function is u(W ) = ln(W ), and the probability the stock will go up is 58%
How confident you have in meeting your goal : You plan to retire in the next 30 years. At retirement, your goal is to spend five years travelling around the world. To achieve this, you want to place an annu

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd