What is the operating expense ration

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Use the following information to answer the questions. Commercial Property Leaseable space= 300,000 sqft Cap Expenditures = 20% of EGI Average Annual Rent = $17.00/Sqft LTV = 80% Average Annual Growth = 2.5%/year Loan Interest Rate = 6% V&C Losses = 8% of PGI Amortization = 30 yrs Operating expenses = 35% of EGI % Bldg/Total Value = 75% Miscellaneous Income = $1.50/sqft Corporate tax rate = 30% MI annual growth = 2%/year Cap Gains tax rate = 15% going-out cap rate = 10.5% accum dep tax rate = 25% discount rate = 6% purchase price = $22.5M What is the operating expense ration? A 24% B 32% C 27% D 35% What is the going-in cap rate? A 12.9% B 8.10% C 14.85% D 7.60%

Reference no: EM131938950

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