Reference no: EM131063119
A property is sold for $200,000. Typical financing terms are an 85% loan with a 10% interest rate over 15 years. If the before-tax cash flow is $2,000, what is the overall capitalization rate?
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Calculate the before-tax and after tax costs of debt
: Currently, Warren industries can sell 15-year, $1,000 par value bonds paying annual interest at a 12% coupon rate. As a result of current interest rates, the bonds can be sold for $1,010 each; flotation cost of $30 per bond will be incurred in this p..
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What was the company change in net working capital
: The December 31, 2013, balance sheet of Maria’s Tennis Shop, Inc., showed current assets of $1,125 and current liabilities of $925. The December 31, 2014, balance sheet showed current assets of $1,340 and current liabilities of $1,015. What was the c..
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What was the firms cash flow to creditors
: The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,390,000, and the December 31, 2014, balance sheet showed long-term debt of $1,560,000. The 2014 income statement showed an interest expense of $93,000. What was the fir..
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Face value bond issued
: A 15-year, $1,000 face value bond issued by Clayton Enterprises pays interest semiannually on April 1 and October 1. Assume today is November 1. What will the difference, if any, be between this bond's clean and dirty prices today? no difference one ..
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What is the overall capitalization rate
: A property is sold for $200,000. Typical financing terms are an 85% loan with a 10% interest rate over 15 years. If the before-tax cash flow is $2,000, what is the overall capitalization rate?
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What is the price that the buyer should pay for bike shop
: A prospective buyer has hired you to value a bike shop. you estimate that in the next 4 years, bike shop will generate free cash flows of $10,000, $14,000, $18,000 and $21,000. Regardless of what answer you find, assume that the terminal value for th..
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What is the overall capitalization rate
: A property is sold for $200,000. Typical financing terms are an 85% loan with a 10% interest rate over 15 years. If the before-tax cash flow is $2,000, what is the overall capitalization rate?
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To assess the value of the firm stock
: Imprudential, Inc., has an unfunded pension liability of $573 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.6..
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Numerous opportunities to expand in foreign countries
: ABC Co. has recognized numerous opportunities to expand in foreign countries and has assessed many foreign markets, including Brazil, Greece, Mexico, Portugal, Singapore, and Thailand. What comparative advantage does ABC have when establishing a stor..
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