What must monthly be to achieve ten percent cap rate

Assignment Help Financial Management
Reference no: EM131926817

Information about listing:

-19,796 SF single story office building

-4.1 Acre site with parking

-Sale Price: $1,200,000/ $60.62PSF

-Lease Price: $9.00/SF, NNN

1. Assume full occupancy, what is fair market value using 12% desired cap rate?

2. Now assume requested "sale price" and $9.00 lease rate PSF on triple net basis. What must monthly be to achieve 10% cap rate?

SHOW CALCULATIONS

Reference no: EM131926817

Questions Cloud

Dertermine what is the companys wacc : Here is some information about Stokenchurch Inc.:Beta of common stock = 1.4,Dertermine What is the companys WACC.
What is the balance in the account at the end of the year : If the annually compounded interest rate is unchanged over the life of the investment, what is the balance in the account at the end of the third year?
Compute mdi mda and sfi feature importance : Compute MDI, MDA, and SFI feature importance on (X?,y), where the base estimator is RF.
Compute the hrp allocations and the cla allocations : Using the clustered covariance matrix V from exercise 1: Compute the HRP allocations. Compute the CLA allocations. Compute the IVP allocations.
What must monthly be to achieve ten percent cap rate : Now assume requested "sale price" and $9.00 lease rate PSF on triple net basis. What must monthly be to achieve 10% cap rate?
How to do calculation for this kind of percentage : The present value of $600 due in 1 year at a discount rate of 8.7%. The present value of $600 due in 2 years at a discount rate of 8.7%.
How would the estimate of the stocks value change : Soa's cost of good sold was assumed to be 67% of sales. if its cost of good sold is actually 70% of sales, how would the estimate of the stock's value change?
What factors would go into your thought process : Your client - an asphalt paver located here in the State of Michigan has averaged $1,000,000 of sales per month over the past calendar year.
Find the duration of the plans obligations : As interest rates change, the prices of longer term bonds change HOW when compared to the rate of change of shorter term bonds?

Reviews

Write a Review

Financial Management Questions & Answers

  Market interest rate on this type of bond

Pet Food Company bonds pay an annual coupon rate of 7.92 percent. Coupon payments are paid semiannually. Bonds have 14 years to maturity and par value of $1,000. Compute the value of Pet Food Company bonds if the market interest rate on this type of ..

  What will the initial outlay for the project be

Faraway decides to adjust for these flotation costs by adding them to the initial outlay, what will the initial outlay for the project be?

  Loan assuming that the pure expectations theory holds

Calculate the interest for a 1 year, 2 year, and 3 year loan assuming that the pure expectations theory holds.

  Principal will have been paid off after the first three year

How much interest will have been paid after the first three years of the mortgage? How much of the principal will have been paid off after the first three years

  How long would it take an investment to double its value

Currently interest rates continue to be close to historic lows, resulting in low borrowing costs for consumers. Savers, on the other hand, continue to struggle in this low interest rate environment. Currently a 6 month certificate of deposit pays abo..

  Evaluate major financial decision you have made recently

Evaluate a major financial decision you have made recently or are considering.

  What is the internal rate return of the fix asset

One business want to buy a computer size system that cost $15,000 and it has a utility life of 9 years. The system would generate a cash flow after tax of $2,205.25 each year. What is the internal rate return of the fix asset?

  Use this information to manage cost of processing orders

How might an operations manager use this information to manage the cost of processing orders?

  The risk-free asset to obtain your desired beta

How much should you invest in the risk-free asset to obtain your desired beta?

  What will be the implied risk-free return

Two securities have the following payo?s: What will be the implied risk-free return?

  Reaching a financial goal

Erika and Kitty, who are twins, just received $45,000 each for their 27th birthdays. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year f..

  Expected annual incremental after-tax free cash flows

What are the expected annual incremental after-tax free cash flows from the new fragrance?

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