Why is the above attractive to an investor

Assignment Help Finance Basics
Reference no: EM132433982

Consider the following:

  • Purchase Price: $800,000
  • Total bank financing: 90%
  • Total institutional equity: 80%

Calculate:

  1. Total amount of bank financing
  2. Total amount of institutional equity
  3. Total amount of investor's share (remember that the total of a, b, and c need to equal the purchase price)
  4. Investor's percentage of total purchase price

Why is the above attractive to an investor? What would it allow them to do?

Reference no: EM132433982

Questions Cloud

What is the optimal time for sunland to sell the mine : If Sunland's opportunity cost of capital is 10 percent, what is the optimal time for Sunland to sell the mine?
Should crane replace or renovate the existing line : Should Crane replace or renovate the existing line? Replace or Renovate?
Calculate the dividends in year 4 : Suppose you have come up with the following dividends forecasts for the next three years. After the 3d year, the dividend will grow at a constant rate
How did crenshaw presentation make you feel : Crenshaw states: "If we can't see a problem, we can't fix a problem" What is her point about "framing" (and visibility of a problem)?
Why is the above attractive to an investor : Why is the above attractive to an investor? What would it allow them to do?
Describe the water cycle : Explain how wetland destruction and creation of impervious surfaces through urban development affect the water cycle and contribute to flooding.
Discuss why you believe the qualities are so necessary : Clearly define what each characteristic is and discuss why you believe the qualities are so necessary/unnecessary for a speaker to have. What characteristics.
Describe aspects with respect to engaging in an argument : You may have already encountered in your experiences, that engaging in argument can be both positive and negative. Describe two positive aspects/outcomes.
Calculate the pre-tax weighted average : Your company's marginal income tax rate is 40%. Please calculate the post tax WACC from the information provided in problem one.

Reviews

Write a Review

Finance Basics Questions & Answers

  Should employer make the investment and why

Your employer is reviewing the acquisition of a new machine. It will cost 2,000,000 and is depreciable for seven years with a scrap value of 300,000.

  Calculate the value of frazier stock

Frazier Manufacturing paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Frazier has a beta of 1.3. If the market is returning 11% and the risk-free rate is 4%, calculate the value of Frazier's stock.

  Ranney inc has sales of 14900 costs of 5800 depreciation

ranney inc has sales of 14900 costs of 5800 depreciation expense of 1300 and interest expense of 780. if the tax rate

  What are the different payments for different payment plans

Cooley Landscaping needs to borrow $32 ,000 for a new front-end dirt loader. The bank is willing to loan the money at 9% interest for the next 9 years.

  What is the risk-free rate

The expected return on Mike's Seafood stock is 17.9 percent. If the expected return on the market is 13 percent and the beta for Mike's is 1.7, then what is the risk-free rate?

  What is project npv under the base-case assumptions

Emperor's Clothes Fashions can invest $6 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales.

  What was nike’s net income per share of common stock

How does NIKE disclose other comprehensive income items, and what was the comprehensive income amount for 2009? Was it above or below net income, and why?

  What are the most significant challenges

What are the most significant challenges each one has created within the healthcare industry?

  Developing a new iphone application

Take Five Systems, a new start-up, is developing a new iPhone application ("app") and provides you with the following assumptions:

  Accepting or rejecting the offer

Suppose you have 500 acres of timberland, with young timber worth $40,000 if logged now. This represents 1,000 cords of wood worth $40 per cord net of costs of cutting and hauling.

  The intrinsic value of a warrant to buy 5 shares of dawn

the intrinsic value of a warrant to buy 5 shares of dawn stoneworks stock at 70 per share is 25. what is the current

  Calculate the net cash flow from financing activities

A company reported $ 24000 of net income. in addition, dividends paid were $ 4000, accounts payable increased by $ 4000, accounts receivable decreased $ 3000, inventory increased by $ 6500, land was purchased for $ 21800, and depreciation expense ..

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