1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
goldenfox [79]
2 years ago
9

40 points easy question

Business
1 answer:
Lyrx [107]2 years ago
3 0

Answer:

D

Explanation:

just did it and got it right

You might be interested in
Miller Co. classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are ex
Kobotan [32]

Answer:

Budgeted selling and administrative expense= $38,600

Explanation:

Giving the following information:

Variable expenses are expected to be $13,400 in the first quarter, and $3,900 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $21,300 in each quarter.

We need to determine the budgeted selling and administrative expense for the second quarter:

Budgeted selling and administrative expense= (13,400 + 3,900) + 21,300

Budgeted selling and administrative expense= $38,600

3 0
3 years ago
A developer is proposing to build and operate an 8 store strip mall. Each unit would rent for $3,500 per month. It is expected t
lys-0071 [83]

Answer:

<u>Requirement A:</u> CAP Rate is 12.5%

<u>Requirement B:</u> Capitalized Value of the Property is $1,884,960

<u>Requirement C:</u> Loan Amount is $1,413,720

<u>Requirement D:</u> Debt Service Coverage Ratio is 1.85

<u>Requirement E:</u> Loan per unit is $176,715 Per Unit

Explanation:

<u>Requirement A:</u> Find the CAP Rate

The CAP Rate will be calculated using the following formula:

CAP Rate = Annual Net Operating Income (NOI) <u>(Step1)</u> / Property Capitalized Value <u>(Step2)</u>

Here

Operating Income is $235,620 (Step1)

Property Capitalized Value (Step2)

Now, by putting values we have:

CAP Rate = $235,620 / $1,884,960 = 12.5%

<u>Step1:</u> Find Annual Net Operating Income (NOI)

As we know that:

Operating Income = Expected Revenue - Operating Expense

Here

Expected Revenue from 8 Strip Malls = Rent / Month * 12 Months * (1 - Vacancy Ratio) * 8 Strips Malls

= $3,500 * 12 * (1 - 15%) * 8

= $285,600

Operating Expenses = Expected Revenue * 17.5%

= $285,600 * 17.5% = $49,980

Now by putting value in the above Operating Income equation, we have:

Annual Operating Income = $285,600 - $49,980 = $235,620

<u>Step2:</u> Find Property Capitalized Value (It is also <u>Requirement B</u>)

Property Capitalized Value = Annual Operating Income / Minimum Accepted Rate of Return (MARR)

Here

Annual Operating Income is $235,620 from Step1

MARR is 12.5%

By putting values, we have:

Capitalized Value of the Property = $235,620 / 12.5% = $1,884,960

<u></u>

<u>Requirement C. Find Loan Amount</u>

It is given in the question that the Loan Amount is 75% of Property Capitalized Cost. This implies:

Loan Amount = $1,884,960 * 75% = $1,413,720

<u>Requirement D. Debt Service Coverage Ratio</u>

Debt Service Coverage Ratio (DSCR) = Annual Net Operating Income / Total Debt Service for the Year

Here

Annual Net Operating Income is $235,620 from Step1

Total Debt Service for the Year $127,235 (See <u>Step3</u> below)

By putting values, we have:

Debt Service Coverage Ratio = $235,620 / $127,235 = 1.85

<u>Step3: Total Debt Service for the year</u>

Total Debt Service for the year = Loan Amount * Debt Service Rate

Here

Loan Amount is $1,413,720

Debt Service Rate is 9%

By putting values, we have:

Total Debt Service for the year = $1,413,720 * 9% = $127,235

<u>Requirement E. Find Loan Amount</u>

We can find loan per unit by simply dividing the loan amount by number of strip mall. Here total number of strip mall are 8. This implies that:

Loan Per Unit = $1,413,720 / 8 Units = $176,715 Per Unit

3 0
3 years ago
Free cash flow equals cash provided by operations less capital expenditures and cash dividends. True False
SashulF [63]

Answer:

true

Explanation:

6 0
2 years ago
Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thu
Alborosie

Answer:

Test marketing

Explanation:

Test marketing is a marketing strategy that is undertaken to assess how a product or service will be perceived by the larger market. A small number of representatives is chosen to try the new product or service before the product is launched to the larger market.

6 0
3 years ago
A company issues $100,000 of 6%, 5-year bonds dated January 1 that pay interest semiannually. The bonds are issued when the mark
lora16 [44]

Answer:

To find the present value of the interest payments, multiply <u>$3,000</u> by the present value factor <u>8.1109</u>.

Explanation:

the market price of the bonds:

  • present value of face value = $100,000 / (1 + 4%)¹⁰ = $67,556.47
  • present value of coupon payments = $3,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $24,332.70

market price = $91,889.17

Since the market rate is higher than the coupon rate, the bonds will be sold at a discount.

8 0
3 years ago
Other questions:
  • ​_____ is a tort in which the presumption of negligence arises because the defendant was in exclusive control of the​ situation,
    15·1 answer
  • Using the aging method of accounts receivable method, $5,000 of the company's Accounts Receivable are estimated to be uncollecti
    10·2 answers
  • On January 4 of this year, Diaz Boutique incurs a $105,000 cost to modernize its store. Improvements include new floors, ceiling
    6·1 answer
  • Policies are at the center of the bull's-eye model. <br><br> a. True <br><br> b. False
    9·1 answer
  • Francis interviews two candidates for an administrative assistant position that will require a fair amount of project management
    12·1 answer
  • Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to spray its warehouse for insects p
    12·1 answer
  • Garth’s Distributing contracted with Wally Co. to sell it bottled water for $20,000. The contract is silent about assignments. G
    15·1 answer
  • LO 8.4What is the main difference between a flexible budget and a master budget?
    13·1 answer
  • Annual maintenance cost for a particular section of highway pavement are $3,000.The placement of a new surface would reduce the
    12·1 answer
  • Why is it important that your resume, cover letter, and job application all contain the same information?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!