If you look at the information in the question, you'll notice that the return is less than the cost of borrowing (loan interest rate) (ATIRR). This indicates that there is negative leverage and that the property cannot utilise it.
Positive leverage would be created in the first year if the property was purchased with expected returns equivalent to leverage.
Financial leverage is the process of using borrowed money (debt) to buy assets in the expectation that the income from the new asset or capital gain would outweigh the cost of borrowing. The leverage is summed up in this idea. By using debt (loan money), or leverage, we mean to increase the profits on an investment or project.
Leverage allows investors to increase their market buying power.
Leverage is a tool used by businesses to finance their assets. Rather than issuing stock to raise money, businesses can use debt to finance operations in an effort to boost shareholder value.
The most popular financial leverage ratios to determine how hazardous a company's position is are debt-to-assets and debt-to-equity.
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Answer:
Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000
Explanation:
look p1 a machine
Answer:
Share price Today = $172.574
Explanation:
Using dividend growth model we can compute price of share after 3 years,
As follows:
Where P3 = Price at end of year 3
D4 = Dividend at end of year 4 = $10
Ke = Cost of return = 10%
g = growth rate = 5%
P3 = 
= $200
Now, we have
Year Dividend or price Present value factor Present Value
1 $9 0.909 $8.181
2 $9 0.826 $7.434
3 $9 0.751 $6.759
3 $200 0.751 $150.20
Net Present value of share today = $172.574
Statement that doesn't gives indication of pest infestation as regards this question is A: Dust underneath a storage shelf.
- Pest infestation can be regarded as the presence of an unusually large number of insects in place They usually cause damage or disease and it is a result improper management of a place in an healthy way.
- Some of the activities that can cause this at home are Egg casings behind the refrigerator which can invite pest.
- Another one is Gnaw marks on a trash can.
Therefore, option A is correct.
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