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aivan3 [116]
1 year ago
11

A property valued at $1 million is returning a net annual income of $85,000. what's its cap rate?

Business
1 answer:
leva [86]1 year ago
4 0
8.5% :))))))))))))))))))))
You might be interested in
An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined federal and state tax bracke
kifflom [539]

Answer:

The bonds after tax yield is given as Pre tax yield X (1-tax rate)

After Tax Yield = 9% X (1-0.36) = 9%X0.64=5.76%

Answer: 5.76%

Explanation:

The after-tax yield of any financial instrument such as a bond or even stock dividends is the effective yield after the applicable taxes have been paid. Higher the tax rate, lesser is the after-tax yield for the investor.

To calculate your after-tax yield, you need to know both the rate of return on your investment and the tax rate that applies to those profits. First, convert your tax rate that applies to the earnings to a decimal by dividing by 100. Second, subtract the result from 1 to calculate the portion of your earnings that you get to keep after you pay taxes on them. Third, multiply the result by the rate of return on the investment to calculate your after-tax yield.

For example, say that you want to calculate the after-tax rate of return on your certificate of deposit. If your rate of return is 3 percent and the tax rate applied to that interest is 24 percent, start by dividing 24 percent by 100 to get 0.24. Second, subtract 0.24 from 1 to get 0.76 – the portion that you get to keep after accounting for taxes. Finally, multiply 0.76 by your overall rate of return of 3 percent to find your after-tax yield is 2.28 percent.

5 0
3 years ago
Read 2 more answers
Perez Company reported the following data regarding the product it sells: Sales price $ 56 Contribution margin ratio 25 % Fixed
suter [353]

Answer:

Contribution margin ratio = 1 - variable cost ratio

                                          = 25%

(a) Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}

Break\ even\ in\ dollars=\frac{350,000}{0.25}

                                            = 1,400,000

 Break\ even\ in\ units=\frac{Break\ even\ in\ dollars}{sales\ price}

 Break\ even\ in\ units=\frac{1,400,000}{56}

                                           = 25,000

(b) For profit of $42,000,

sales=\frac{Profit+fixed\ cost}{contribution\ margin\ ratio}

sales=\frac{42,000+350,000}{0.25}

               = 1,568,000

In\ units=\frac{sales}{sales\ price}

In\ units=\frac{1,568,000}{56}

                    = 28,000

(c) variable cost = sales price × variable cost ratio

                           = $56 × 75%

                           = $42

New contribution margin = \frac{New\ sales\ price-variable\ cost}{New\ sales\ price}

New contribution margin = \frac{70-42}{70}

                                          = 0.4

                                          = 40%

New\ Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}

New\ Break\ even\ in\ dollars=\frac{350,000}{0.4}

                                                        = $875,000

New\ Break\ even\ in\ units=\frac{New\ Break\ even\ in\ dollars}{New\ sales\ price}

New\ Break\ even\ in\ units=\frac{875,000}{70}

                                                    = 12,500

3 0
3 years ago
Write the AddressList method newBusiness. This method searches addresses for an existing business with an identical address (i.e
max2010maxim [7]

Answer:

See explaination

Explanation:

// Address.java

public class Address {

/**

* The name of the business

*/

private String name;

/**

* The name of the street the business is on

*/

private String street;

/**

* The street number of the business

*/

private int number;

/**

* Constructs an Address that represents a business with name nm,

* at number no on the street st

*/

public Address(String nm, String st, int no)

{

name = nm;

street = st;

number = no;

}

/**

* Returns the name of the business

*/

public String getName()

{

return name;

}

/**

* Returns the name of the street on which the business is located

*/

public String getStreet()

{

return street;

}

/**

* Returns the street number of the business

*/

public int getNumber()

{

return number;

}

}

//end of Address.java

//AddressBook.java

import java.util.ArrayList;

import java.util.List;

public class AddressBook {

/**

* The list of business addresses. No two businesses in the list

* can have the same address (both the same street and street number)

*/

private List<Address> addresses;

/**

* Constructs an empty AddressBook

*/

public AddressBook()

{

addresses = new ArrayList<Address>();

}

/**

* atparam st the name of a street

* atreturn a list with the names of each business with an address on that street

*/

public List<String> onStreet(String st)

{

// create an empty output list of names of business

List<String> businessName = new ArrayList<String>();

// loop over the list of addresses

for(int i=0;i<addresses.size();i++)

{

// if ith street of address = nm, add the name of the business to the output list

if(addresses.get(i).getStreet().equalsIgnoreCase(st))

businessName.add(addresses.get(i).getName());

}

return businessName; // return the list

}

/**

* Searches for an existing business with an identical address (street and number

* both match). Updates the record to an address with name nm, street st and number no.

* If no entry already exists adds a new address to the end of the list with these parameters.

*

* atparam nm the name of the business

* atparam st the street the business is on

* atparam no the street number of the business

* atreturn the index of where the business address is on the list

*/

public int newBusiness(String nm, String st, int no)

{

// loop over the list of addresses

for(int i=0;i<addresses.size();i++)

{

// if ith index addresses match the street and number of the input st and no

if((addresses.get(i).getStreet().equalsIgnoreCase(st)) && (addresses.get(i).getNumber() == no))

{

addresses.remove(i); // remove the ith address from list

addresses.add(i, new Address(nm,st,no)); // add a new address with the input name, street and number at ith index

return i; // return the index i

}

}

// if no address match, add the business at the end of the list

addresses.add(new Address(nm,st,no));

return addresses.size()-1; // return the last index

}

}

//end of AddressBook.java

5 0
3 years ago
Motorola and apple are two large competitors in the cellular phone market. it is a violation of the __________ if sanjay jha ser
AURORKA [14]

Answer:

Competition act.

Explanation:

When same person on the board of two or more than two competing firms then such instance is referred to as interlocking directorate. This will significantly have an impact on the market and the competition.

8 0
2 years ago
Suppose that two things happen simultaneously in the market for fish. First, a new technology allows fishing boats to catch more
german
Number 1 = decrease
number 2= have an ambiguous change
3 0
3 years ago
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