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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% :))))))))))))))))))))
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Gruber Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and will
nata0808 [166]

Answer:

The price of the stock today is $54.61

Explanation:

The stock of this company pays a constant dividend for a defined period of time after equal intervals. Thus, it is just like an annuity. To calculate the price of such a stock, we will use the present value of annuity formula:

Assuming that the dividend is paid at the end of the period.

Present Value of Annuity = Dividend * [(1 - (1+r)^-n) / r]

Where,

  • r is the required rate of return
  • n is the number of years of annuity

The price of the stock today is,

P0 = 8.45 * [(1 - (1+0.13)^-15) / 0.13]

P0 = $54.607 rounded off to $54.61

5 0
3 years ago
You own a portfolio that has $2,800 invested in Stock A and $3,900 invested in Stock B. Assume the expected returns on these sto
Luden [163]

Answer:

12.5%

Explanation:

A portfolio has $2,800 invested in stock A

$3,900 is invested in stock B

The expected return of stock A is 9%

= 9/100

= 0.09

The expected return of stock B is 15%

= 15/100

= 0.15

The first step is to calculate the total value

= $2,800+$3,900

= $6,700

Therefore, the expected return on the portfolio can be calculated as follows

= (2,800/6,700)×0.09 + (3,900/6,700)×0.15

= 0.4179×0.09 + 0.5820×0.15

= 0.03761 + 0.0873

= 0.1249×100

= 12.5%

Hence the expected return on the portfolio is 12.5%

7 0
3 years ago
Frederick herzberg believed the best way to motivate employees with through his model of , which expands job content to create m
gayaneshka [121]
The answer is:   "job enrichment" .
_____________________________________________
<span>       "Frederick Herzberg believed the best way to motivate employees with through his model of <u>  job enrichment  </u><u /> , which expands job content to create more opportunities for job satisfaction." 
_____________________________________________</span>
3 0
3 years ago
Help me out here I got a d
Aneli [31]

Answer:

it is type and price range.

3 0
3 years ago
Barney decides to quit his job as a corporate accountant, which pays $10 890 a month, and goes into business for himself as a ce
mash [69]

Answer:

a. Barney's monthly explicit costs: $161;

b. Barney's monthly implicit costs: $11,816;

c. Barney's monthly economic costs: $11,977

Explanation:

a.

Barney's monthly explicit costs include any costs that he actually paid extra every month as the result from running his business including: cost of office supplies + cost of electricity bill = $71 + $90 = $161

b.

Barney's monthly implicit costs include any cost that he does not actually pay extra, yet he has to sacrifice these income as the results of running his business which includes: Cost related to his salary sacrifice + Cost related to his apartment rental = 10,890 + 926 = $11,816

c. Barney's monthly economic costs = Barney's monthly explicit costs + Barney's monthly implicit costs = $11,977

7 0
3 years ago
Read 2 more answers
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