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AURORKA [14]
1 year ago
10

assume you take a first and second loan on a commercial property; both are interest-only loans with one financing 60% of the pur

chase price at a 5% interest rate, and the other financing 20% of the purchase price at a 15% interest rate. positive leverage would be created in the first year if the property was purchased with expected returns equivalent to
Business
1 answer:
Juliette [100K]1 year ago
6 0

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.

To know more about Leverage visit:

brainly.com/question/29032787

#SPJ4

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22. Which resource management activity establishes common definitions for capabilities of personnel, equipment, teams, supplies,
NemiM [27]

Answer:

Identifying and typing resource

Explanation:

Measurable defined or stated as the capabilities as well as the levels of the performance, resources are identified or recognized and the basis for every category.

The resources comprise of the following kinds or types, which are equipment, aircraft, teams, vehicles and supplies.

Resources are the categories of the typing through the capability, the mobilized the incident management and the response.

Therefore, the identifying and the typing resource is the resource management activity.

6 0
3 years ago
Analyzing Contingent and Other Liabilities:
miskamm [114]

Answer:

1. Situation is that a Stockholder has filed a lawsuit against C corporation.

Accounting treatment: Neither record nor disclose any liability.

Since the liability is not at all possible, it should be neither recorded nor disclosed.

2. Situation: F signed a 60 days, 10% note when it purchased items from another company.

Account treatment: Record the liability on the balance sheet.

Real liability that is both certain and the liability amount can also be reasonably estimated.  It should be recorded on the balance sheet.

3. The EPA notifies S co that a state where it has a plant is filing a lawsuit.

Account treatment: Disclose the liability in a financial statement footnote.

The liability is probable but not certain and liability amount can also be reasonably estimated.  It should be disclosed in financial statement footnote.

4. Situation: Company manufactured and sold products to a retailer that later sold product to consumer.

Account treatment: Record the liability on the balance sheet.

Real liability that is both certain and the liability amount can also be reasonably estimated.  It should be recorded on the balance sheet.

6 0
3 years ago
BOVE
Goshia [24]

Answer:

Here are five key skills that an administrator in an automobile dealership would need:

Communication/interpersonal skills: Administrators would have to work with clients that come in for test drives. Having good interpersonal skills would help them respond to customers’ queries more effectively. A friendly and outgoing personality would make them more approachable for the customers. An ability to speak and understand multiple languages would help an administrator deal with customers who are not fluent in English. An administrator must be able to communicate effectively, both verbally and through nonverbal cues.

Organizational skills: Administrators need to be well organized in their work involving customers. They would be required to schedule and organize test drives, arrange meetings, keep a record of customers’ documents, handle car insurance matters, and provide other assistance to customers.

Prioritize: Administrators would have to handle several tasks (described earlier), so they should be able to prioritize and schedule tasks effectively.

Manage: An administrator would have to manage the daily operations, such as ensuring that customers submit authentic documents, making appointments, and scheduling test drives. The administrator is also responsible for managing employee behavior, safety, and compliance with the company’s policies.

Reasoning and mathematical skills: An administrator would need to have above-average mathematical skills in order to maintain the company’s accounts dealing with sales and servicing. The person would need logical reasoning skills to facilitate decision making and process management.

Explanation:

PLATO

5 0
3 years ago
You have invested in a project that has the following payoff​ schedule: Probability of Payoff Occurrence ​ $40 .15 ​ $50 .20 ​ $
ioda
<h3>Answer:</h3>

<u>$59</u>

Explanation:

The investment payoff is calculated by multiplying each payoff value by the probability of occurrence.Expected investment payoff calculations are done for proper bsiness decision making.

The investment payoff is calculated by multiplying each payoff value by the probability of occurrence.

<h2>=$40 x .15  = $6</h2><h2>+</h2><h2>=$50 x .20 = $10</h2><h2>+</h2><h2>=$60 x .30 = $18</h2><h2>+</h2><h2>=$70 x .30 = $21</h2><h2>+</h2><h2>=$80 x .05 = $4</h2><h2>=$59</h2>

Therefore, the expected for the investment payoff is $59

6 0
3 years ago
Read 2 more answers
Assume that in the relevant jurisdiction, contracts with clauses restricting working for competitors for more than six months ar
Svetach [21]

Answer:

an enforceable contract, knowledge, intentional inducement

Explanation:

When a person is not allowed to work for a competitor for more than 6 months, it is considered illegal.

However, to enable an individual work with a competitor without and legal issues, there needs to be the following in place: an enforceable contract, third party knowledge, and intentional inducement.

8 0
3 years ago
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