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mario62 [17]
3 years ago
5

Given the following information, calculate the loan-to-value ratio of this commercial loan: estimated net operating income in th

e first year: $150,000; debt service in the first year: $100,000; loan amount: $1,000,000; purchase price: $1,300,000.
a. 1.75
b. 0.77
c. 0.08
d. 1.30
Business
1 answer:
tatyana61 [14]3 years ago
7 0

Answer:

b. 0.77

Explanation:

The formula to compute the loan to value ratio is shown below:

= Loan amount ÷ Purchase price

= $1,000,000 ÷ $1,300,000

= 0.77

It shows a relationship between the loan amount and the purchase price so that the accurate ratio can come

All other information that is given is not relevant as it is related to the debt yield ratio. Hence, ignored it

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Answer:

$4,000

Explanation:

Given that,

Last year:

DVDs sold = 10

Selling price of each DVD = $20

DVD players sold = 5

Selling price of each DVD player = $100

This year:

DVDs sold = 150

Selling price of each DVD = $10

DVD players sold = 10

Selling price of each DVD player = $60

Real GDP:

= (No. of DVDs sold this year × Selling price of each DVD last year) + (No. of DVD players sold this year × Selling price of each DVD player last year)

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3 years ago
Mariposa Corporation is considering purchasing equipment for $200,000. Mariposa expects this equipment will last for 20 years an
Westkost [7]

Answer:

$24,220

Explanation:

After tax cashflow formula as follows;

AT cashflow = Income before taxes(1- tax) + annual depreciation amount

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Annual depreciation amount = $200,000/ 20 = $10,000

AT cashflow = 18,000*(1-0.21) + 10,000

= 14,220 + 10,000

= 24,220

Therefore, Mariposa’s expected cash flow after taxes per year is $24,220

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