Answer:
Worth of both the property will be same.
Explanation:
Data provided in the question:
Cap rate for the Property A which is a self storage capacity = 6%
Cap rate for the Property B which is an office building = 6%
NOI of both the buildings are equal
Now,
Mathematically,
Cap rate is given as = [ NOI ] ÷ [ Worth of the property ]
or
Worth of the property = [ NOI ] ÷ [ Cap rate ]
Since, the NOI and cap rate for both the buildings are same
Therefore,
Worth of both the property will be same.
It most likely lead to prior hypothesis, reasoning by analogy, representative, ivory tower planning , and escalating commitment. :)
Answer:
$124,440
Explanation:
Given a monthly principal and interest payment of $679, over the 30 year period, Naomi would have paid back
$679 * 30 year * 12 months in a year
= $244,440
With a loan amount of @120,000, the interest portion of the total repayment is therefore = total repayment less the loan amount
= $244,440 - $120000
= $124,440.
The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt'
.
Option-c
<u>Explanation:
</u>
Debt on assets which are less likely to lose is secured more uncertainty leads to lower returns, hence lower costs. The risk of loss to equity holders also remains greater and not even assured against any collateral. In comparison to higher risk equity holders foresee higher returns.
This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.
