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Ghella [55]
3 years ago
10

Roadtec Tire Company has a corporate culture that emphasizes an internal focus on the involvement and participation of employees

, placing high value on meeting the needs of employees. The company is known for its caring, family-like atmosphere. Which type of corporate culture does Roadtec possess?A) Adaptability
B) Achievement
C) Consistency
D) Involvement
E) Matrix
Business
1 answer:
Otrada [13]3 years ago
5 0

Answer: (D) Involvement culture

Explanation:

 According to the given question, the involvement culture is one of the type of corporate culture that helps in focusing the various types of internal functions such as the involvement and also the participation of the employees in an organization.

The road-tech tire is one of the company that possess the involvement corporate culture for its family like environment and caring nature for the employees.

The main advantage of the involvement culture is that it helps in reduce the stressful environment of an organization and also providing the various types of economical and social based benefits.

 Therefore, Option (D) is correct answer.

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The correct answer is letter "A": receiving report.

Explanation:

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A developer is proposing to build and operate an 8 store strip mall. Each unit would rent for $3,500 per month. It is expected t
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Answer:

<u>Requirement A:</u> CAP Rate is 12.5%

<u>Requirement B:</u> Capitalized Value of the Property is $1,884,960

<u>Requirement C:</u> Loan Amount is $1,413,720

<u>Requirement D:</u> Debt Service Coverage Ratio is 1.85

<u>Requirement E:</u> Loan per unit is $176,715 Per Unit

Explanation:

<u>Requirement A:</u> Find the CAP Rate

The CAP Rate will be calculated using the following formula:

CAP Rate = Annual Net Operating Income (NOI) <u>(Step1)</u> / Property Capitalized Value <u>(Step2)</u>

Here

Operating Income is $235,620 (Step1)

Property Capitalized Value (Step2)

Now, by putting values we have:

CAP Rate = $235,620 / $1,884,960 = 12.5%

<u>Step1:</u> Find Annual Net Operating Income (NOI)

As we know that:

Operating Income = Expected Revenue - Operating Expense

Here

Expected Revenue from 8 Strip Malls = Rent / Month * 12 Months * (1 - Vacancy Ratio) * 8 Strips Malls

= $3,500 * 12 * (1 - 15%) * 8

= $285,600

Operating Expenses = Expected Revenue * 17.5%

= $285,600 * 17.5% = $49,980

Now by putting value in the above Operating Income equation, we have:

Annual Operating Income = $285,600 - $49,980 = $235,620

<u>Step2:</u> Find Property Capitalized Value (It is also <u>Requirement B</u>)

Property Capitalized Value = Annual Operating Income / Minimum Accepted Rate of Return (MARR)

Here

Annual Operating Income is $235,620 from Step1

MARR is 12.5%

By putting values, we have:

Capitalized Value of the Property = $235,620 / 12.5% = $1,884,960

<u></u>

<u>Requirement C. Find Loan Amount</u>

It is given in the question that the Loan Amount is 75% of Property Capitalized Cost. This implies:

Loan Amount = $1,884,960 * 75% = $1,413,720

<u>Requirement D. Debt Service Coverage Ratio</u>

Debt Service Coverage Ratio (DSCR) = Annual Net Operating Income / Total Debt Service for the Year

Here

Annual Net Operating Income is $235,620 from Step1

Total Debt Service for the Year $127,235 (See <u>Step3</u> below)

By putting values, we have:

Debt Service Coverage Ratio = $235,620 / $127,235 = 1.85

<u>Step3: Total Debt Service for the year</u>

Total Debt Service for the year = Loan Amount * Debt Service Rate

Here

Loan Amount is $1,413,720

Debt Service Rate is 9%

By putting values, we have:

Total Debt Service for the year = $1,413,720 * 9% = $127,235

<u>Requirement E. Find Loan Amount</u>

We can find loan per unit by simply dividing the loan amount by number of strip mall. Here total number of strip mall are 8. This implies that:

Loan Per Unit = $1,413,720 / 8 Units = $176,715 Per Unit

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