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3 years ago

For beginning real-estate investors what are some advantages of REITs rather than direct purchase of property?

1 answer:

3 0

REITs keep you liquid and may be more cost efficient. Entering in a REIT also costs lower, and an individual can invest in a fund for less than 1,000 USD. It's kind of like buying into a stock too, in a sense that you can sell your REIT shares at your leisure.

On one hand, direct real estate investment gives you more power over your finances as there is no fund manager - you are the one in charge and you decide who can rent and live in your property. Some say that investment returns are also bigger should you go for direct real estate. However, it should be noted that you're putting in a bigger amount (roughly upwards 100,000 USD - which few people may be ready to shell out) just to get started on direct property investment versus about USD 1,000 into REIT.

At the end of the day, it's up to the investor to decide what sort of risk you're comfortable with.

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Rom4ik [11]

Answer:

D) generates the highest contribution margin per stamping machine hour

Explanation:

Since the stamping machine is Kinsi's constrained resource, or bottleneck resource, in order to maximize its profit, the company should manufacture the products that maximize the utility of the stamping machine. The product that maximize the utility are the one that have the highest contribution margin. Therefore Kinsi must produce the products that have the highest contribution margin per stamping machine hour.

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3 years ago

Most audience members expect your presentation to include

Elan Coil [88]

Answer: Preview-view-review strategy.

Explanation: The preview-view-review strategy is used in many different learning environments. This process allows the presenter or teacher to preview the information that will be covered, go over the information being discussed and then review it as a conclusion at the end. By previewing the information, the audience is able to understand what topics will be covered, then learn about them in the view stage and have a summary of the information covered in the review.

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3 years ago

Gargoyle Unlimited Gargoyle Unlimited is planning to issue a zero coupon bond to fund a project that will yield its first positi

asambeis [7]

Answer:

The answer is 6.72%

Explanation:

Calculating the imputed rate from a discount bond as follows:

( 1 + i )^n = FV / PV

( 1 + i )^3 = FV / PV, here FV= 1000 and PV= 727.25

so putting values in equation we have:

( 1 +i )^3 = 1000 / 727.25

( 1 + i )^3 = 1.375

solving for i

( 1 + i) = 1.375^1/3

( 1 + i ) = 1.112

i = 0.112 before tax rate

0.112 * (1 - tax rate) = after tax interest rate

0.112 * .60 = 0.0672 = 6.72%

thus the expected after tax cost of this debt issue is 6.72%

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3 years ago

"Which type of report would help the company study available options and how should it be organized?"

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a yardstick report would be used. it would be organized indirectly, describing the problem, explaining alternatives, establishing criteria for comparison, evaluating each alternative in terms of the criteria, and making recommendations.

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3 years ago

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Increased customization in products and services generally requires <u>more </u>resources and effort.

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1 year ago