Answer: $17.28
Explanation:
6 month free concession in first year drops rent to:
= 20 / 2
= $10
Effective rent = [Present value of Year 1 rent + Present value of Year 2 rent + Present value of Year 3 rent ] / [ 1 - (1 / (1 + rate)^ number of years) / rate]
= [(10 / (1 + 10%) ) + (21 / (1 + 10%)²) + (22 / (1 + 10%)³)] * [1 - (1 / (1 + 10%)³/ 10%)]
= (9.09 + 17.355 + 16.5289) / 2.48685
= $17.28
Answer:
a. 324%
b. 16.61%
Explanation:
a. The computation of the APR is the annual rate of interest which is shown below:
= Interest per month × number of months in a year
= 27% × 12 months
= 324%
b. And, the effective annual rate would be
= (1 + interest rate per month) ^ Number of months in a year - 1
= (1 + 27%) ^ 12 -1
= 1.27 ^ 12 -1
= 17.6053 - 1
= 16.61%
Answer:
I used an excel spreadsheet since there is not enough room here.
Answer:
WB = BA(WA) + BB(WB) + BC (WC) + BD(WD)
1.6 = 0.83(0.5) + 1.50(0.1) + 1.42(0.15) + BD(0.25)
1.6 = 0.415 + 0.15 + 0.213 + 0.25BD
1.6 = 0.778 + 0.25BD
1.6-0.778 = 0.25BD
0.822 = 0.25BD
BD = 0.822/0.25
BD = 3.288
Explanation: The question relates to Beta of a portfolio. The Beta of a portfolio is the aggregate of Beta of each stock multiplied by the weight of each stock. The Beta of stock D was not given, thus, it becomes the subject of the formula.
