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lord [1]
3 years ago
12

QUESTION 11 Given the following information, calculate the equity dividend rate for this investment: first-year NOI: $18,750; be

fore-tax cash flow: $11,440; acquisition price: $520,000; equity Investment: a) 20%. b) 3.6% c) 11.0% d) 2.2% e) 18.02%.
Business
1 answer:
Alja [10]3 years ago
4 0

Answer: D. 2.2%

Explanation: Equity Dividend Rate is calculated by dividing the Before Tax Cash Flow by the Acquisition price. If you need the answer in percentage form, you then multiply by 100.

Here, before-tax cash flow =  $11,440

Acquisition price = $520,000

So Equity Dividend Rate = \frac{11440}{520000} X 100

     Equity Dividend Rate = 2.2%

In this question, you do not need the Net Operating Income (NOI). You only need the NOI if the Before Tax Cash Flow is not given and the debt service payment is. If this is the case, you subtract the debt service payment from the NOI to get the Before Tax Cash Flow.

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In a market economy, decisions about which goods are produced are based
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Answer:

B. what businesses believe will generate the most profits.

Explanation:

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In the market economy, the private sector engages in business to make profits. They risk their resources in producing goods and services that can increase their wealth. Only the products that are likely to generate profits are produced.

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2 years ago
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3 years ago
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Why are business office established​
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Answer:

Mark me Brainliest

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4 0
3 years ago
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information i
tiny-mole [99]

Answer:

(B) $45,000.

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Add : Depreciation expense $52,000

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Total of Adjustments -$29,000

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6 0
2 years ago
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