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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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Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the
Papessa [141]

Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the same rate regardless of income, this might be so because low-income individuals are more prone than high-income individuals to purchase alcohol, tobacco, and gasoline.

<h3>What are Excise taxes?</h3>
  • Any duty on produced items that are assessed at the time of manufacture rather than the time of sale is known as an excise or excise tax.
  • Excises and customs duties are frequently used interchangeably, although customs taxes are imposed on already-existing products when they cross a defined border in one direction, whereas excise is imposed on goods that were created inland.
  • State sales taxes and excise taxes on alcohol and cigarettes are frequently criticized for being regressive.
  • Despite the fact that everyone pays the same rate regardless of income, this may be the case because people with low incomes are more likely than those with higher incomes to buy alcohol, cigarettes, and fuel.

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5 0
1 year ago
Jax Recording Studio purchased $8,200 in electronic components from Music World. Jax signed a 90-day, 10% promissory note for $8
Hunter-Best [27]

Answer:

World's journal entry to record the sales transaction is:

<em>Note Receivable ; Jax Recording Studio $8,200 (debit)</em>

<em>Sales Revenue $8,200 (credit)</em>

Explanation:

Music World is the seller and must recognize Revenue following the sale.The Revenue is initially recognized at the value of sale of $8,200. Music World must also recognize an Asset on the promissory note signed to the value of $8,200.

6 0
3 years ago
Match each of the terms below with their definitions and descriptions
Brums [2.3K]
The answer is B :)))
3 0
3 years ago
Howard wants to buy a commercial building but does not have enough cash. He decides to bring in partners to help fund the equity
damaskus [11]

Answer:

Venture Capital

Venture capital is the type of partnership in which two or more than two firm or people invest in a project or assets that has higher tendency of returns payback.

5 0
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which protects tricare beneficiaries from devastating financial loss due to serious illness or long-term treatment by establishi
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The factor that protects Tricare beneficiaries from devastating financial loss due to serious illness or long-term treatment by establishing limits over which payment is not required is known to be called catastrophic cap benefit.

<h3>What is catastrophic cap benefit?</h3>

The catastrophic cap is known to be a word that connote the highest or maximum a person and their family can be able to pay so that they can be able to covered TRICARE health care services in all of the calendar year.

Note that this is known to be a plan that tends to protects a person due to the fact that it lowers the amount in terms  of the out-of-pocket expenses a person need to pay for TRICARE covered medical services.

Therefore, The factor that protects Tricare beneficiaries from devastating financial loss due to serious illness or long-term treatment by establishing limits over which payment is not required is known to be called catastrophic cap benefit.

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1 year ago
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