He would most likely listed his personal residence on the price that is higher compared to the market value.
In general, single people bought real estate for investment purposes (becuase it is less likely they live in the spacious room alone). So, these people tend to listed the price after considering the profit and the comission that will given to the agent.
Answer:
$696400
Explanation:
The values given are as follows:
Tax rate= 21%, 21/100= 0.21
Equity cost= 11.1%
Value of Unlevered Firm= $625,000
Rate at which Tantum can borrow=6.7%, 6.7/100=0.067
Amount of value if the company ends up borrowing=$340,000
Value of levered Firm =?
The formular for finding the value of levered Firm is:
Value of Unlevered Firm + Tax Rate * Debt
=$625,000 + 0.21 *$340,000
= $625,000 + $ 71,400
= $ 696,400
Thus, the value of levered firm is $696,400.
Answer:
The smallest Q that will suffice is 409.86
Explanation:
Since Future value of payments = 14000
300*[(1 + 3%/12)^12 - 1]/3%/12*(1 + 3%/12)^24 + Q*[(1 + 3%/12)^24 - 1]/3%/12 = 14000
Q*[(1 + 3%/12)^24 - 1]/3%/12 = 14000 - 300*[(1 + 3%/12)^12 - 1]/3%/12*(1 + 3%/12)^24
Q = 409.86
Therefore, The smallest Q that will suffice is 409.86