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Georgia [21]
2 years ago
10

A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due

in 1 month. The mall's owner plans to sell the property in a year and wants rent at the time to be high so the property will appear more valuable. Therefore, the store has been offered a "great deal" (owner's words) on a new 5-year lease. The new lease calls for no rent for 9 months, then payments of $2,600 per month for the next 51 months. The lease cannot be broken, and the store's WACC is 12 percent (or 1 percent per month). Should the new lease be accepted? (Hint: Be sure to use 1 percent per month).
Business
1 answer:
liubo4ka [24]2 years ago
8 0

Solution:

Sum      Present value of 60 payments

             Rent                                              2000

            Periods                                           60

            Rate                                                 12%

        Present value of 60 payments    $94,405 (Excel = PV( 1% , 60 , 2000))

       Future value of these payments at t=9

       Future value                                   $1,03,249.99(Excel=FV(1%,9,94,405)

       Periods                                              51

        Rate                                                 12%

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Getaway Travel Company reported net income for 2021 in the amount of $68,000. During 2021, Getaway declared and paid $18,000 in
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Answer:

$0.35 per share

Explanation:

According to the scenario, computation of the given data are as follows,

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Preferred cash dividend = $18,000

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Basic Earning per share = ( Net income - Preferred cash dividend) ÷ Outstanding common shares

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= $0.35 per share

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7 0
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a. involve a high degree of trust and confidence.

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under the securties act of 1933, which statements are true regarding a regulation D private placement exemption? adveristing per
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7 0
3 years ago
MV Corporation has debt with market value of ​million, common equity with a book value of ​million, and preferred stock worth mi
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Answer:

The Weighted Average cost of capital measures the cost to the company of its current capital structure by using the weights of the various capital measures. WACC usually uses market values so;

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Common Equity

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