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gogolik [260]
3 years ago
7

Suppose you are considering the purchase of an apartment building that has 12 units that can be rented out at $1,050 per month.

You have estimated operating expenses and expected vacancy and collection losses for the first year to be $35,700 and $30,240, respectively. You also have estimated that you will be able to generate an additional $3,840 in the first year from garage rentals on the property. If the expected purchase price of the property is $1,100,000 and you are planning on making a 10% down payment. Calculate the debt yield ratio.a. 8.10%b. 8.61%c. 9.00%d. 12.05%
Business
2 answers:
ivanzaharov [21]3 years ago
8 0

Answer:

The correct answer is c. 9.00%

good luck

sergij07 [2.7K]3 years ago
6 0

Answer:

c. 9.00%

Explanation:

The formula to compute the debt yield ratio is presented below:

Debt yield ratio = Net operating income ÷ debt amount

where,

Net operating income would be

= Rent- Operating expenses - Expected vacancy and collection losses + Garage rentals on the property

= $151,200 - $35,700 - $30,240 + $3,840

= $89,100

And, the debt amount would be

= Expected purchase price × (1 - Down payment rate)

= $1,100,000 × (1 - 10%)

= $990,000

So, the ratio would be

= $89,100 ÷  $990,000

= 9%

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In a database context, a form is a window or screen that contains numerous fields, or spaces to enter data. Each field holds a field label so that any user who views the form gets an idea of its contents. A form is more user friendly than generating queries to create tables and insert data into fields.

7 0
3 years ago
Online retailers lose approximately 25% of their customers every year. Unfortunately, due to the highly competitive camping gear
suter [353]

Answer:

CLV =  [(GC * r) / (1 + i - r)] - AC]

Explanation:

CLV is the customer lifetime value which is the calculation of net profit during the tenure of relationship with the clients and customers.

The formula for CLV calculation is :

CLV = [(GC * r) / (1 + i - r)] - AC]

Where,

GC is annual gross contribution,

r is retention rate of customers

i is discount rate

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3 0
3 years ago
These expenditures were incurred by Oriole Company in purchasing land: cash price $60,700, assumed accrued taxes $5,260, attorne
yulyashka [42]

Answer:

$76,050

Explanation:

Given that,

cash price = $60,700

assumed accrued taxes = $5,260

attorney’s fees = $2,170

real estate broker’s commission = $3,310

clearing and grading = $4,610

Cost of the land:

= cash price + assumed accrued taxes + attorney’s fees + real estate broker’s commission + clearing and grading

= $60,700 + $5,260 + $2,170 + $3,310 + $4,610

= $76,050

6 0
3 years ago
An individual has $2000 in physical assets, and $600 in cash initially. This person faces the following loss distribution to the
RUDIKE [14]

Answer with Explanation:

Probability   Expected Loss           Loss Forecast

0.5                          0                                0

0.1                        200                              20

0.2                       400                              80

0.1                       1000                             100

0.1                       2000                            200

1.00                     Total                             400

Now,

A. Final Wealth with no Insurance = Physical Assets of the person + Cash Assets - Total Loss Forecast

By putting values, we have:

Final Wealth with no Insurance = $2,000 + $600 - $400 = $2,200

B. For Full insurance, we will not consider expected loss because we will receive Insurance Premium instead:

Final Wealth with Full Insurance = Physical Assets + Cash Assets - Insurance Premium

By putting values, we have:

Final Wealth with Full Insurance = $2,000 + $600 - $600 = $2,000

C. Final Wealth with Partial Insurance and $200 deductibles = Physical Assets + Cash Assets - Insurance Premium For Partial Coverage - Deductible

By putting values, we have:

Final Wealth with Partial Insurance and $200 deductibles = $2,000 + $600 - $450  - $200 = $1,950

D. Final Wealth with 75% Co-insurance = Physical Assets + Cash Assets - Insurance Premium - Co-payment

By putting values, we have:

Final Wealth with 75% Co-Insurance = $2,000 + $600 - $450 - (75% * $400)

= $1,850

E. Final Wealth with Partial Insurance and $1,000 Upper Limit = Physical Assets + Cash Assets - Insurance Premium - Maximum Loss Expected

By putting values, we have:

= $2,000 + $600 - $450 - (Probability 0.1 * $2,000) = $1950

From the above, we can say that the best option here in descending order is as under:

1.  A. Final Wealth with no Insurance

2.  B. With Full insurance

3.  C. Final Wealth with Partial Insurance and $200 deductibles & E. Final Wealth with Partial Insurance and $1,000 Upper Limit

4.  E. Final Wealth with Partial Insurance and $1,000 Upper Limit

5 0
3 years ago
7. Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that t
ser-zykov [4K]

Answer:

$17,500

Explanation:

Given that,

Actual factory overhead for the year = $1,375,000

Estimated overhead = $1,250,000

Estimated machine hour = 50,000

Total machine hours for the year = 54,300

Predetermined rate per hour:

= Estimated overhead ÷ Estimated machine hour

= $1,250,000 ÷ 50,000

= $25 per hour

Applied overhead:

= Predetermined rate per hour × Total machine hours

= $25 × 54,300

= $1,357,500

Therefore, the under-applied amount for the year:

= Actual factory overhead - Applied overhead

= $1,375,000 - $1,357,500

= $17,500

4 0
3 years ago
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