1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
HELP ME PLS ASAP PPSLSPLSPSSLSPS
klio [65]
It’s really blurry i can’t see
8 0
2 years ago
Read 2 more answers
A music teacher asked her students to set a really hard goal, such as increasing their practice time by 10 hours per week, which
PilotLPTM [1.2K]
The answer is Stretch Goal.  It is also called a Stretch Target, it is <span>a high and difficult level of success that a student must achieve if they are to be considered to be doing their job in a satisfactory way.  Practicing 10 hours a week would cause the students to reach beyond what they think is possible.</span>
5 0
3 years ago
Athena Company provides employee health insurance that costs $14,500 per month. In addition, the company contributes an amount e
erik [133]

Answer:

Explanation:

130500

3 0
3 years ago
Rowdy's Restaurants cash flow (in millions) Cash received from: Customers $4,200 Interest on investments 360 Sale of land 260 Sa
uranmaximum [27]

Answer:

$440 millions

Explanation:

The computation of the net cash inflows (outflows) from operating activities is shown below:

Cash flow from Operating activities  

Cash received from Customers $4,200

Interest on investments $360

Less: Cash paid

Interest on debt -$460

Income tax -$240

Purchase of inventory -$2,600

Operating expenses -$820

Net Cash flow from Operating activities         $440 millions

8 0
3 years ago
The following information pertains to Blossom Company.
Dimas [21]

Answer:

A. Adjusted cash balance per bank $13,545

Adjusted cash balance per books $13,545

B. July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

July 31

Dr Bank service charge $63

Cr Cash $63

Explanation:

A. Preparation of a bank reconciliation at July 31, 2010

PHAROAH COMPANY

Bank Reconciliation

31-Jul-10

Cash Balance per bank statement $10,962

Add: Deposit in transit $4,473

$15,435

Less: Outstanding checks $1,890

Adjusted cash balance per bank $13,545

Cash balance per books $11,088

Add: Electronic fund transfer received $2,520

$13,608

less; Bank service charge $63

Adjusted cash balance per books $13,545

B. Preparation of the adjusting entries at July 31 on the books of Sunland Company.

July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

(To record electronic fund transfer received by bank)

July 31

Dr Bank service charge $63

Cr Cash $63

(To record bank service charges )

4 0
3 years ago
Other questions:
  • Most codes of ethics created by professional organizations have two main parts:________
    14·1 answer
  • harry decides to borrow some money from a bank? what type of assignment will harry probably use to secure the loan
    7·1 answer
  • Both Schedules M-1 and M-3 require taxpayers to identify book-tax differences as either temporary or permanent. T/F
    15·1 answer
  • Bill Pope has developed a new device that is so exciting he is considering quitting his job in order to produce and market it on
    9·1 answer
  • The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in produ
    10·2 answers
  • On a shopping trip, Melanie decided to buy a light blue coat made from woven fabric. A tag on the coat stated that the price was
    14·1 answer
  • Cobe Company has already manufactured 28,000 units of Product A at a cost of $28 per unit. The 28,000 units can be sold at this
    10·1 answer
  • Which of the following are correct descriptions of large corporations? (You may select more than one answer. Single click the bo
    12·1 answer
  • Based on the expectancy theory, managers who want to motivate their employees should: (select 2 that are true)
    5·1 answer
  • Which of the following is a reason that a chief executive officer might commit financial statement fraud?a. To receive or increa
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!