The demand for seats in 10

You are considering the purchase of an industrial warehouse. The purchase price is $1 million. You expect to hold the property f

Oliga [24]

Answer:

A. Cap rate = Debt Service/Current market price of asset

= $70,000/$1,000,000 * 100

= 7%

B. Debt coverage ratio = Net Operating Income/Debt Service

= $108,000/$70,000

= 1.54

C. The largest loan that can be obtained (other terms held constant) if the lender requires a debt service coverage ratio of at least 1.2 is:

= ($70,000 * 1.2)/10%

= $840,000

Explanation:

a) Data and Calculations:

Purchase price of the industrial warehouse = $1 million

Loan to finance acquisition = $700,000

Interest rate = 10%

Term of loan = 30 years

Type of loan repayment = interest-only payments

Annual debt service = $70,000 ($700,000 * 10%)

Effective gross income $135,000

Operating expenses 27,000

Net Operating Income $108,000

8 0

3 years ago

Bamp Co. has net income of $48,200, sales of $947,100, a capital intensity ratio of .87, and an equity multiplier of 1.53. What

vodomira [7]

Answer:

Option C is correct (8.95%)

Return on equity is 8.95%

Explanation:

Option C is correct (8.95%)

Return on Equity:

It is the measure of how well company is making profit in relation to stock holder equity.

General Formula formula for return on equity is:

ROE= Net Income/Shareholder Equity

In our Case:

Formula will become:

$ROE=\frac{Net\ Income}{Sales*Capital\ Intensity\ Ratio}* Equity\ Multiplier$

Net Income= $48,200

Sales=$ 947,100

capital intensity ratio=0.87

equity multiplier=1.53

$ROE=\frac{\$48,200}{\$947,100*0.87}*1.53\\ROE=0.08950\\ROE=8.95\%$

Return on equity is 8.95%

4 0

4 years ago

What would be the most challenging part of working in Information technology

stellarik [79]

Answer:

The most challenging part of working in information technology are as given below:

1. Workload

2. Cybersecurity

3. Skills gaps

4. Digital transformation

5. Cloud computing

6.Budget

7.Leadership support in prioritizing new skills development

8.Analytics and data management

9.Automation

Explanation:

Many have been facing a new hurdle—not confined to IT. As millions of people adjust to the new norm of remote working, employees, as well as supervisors had to learn quickly how to improve virtual communication and collaboration. For those who don't have the habit of working from home, it may be a fight to avoid distractions that aren't a factor if you work at an office. (e.g. family members, house chores, Netflix).

In the event of a difficult transition to remote work, we offer various training courses designed specifically to help teams maximize virtual technologies and enhance soft skills, which are more critical when staff is in separate places.

4 0

4 years ago

Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $

sergij07 [2.7K]

Answer:

23%

Explanation:

The computation of the average rate is shown below:

But before that following calculations to be done

Annual Depreciation is

= ($132,000 - $16,000) ÷ 10

= $11,600

The Annual Net Income would increase by

= $34,000 - $5,380 - $11,600

= $17,020

Now Average Investment is

= ($132,000 + $16,000) ÷ 2

= $74000

The Average rate of return is

= Increase in Annual Net Income ÷ Average Investment

= $17,020 ÷ $74,000

= 23%

4 0

3 years ago

Which of the following definition below describes a wall opening

Tcecarenko [31]

I didn't find the answer for an expression for business regarding an opening wall. The one I know is an opening at least 30"" high and 18" wide in a wall or partition through which people may fall

8 0

3 years ago