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Ghella [55]
3 years ago
9

Johnson is appraising two parcels of property. One is leased to the government for use as a post office; the other is leased to

a private owner for use as a hardware store. Both parcels have recently started long-term leases. The capitalization rate of the post office property as compared to the capitalization rate of the hardware store property will be:
Business
1 answer:
Arada [10]3 years ago
4 0

Answer:

Lower.

Explanation:

The capitalization rate is mainly used in real estate and is a measure of the rate of return on a property, based on the net operating income it is expected to generate.

Johnson in appraising two parcels of property, leased one to the government for use as a post office while the other parcel of property, is leased to a private owner for use as a hardware store. Having the knowledge that the parcels have recently started long-term leases. The capitalization rate of the post office property used by the government as compared to the capitalization rate of the hardware store property used by the private owner will be lower.

The capitalization rate of the post office property would be lower because, real-estate investors will not expect much returns on the investment as it's a less risky investment. The post office is less likely than a hardware store to run out of business or go bankrupt by virtue of being a governmental agency or public company.

Hence, the hardware store will need a higher capitalization rate in comparison with post office property.

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Yes great promotion and connections for an app
8 0
4 years ago
Atlantis Fisheries issues zero coupon bonds on the market at a price of $455 per bond. If these bonds are callable in 5 years at
igomit [66]

Answer:

The yield to call is 2.24%.

Explanation:

To calculate the yield to call, you can use the following formula:

YTC = (C + (CP - P) / t) / ((CP + P) / 2)

YTC= Yield to call

C= Annual Coupon: 0

CP= Call price of the bond: $509

P= Price of the bond: $455

t= time remaining until call date: 5

YTC= (0+(509-455)/5)/((509+455)/2)

YTC=(54/5)/(964/2)

YTC= 10.8/482

YTC= 0.0224= 2.24%

3 0
3 years ago
Read 2 more answers
The VALS framework
Scrat [10]

Answer:

The VALS framework examines the intersection of psychology, demographics, and lifestyles.

Explanation:

The VALS system (Values ​​and Lifestyles), arose from the need to explain the changes that American society presented in the 1960s. This classification, developed by the Stanford Research Institute, is based on the concept that people throughout their lives go through different stages, and each stage affects their attitudes, behavior and psychological needs. This system, related to purchasing behavior, establishes in general terms that people are grouped into three basic consumer orientations:

-Principle-oriented consumers. They buy taking into account "how the world should be".

-Consumers oriented by status; They base their purchases on the opinions and attitudes of other people.

-Action oriented consumers; These consumers base their purchase decisions on the activity, variety and risk.

In turn, each of these groups acquires other dimensions based on the level of income, health, education and self-confidence.

8 0
3 years ago
The principle of diminishing marginal utility states that the additional utility a consumer receives from an additional unit of
ICE Princess25 [194]

The correct answer is D) All of these scenarios demonstrate decreasing marginal utility.

The scenario that demonstrates decreasing marginal utility is the three mentioned above.

The principle of diminishing marginal utility states that the additional utility a consumer receives from an additional unit of a good or service decreases as consumption of it increases. So that is the case of example number one when you are grateful that you have your air conditioning while you are outside on the streets under the sunshine, but when you get back home, after cooling down, you feel like normal, and do not appreciate that so much or maybe you start questioning if the air conditioning bill and power bill are too much.

The same in the case of Beth and the second or third pillow, she doesn't enjoy them too much and thinks that the third one was unnecessary. Or James at the buffet. It is all you can eat but his dish is half empty.

7 0
4 years ago
If labor is the only variable input and it costs $15 per hour and if the marginal product of labor is 3 units per hour, the shor
slamgirl [31]

Based on the information given  the short-run marginal cost of 1 unit of output is approximately $5.00.

Using this formula

Marginal cost=Change in cost/Change in quantity

Where:

Change in cost=$15 per hour

Change in quantity=3 units per hour

Let plug in the formula

Marginal cost=$15/3

Marginal cost=$5.00

Inconclusion  the short-run marginal cost of 1 unit of output is approximately $5.00.

Learn more here:<em>brainly.com/question/16043702</em>

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