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poizon [28]
3 years ago
13

If the capitalization rate on a building that produces a $20,000 annual income is 10 percent, what is the estimated value of the

building?
Business
1 answer:
AysviL [449]3 years ago
7 0

Answer:

Value of building = $200,000

Explanation:

Provided capitalization rate = 10%

Annual income = $20,000

Estimated value of asset = \frac{Annual\ Income}{Capitalization\ Rate}

Since, all the information related to variables used in calculating value are provided we can compute the value of building.

Value of building = \frac{20,000}{0.10} = $200,000

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How do you make personal choices between satisfying your wants and your needs?
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You just need to find time for both.
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List the four responsibilities businesses have to customers.
Rainbow [258]

Answer:

good luck bro you got this

Explanation:

to provide after-sale service on the basis of the nature of a product

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One year ago, you purchased a 6 percent coupon bond with a face value of $1,000 when it was selling for 98.6 percent of par. Tod
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Answer:

option (A) $86

Explanation:

Data provided in the question:

Coupon rate = 6%

Face value of bonds = $1,000

Purchasing price (i.e the selling percentage at the time of purchase )

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Selling price = 101.2% of par

Thus,

Annual Coupon payment = Face value × Coupon rate

= $1,000 × 6%

= $60

Now,

Purchase price = $1,000 × 98.60%

= $986

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= $1,000 × 101.20%

= $1,012

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= $1,012 + $60 - $986

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Hence,

The correct answer is option (A) $86

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The calculation of WACC involves calculating the weighted average of the required rates of return on debt, preferred stock, and
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Answer:

37.88 %

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The weight on preferred stock mean, what percentage out of the Total Market Value of the Sources of Capital pooled together is taken by Preferred Stock.

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Preferred Stock         $2.5 million

Common Equity          $1.8 million

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therefore,

Weight on preferred stock = $2.5 million / $6.6 million x 100 = 37.88 %

8 0
3 years ago
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