Answer:
$289000
Explanation:
Effective Gross Income (EGI): Effective Gross Income is calculated by deducting the Vacancy and collection (V&C) loss from Gross Potential Income (GPI).
First year gross potential income (PGI) is $340,000
Vacancy and collection (V&C) loss is 15% of gross potential income
Therefore, (V&C) allowance = [$340,000 15%]
= $51,000
Calculate Effective Gross Income (EGI) for the first year of operations:
Item
Amount
Potential gross income (PGI)
$340,000
Less: V&C allowance (at 15% of PGI)
($51,000)
Effective Gross Income ( EGI )
$289,000
Hence the EGI is $289,000
Answer:
The correct answer is letter "D": behavioral.
Explanation:
In market segmentation, classifying customers by behavior implies analyzing their consumption patterns to find out what type of product they are likely to buy under what conditions. This research allows companies to know what each type of client is looking for so the corporation can dedicate a tailored item for each market sector. By doing so, the firm increases its opportunities to generate more sales.
If you had invested $100 in 1972 in the 500 stocks of the s&p500 index $1,612
<h3>What is
stocks ?</h3>
A stock is a type of investment that represents ownership in a portion of the issuing company and is commonly referred to as equity. Owners of shares, often referred to as units of stock, are entitled to a portion of the company's assets and earnings in proportion to the number of shares they own.
The majority of private investors base their portfolios on equities, which are often bought and sold on stock exchanges. Stock trades must adhere to government regulations intended to protect investors from deceptive practices.
A sort of instrument known as a stock, which is commonly exchanged on stock exchanges, represents the holder's ownership interest in the issuing company.
Corporations issue stock as a means of raising capital to fund their operations.
Common are the two main stock classifications.
The two primary stock categories are common and preferred.
To learn more about stocks from the given link:
brainly.com/question/25818989
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Answer:
.b. It is appropriate to use the constant growth model to estimate a stock's value even if its growth rate is never expected to become constant
TRUE The multi-stage valuation considers different grow rates for the subsequent years
Explanation:
a. Two firms with the same expected free cash flows and growth rates must also have the same value of operations
FALSE as their cost of capital can differ.
c. If a company has a weighted average cost of capital WACC = 12%, and if its free cash flows are expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.
FALSE dividend yield is a relationship between price and dividend it doesn't considers the growth of the company, just current values.
d. The value of operations is the present value of all expected future free cash flows, discounted at the free cash flow growth rate
FALSE They are discounted at the difference between return and grow rate
e. The constant growth model takes into consideration the capital gains investors expect to earn on a stock.
FALSE It considers the capital gains as speculations
The answer is $3,480,817.37 The contract is worth <span>$3,480,817.37 today at a discount rate of 8.7 percent.
</span>PV = $1.1M + ($1.3M/1.087) + ($1.4M/1.087 square<span>) = $3,480,817.37</span>
