Answer:
A cash receipts budget of flying consumers.
Explanation:
Operational budget is defines as all the profits and expenses a business realises as a result of planning it's operations.
Usually an operational budget is set before activities begin, and is a target to be achieved.
For an airline cash receipts of flying customers is not a revenue realised as a result of planning operations, so this is the correct answer.
However a fuel budget, material budget for parts, and labour budget for flight crew are operational budgets.
Answer:
a. Weighted average flotation cost
= FCE(E/V) + FCD(D/V)
= 7(100/170) + 4(70/170)
= 4.12 + 1.65
= 5.77%
V = E + D
V = 100 + 70 = 170
b. Flotation cost of debt financing
= 4% x $18 million
= $0.72 million
True cost of the building after taking flotation cost into account
= $18 million + $0.72
= $18.72
Explanation:
The weighted average flotation cost is the flotation cost of equity multiplied by the proportion of equity in the capital structure plus flotation cost of debt multiplied by proportion of debt in the capital structure. The total market value is 100 + 70 = 170. Since the debt-equity ratio is 0.7. Debt takes 70 while equity takes 100. The proportion of equity in the capital structure is 100/170 while the proportion of debt in the capital structure is 70/170.
Answer:
landlord´s responsibilities:
- working appliances: repair or replace broken appliances, unless tenant is responsible because they didn't use them properly
- removal of bedbugs: the owner must provide warranty of habitability, so any type of bedbugs, or other insect or animal infestation should be eliminated.
- fixing locks and windows: repair or replace broken locks or windows, unless tenant is responsible because they didn't use them properly
tenant's responsibilities: (besides paying the rent)
- working appliances: the tenant must operate appliances in a reasonable manner
- basic housecleaning: the tenant is responsible for keeping the house clean and removing garbage
- fixing locks and windows: the tenant must use them in a reasonable manner
Answer:
D) All of the above are correct
Explanation:
Many people indeed do not know that price controls produce shortages, and we do not only refer to the general public, but also many politicians, who are ignorant of economic theory.
Property owners are politically unpopular because they are frequently perceived as being more priviliged and not paying their fair share. Populist politicans can use them as scapegoats to rile up support.
Many people benefit from rent controls, from owners colluding to the government, to real estate cartels, to tenants, or the government itself it it holds public housing.
Answer:
Consider the following calculation
Explanation:
Yield to maturity is not given here. So we assume that Yield to maturity is 10%.
Present value of interest payment :
PV = A*PVIFA (n= 40,i =10%)
= 170*9.7791
= 1662.45
Present value of principal payment at maturity
PV = FV*PVIF (n= 40,i =10%)
= 1000 * .0221
= 22.10
Current price of bond = 1662.45+22.10
= $ 1684.55
