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kipiarov [429]
3 years ago
9

A small multifamily property generates $50,000 in rental income, $10,000 in expenses, and $25,000 in debt service. The property

appreciates about $25,000 each year. What is the cash flow on this property?
Business
1 answer:
Ivenika [448]3 years ago
3 0

Answer:

The cash flow on this property is $15,000

Explanation:

The computation of the cash flow on the property is shown below:

= Rental income - expenses - debt service

= $50,000 - $10,000 - $25,000

= $15,000

The property appreciated amount would not be considered in the computation part because it does not create any cash flow. So, this part would be ignored. Therefore, other items would be considered in the computation part.

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even though an open innovation model enables the firm to take advantage of external innovation conducted by other firms, it does
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1 year ago
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belka [17]

Answer:

Multi-level marketing.

Explanation:

A business organization that is run with multi-level marketing strategy typically has 3 sources of income:

- The amount of money that each person have to pay in order to gain the membership status.

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5 0
2 years ago
ME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. a. What is the equity
Lera25 [3.4K]

Answer:

8.06

Explanation

  • Debt equity ratio=Debt÷ Equity
  • Debt÷Equity=0.57
  • Equity=620,000 in this question
  • Debt=620,000*0.57=353,400.
  • Assets=Debt+Equity
  • Assets in this case=353,400+620,000=973,400
  • Return on asset=Profit for the year=7.9%*973,400=76898.6
  • Equity Multiplier=Total Equity/Profit for the year
  • Equity Multiplier=620,000/76898.6=8.06

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3 years ago
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