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Eduardwww [97]
2 years ago
5

What is universal default?

Business
1 answer:
nikitadnepr [17]2 years ago
6 0

Answer:

<em>Universal default is the term for a practice in the financial services industry in the United States for a particular lender to change the terms of a loan from the normal terms to the default terms (i.e. the terms and rates given to those who have missed payments on a loan) when that lender is informed that their customer has defaulted with another lender, even though the customer has not defaulted with the first lender.</em>

<em></em>

<em>mark me as brainly </em>

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The potential gross income of a warehouse is $4,200 a month and the vacancy rate is 2 1/2%. The taxes are $3750, the monthly mai
Marrrta [24]

Answer:

$238,320

Explanation:

First we should determine the total yearly revenue:

$4,200 (monthly income) x 12 = $50,400 - 2.5% (vacancy rate) = $49,140

Now we must determine the expenses:

monthly maintenance costs = $350 x 12 = $4,200 per year

taxes = $3,750 per year

monthly reserves for replacement = $250 x 12 = $3,000 per year

management fees = $500 x 12 = $6,000 per year

quarterly landscaping fees = $600 x 4 = $2,400 per year

Total revenues                                                       $49,140

maintenance costs                                                ($4,200)

taxes                                                                       ($3,750)  

reserves for replacement                                     ($3,000)

management fees                                                 ($6,000)

<u>landscaping fees                                                   ($2,400)   </u>

net profit per year                                                 $29,790

warehouse value = $29,790 / cap rate = $29,790 / 12.5% = $238,320

5 0
3 years ago
Orwell Building Supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after
EleoNora [17]

Answer:

Best estimate of the current stock price= $42.64

Explanation:

Price of the stock today = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}.

where P2 = \frac{D3}{ke-g}

D0=$1.75

D1=$1.75(1.25)

D2=$1.75(1.25)(1.25)

D3=$1.75(1.25)(1.25)(1.06)

Price of the stock today = \frac{1.75(1.25)}{(1+0.12)^1}+\frac{1.75(1.25)(1.25)}{(1+0.12)^2}+\frac{1.75(1.25)(1.25)(1.06)}{(0.12-0.06)(1+0.12)^2}. = $42.64

8 0
3 years ago
A firm is producing an output such that the benefit from one more unit is more than the cost of producing that additional unit.
Burka [1]
Losing they're investment dollars. calculating the cost of production.
5 0
2 years ago
On January 1, 1997, an investment account is worth 100,000. On April 1, 1997, the value has increased to 103,000 and 8,000 is wi
loris [4]

Answer:

(B) 6.25%

Explanation:

January 1, 1997 = $100,000

April 1. 1997 = $103,000 - $8,000 = $95,000

January 1, 1999 = $103,992

annual interest rate for 1997 = i = (x - 100,000 + 8,000) / [100,000 - 8,000(1 - ³/₁₂) = (x - 100,000 + 8,000) / [100,000 - 8,000(1 - 0.25) = (x - 92,000) / 94,000

x = 92,000 + 94,000i

annual interest rate for 1998 = 1 + i = 103,992/x

x = 103,992/(1 + i)

0 = x(1 + i) - 103,992

now we replace x by 92,000 + 94,000i

0 = (92,000 + 94,000i)(1 + i) - 103,992

0 = (94,000 (1 + i) - 2,000)(1 + i) - 103,992

we now replace 1 + i by Y

0 = (94,000Y - 2,000)Y - 103,992

0 = 94,000Y² - 2,000Y - 103,992

using a calculator, Y = 6.25%

4 0
3 years ago
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for t
elena55 [62]

Answer and Explanation:

Revenue                              $160,000

Rental Costs                      $30,000

Variable Costs                      $50,000

Depreciation                      $10,000

Profit before tax              $70,000

Tax(35%)                              $24,500

Net Income                      $45,500

Operating cash flow

a) Dollars in minus dollars out

Revenue ? rental costs ? variable costs ? taxes = $160000 -$30000-$50000-$24,500 = $55,500

b) Adjusted accounting profits

Operating cash flow = Net income + depreciation = $45,500 + $10,000 = $55,500

c) Add back depreciation tax shield

Operating cash flow = [(Revenue ? rental costs ? variable costs) × (1 ? 0.35)] + (depreciation × 0.35)]

= ($160,000-$30000-$50,000)*0.65 + $10,000*0.35 = $55,500

Yes, the above approaches result in the same value for cash flow

4 0
3 years ago
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