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Ludmilka [50]
3 years ago
13

A property is leased for $24,000 per year although market rents are currently $27,500 per year and are expected to increase by 2

% per year. The property is expected to be sold at the end of year 10 based on a 10% terminal cap rate applied to the eleventh year NOI. The current lease on the property will expire at the end of year 10 so the property can be leased in the eleventh year at market rates. What is the value of the leased fee estate based on an 11.5% discount rate
Business
1 answer:
zhannawk [14.2K]3 years ago
6 0

Answer:

the present vlaue of the ledased property = $251,298

Explanation:

the free market value in 10 years = ($27,500 x (1 + 2%)¹⁰) / 10% = $335,223

free cash flows year 1 - 9 = $24,000

free cash flow year 10 = $359,223

discoutn rate = 11.5%

using a financial calculator, the present value of the property = $251,298

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You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently Janua
Oduvanchick [21]

Answer:

the yield to maturity for the bond issued by Xenon, Inc = 6.92%

Explanation:

<em>IMPORTANT NOTE: The data of the calculation was obtained from an online book.</em>

<em />

Yield to Maturity [YTM] of the Bond

Yield to Maturity [YTM] = Coupon Amount + [(Par Value – Bond Price) / Maturity Years] / [(Par Value + Bond Price)/2]

Par Value = $2,000

Coupon Amount = $126 [$2,000 x 6.30%]

Bond Price = $1,885.82 [$2,000 x 94.291%]

Maturity Years = 15 Years [Jan 15,2016 to Jan 15,2031]

Therefore, Yield to Maturity [YTM] = Coupon Amount + [(Par Value – Bond Price) / Maturity Years] / [(Par Value + Bond Price)/2]

= [$126 + {($2,000 – $1,885.82) / 15 Years)] / [($2,000 + $1,885.82) / 2}]

= [($126 + $7.61) / $ 1,942.91]

= 0.0692

= 6.92%

<h2> </h2><h2>Therefore, the yield to maturity for the bond issued by Xenon, Inc = 6.92%</h2>
8 0
3 years ago
Classify each of the studies as either descriptive or inferential. Explain your answers.
Ludmilka [50]

Answer: Descriptive statistics uses the data to provide descriptions of the population, either through numerical calculations or graphs or tables. Inferential statistics makes inferences and predictions about a population based on a sample of data taken from the population in question.

Explanation: Scottsdale, AZ $167 0.973 12.43%

Washington, DC $436 0.990 2.88%

San Francisco $636 1.026 6.55%  

as Vegas, NV $74 1.000 19.45%

Nashville, TN $106 0.973 18.09%

They are all Inferential study

8 0
3 years ago
To copy text in a word document to an Excel spreadsheet, you should first format the text as a Word table or as text separated b
geniusboy [140]

Answer:

Commas, tabs, semicolon, or spaces.

Explanation:

In Excel, commas, tabs, semicolon, or spaces are known as delimited values, and you can tell excel which option your data has in order to separate it. For example, if you copy and paste text that will be used for column header you can use the "Text to Columns" tool, click "delimited" and next, and then check the box next to which type of separator you are using (commas, tabs, etc). The tool will then separate every item of text with that type of separator into different columns.

5 0
3 years ago
Sunland Company reported the following information for the current year: Sales (64000 units) $1280000, direct materials and dire
tatuchka [14]

Answer:

45%

Explanation:

Given the following :

Sales unit = 64000

Sales revenue = $1,280,000

Direct materials and directly labor = $640,000

Other variable cost = $64,000

Fixed cost = $360,000

Contribution margin ratio:

(Sales revenue - variable expenses) / sales revenue

Total variable expenses = (Direct materials and directly labor + other variable expenses)

Total variable expenses = (640000 + 64000) = $704,000

Contribution margin ratio :

$(1,280,000 - 704,000) / $1,280,000

$576,000 / $1,280,000

= 0.45

0.45 * 100 = 45%

8 0
3 years ago
Janine buys swimwear for a chain of apparel stores. At a recent trade show, she took the opportunity to meet with a few vendors.
Rama09 [41]

Answer:

B. inform her divisional merchandiser manager of the proposal

Explanation:

Since in the question it is mentioned that the Janine buys from each season also she knows that this thing would become benefiical what European tourists are wearing and applying this in an assortment for the customers that are targeted

So before discussion with the vendor first she reports the divisional merchandiser manager regarding this proposal

3 0
3 years ago
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