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Dvinal [7]
3 years ago
9

A property is financed with an 85% LTV at 10% interest over 25 years. What would the estimated BTIRRE be on equity given that th

e BTIRRP is 10.75%?
a. ​10.1%
b. ​10.4%
c. ​15.0%
d. ​13.2%
Business
1 answer:
Fofino [41]3 years ago
7 0

Answer:

c. ​15.0%

Explanation:

First we need to calculate the Debt to equity ratio

Debt to equity ratio = Debt / Equity

Debt to equity ratio = 85% / 15% = 5.66667

Now calculate BTIRRE  using following formula

BTIRRE  = BTIRRP + ( BTIRRP - BTIRRD ) x Debt to equity ratio

Where

BTIRRP = 10.75%

BTIRRD = 10%

Placing values in the formula

BTIRRE  = 10.75% + ( 10.75% - 10.00% ) x 5.66667

BTIRRE  = 10.75% + 4.25%

BTIRRE  = 15.00%

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For each of the pairs below, determine whether they are positively correlated, negatively correlated, or uncorrelated.a. Time sp
KonstantinChe [14]

Answer:

A. Positively Correlated ; B. Negatively Correlated ; C. Uncorrelated

Explanation:

Correlation is the mutual / similar change direction relationship between 2 variables .

If 2 variables change in same direction (one increase - other increase , one decrease - other decrease) , they are positively correlated .

If 2 variables change in opposite direction (one increase - other decrease , one decrease - other increase) , they are negatively correlated .

A. More time spent studying implies higher test scores & less time spent studying implies lower test score . So , they are positively correlated .

B. Vaccination (being protection from illness) increase implies less illness , if decrease implies more illness . So , they are negatively correlated .

C. Soft Drink & Music seem to have no logical mutual movement connectivity . So , they are Not Correlated / Uncorrelated .

4 0
3 years ago
A comparable property sold four months ago for $287,000. If the appropriate adjustment for market conditions is -0.50% per month
Ivan

Answer:

$281,260

Explanation:

Question mentions no compounding takes place here.

So adjusted property value = Value n period ago * [1+ (Adjustment factor * n)]

Adjusted property value = 287000 * [1+(-0.50% * 4)] = 287000 * [1+(-2%)] = 287,000 * 98% = $281,260 --> Answer

6 0
3 years ago
With the rapid industrialization and improved transportation of the 1880s, more product producers were chasing the growing purch
Elis [28]

Answer: Brands

Explanation:

 The development of brands is one of the type of marketing method which strengthen our various types of products and the services in an organization.

The importance of the development of brand is that it helps in maintaining the quality, consistency of product, trust and value the customers requirement.

The following are the phase of the brand development are as follows:

  • Brand identity
  • Brand strategy
  • Brand management
  • Graphic design

According to the given question, due to the rapid industrialization the organization are basically forced for differentiating the given products and the services in the development of brands.

3 0
3 years ago
Blake was asked by his team leader to explore and evaluate the best ways to communicate with customers online. Although Blake is
eduard

Answer:true

Explanation:

Being a millennial, he ought to have gathered enough experience even before joining the new company. Mr Blake to have gotten to the fleet of millennial would be able to think critically to access the customers online and also evaluate them.

7 0
3 years ago
Read 2 more answers
Sykora Corp. sells $450,000 of bonds to private investors. The bonds are due in 5 years, have a 6% coupon rate and interest is p
Nikitich [7]

Answer:

(B) 9%

Explanation:

In order to calculate this you just have to do a simple rule of three with the 100% being the 450,000 you withdraw from the paid money the selling price of the bonds:

490,222-450000= 40,222

Now we do the rule of three using 450,000 as 100%:

\frac{450,000}{100}=\frac{40,222}{x} \\x=\frac{40,222*100}{450,000}\\ x=8,93 %\\

So the actual rate would be 8,93 which is closest to 9% so that would be the answer.

5 0
3 years ago
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