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Ksju [112]
3 years ago
11

The first-year NOI for an office building is $150,000. A lender is willing to provide financing up to a 1.5 debt-coverage ratio.

If the mortgage has a 5-year maturity, 25-year amortization period, and 6% rate of interest, what is the maximum loan size that you can obtain assuming that payments are made on an annual basis?
Business
1 answer:
Hoochie [10]3 years ago
5 0

Answer:

the maximum loan size is $1,278,335.62

Explanation:

The computation of the maximum loan size is as follows:

= (NOI first year ÷ debt coverage rate) × 1 ÷ (rate of interest) × (1 - 1 ÷ (1 + rate of interest)^number of years)

= ($150,000 ÷ 1.5) × 1 ÷ (6%) × (1 - 1 ÷ (1 + 6%)^(25))

= $1,278,335.62

hence, the maximum loan size is $1,278,335.62

We simply applied the above formula

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Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2015. Exactly 6 months later, the A
Pachacha [2.7K]

Answer:

C) ABC 5% and DEF 5.7%

Explanation:

Data provided in the question:

Purchasing Cost of Stock ABC purchased = $40 per share

Purchasing Cost of Stock DEF purchased = $35 per share

Time = 6 months

Selling price of share of ABC = $42 per share

Selling price of DEF share = $36

Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months

Thus,

Total dividend paid to DEF = $0.5 × 2

= $1

Now,

For ABC

Total return = Selling price - Purchasing Cost

= $42 - $40

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $40 ] × 100%

= 5%

For DEF

Total return = Selling price + Dividend received - Purchasing Cost

= $36 + $1 - $35

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $35 ] × 100%

= 5.7%

Hence,

option C) ABC 5% and DEF 5.7%.

7 0
3 years ago
Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%.
lapo4ka [179]

Answer:

D) $571.24

Explanation:

Royce' premiums for the  previous year were:

  • bodily injury $22.50
  • property damage $144.75
  • collision $275.75
  • comprehensive $100

The total premium of the policy was $543

Since the premiums will increase by 5.2%, the new total premium will be = $543 x 1.052 = $571.24

4 0
4 years ago
Read 2 more answers
Points lying ______ the production possibilities curve are attainable but reflect less total output than can be produced.
hichkok12 [17]

Points lying inside the production possibilities curve are attainable but reflect less total output than can be produced.

Production is the process of combining various tangible and intangible inputs to produce something for consumption. It is the act of creating an output, goods, or services that are of value and contribute to an individual's benefit.

Production is the process of making, harvesting, or creating something, or the quantity of something manufactured or harvested. An example of production is the manufacture of furniture. An example of production is harvesting corn for food. An example of production volume is the production volume of corn.

Learn more about production here:brainly.com/question/16755022

#SPJ4

7 0
1 year ago
Ruiz Co. provides the following unit sales forecast for the next three months: Sales units January February March 3,000 4,200 5,
Leokris [45]

Answer:

d. 0 3,120 units.

Explanation:

Consider the following formula to calculate the budgeted production

= Budgeted sales + Desired ending inventory - Beginning inventory available

= 3,000 + (4,200*10%) - 300  Setting the values of the previous formula.

= 3120 units

7 0
3 years ago
Full and clear communication regarding Kelsey's effectiveness as a customer service manager is enhanced by the performance appra
Sergio039 [100]

Answer:

C) 360-degree feedback.          

Explanation:

360-degree feedback: The term "360-degree feedback" is described as one of the processes or systems whereby different employees of a specific company or organization tends to receive or get anonymous or confidential "feedback" from various individuals who are working in the same company or organization in which the given person works. However, the different individuals who can provide feedback include peers, employee's manager, or even can be provided in terms of direct reports.

In the question above, the given statement represents the "360-degree feedback".

4 0
3 years ago
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