*giving brainliest to the first correct answer*

You are considering purchasing an office building for $2,500,000. You expect the potential gross income (PGI) in the first year

Makovka662 [10]

Based on the information given the implied first-year overall capitalization rate is 9.50%.

Vacancy and collection losses = 9% of PGI

Vacancy and collection losses =$450,000×9% Vacancy and collection losses=$40,500

Effective gross income (EGI)= PGI - vacancy and collection losses

Effective gross income (EGI)= 450,000 - 40,500

Effective gross income (EGI)=$409,500

Operating expenses= 38% of EGI

Operating expenses= 0.38 × 409,500

Operating expenses=$155,610

Net operating Income(NOI)= EGI - Operating expenses

Net operating Income(NOI)=$409,500 - $155,610

Net operating Income(NOI)= $253,890

Capital expenditure= 4% of EGI

Capital expenditure= 409,500×4%

Capital expenditure= $16,380

Adjusted Net Operating Income=Net operating Income - Capital expenditure

Adjusted Net Operating Income=$253,890 - $16,380

Adjusted Net Operating Income=$237,510

Implied overall capitalization rate = Adjusted Net operating income ÷ Value of property

Implied overall capitalization rate=$237,510 ÷$2,500,000

Implied overall capitalization rate=9.50%

Inconclusion the implied first-year overall capitalization rate is 9.50%.

Learn more about overall capitalization rate here:brainly.com/question/25300299

4 0

3 years ago

A firm is producing 24 units of output. At the 24th unit of output, marginal revenue is $5, and marginal cost is $4; at the 25th

agasfer [191]

Answer:

False.

Explanation:

(1) Units produced = 24 units of output

At the 24th unit of output,

Marginal revenue = $5

Marginal cost = $4

MR ≠ MC

At the 25th unit of output,

Marginal revenue = $4.50

Marginal cost = $4.50

MR = MC

At the 26th unit of output,

Marginal revenue = $4

Marginal cost = $5

MR ≠ MC

A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.

It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.

This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.

6 0

3 years ago

Cullen and MacNeil’s is a well-known store that sells writing material. The company faces strong competition from the electronic

statuscvo [17]

Answer: <em>Option (D). Marketing Myopia</em>

Explanation:

From the given case/scenario, we can state that Cullen and MacNeil’s corporation tends to suffer from Marketing Myopia. Marketing Myopia tends to suggest that the businesses and organization will do much better at the end only if they tend to concentrate on meeting their customers and consumers needs instead of concentrating on just selling the products and services.

5 0

4 years ago

Which of the following statements is CORRECT?

rusak2 [61]

Answer:

D. The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.

Explanation:

So, we evaluate each option.

a. We discount the dividends by the required rate of return. So incorrect.

b. The dividend yield is annual dividend per share divided by stick price per share. the 5% is the growth in dividend and not the actual dividend itself. So, incorrect.

c. The constant growth is appropriate for companies whose dividend patterns are stable. Startups have multiple stage growths and this option becomes incorrect as constant growth is not applicable.

d. A zero growth stock is one where dividend remains the same. So when there is no growth in dividend, the constant growth model becomes inapplicable. So, the statement is correct.

So, here we have our correct statement and all others are incorrect.

6 0

3 years ago

Sloan is a believer of the carrot-and-stick approach to behavior modification. As a leader, he reprimands his workforce and make

REY [17]

Sloan has adopted the “punishment” form of reinforcement towards his employees.

<u>Explanation:</u>

Punishment at the workplace means when new adopted changes or behavior lead to negative consequences at the workplace.

Sloan’s method of awarding only when the employees perform well is a case of the same. His action of deducting the employee's salary by 20 percent too would not positively encourage them to perform well, but lead to dissatisfaction and contempt towards him.

5 0

4 years ago