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Soloha48 [4]
3 years ago
11

Monica Geller wants to purchase an industrial building. She has identified one with NOI of $1,650,000. She thinks she can purcha

se it at a 5% cap rate. What price would she pay
Business
1 answer:
erma4kov [3.2K]3 years ago
4 0

Answer:

$33,000,000

Explanation:

In real estate, NOI refers to net operating income and it represents how much money a landlord can expect to earn from a real estate investment. It generally applies to rental income.

Since Monica's cap rate is 5%, then she should be willing to pay up to $1,650,000 / 5% = $33,000,000.

The higher the cap rate, the more an investor earns on a real estate investment, but it also represents a higher risk. It is similar to the rate of return of other types of investments.

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Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholdersâ equity. Se
Scorpion4ik [409]

Answer:

Transaction                       Assets            Liabilities        Stockholders' Equity

Issue common stock           Increase               NE                      Increase

Issue preferred stock         Increase               NE                      Increase  Purchase treasury stock     Decrease             NE                       Decrease

Sale of treasury stock         Increase              NE                        Increase  Declare cash dividend            NE                   Increase                   NE

Pay cash dividend               Decrease            Decrease NE

100% stock dividend              NE                        NE                      NE

2-for-1 stock split                    NE                       NE                         NE

When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.

When cash dividends are declared, they become a liability that is owed to equity holders.

When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.

100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.

8 0
3 years ago
What GPA do you need to get into the Junior Honor Society?
serious [3.7K]

Answer:

you need a 4.0 gpa to be in the junior honor society

Explanation:

cause

3 0
3 years ago
Read 2 more answers
If sales increase from $460,000 to $520,260, and if the degree of operating leverage is 6.60, net operating income should increa
Ganezh [65]

Answer: $397,716

Explanation:

Degree of Operating Leverage = Change in Net Operating Income/ Change in Sales

6.60 = Change in Net Operating Income / (520,260 - 460,000)

(520,260 - 460,000) * 6.60 = Change in Net Operating Income

Change in Net Operating Income = 62,260 * 6.60

Change in Net Operating Income = $397,716

6 0
3 years ago
Dole originally aimed the fruit bowls toward moms with small children but quickly adapted once it realized on-the-go professiona
Hitman42 [59]
Which is to <span>Identify the target audience.
Target audience refers to the group of people that certain advertisers or publications intended to reach.
By knowing the target audience, they could create marketing campaigns that would be appealing for that specific group alone maximize their result.</span>
7 0
3 years ago
Read 2 more answers
Global businesses with a narrow product line or a highly integrated product mix, such as aircraft manufacturers or oil and gas f
blagie [28]

Answer:

functional organizational structure

Explanation:

A functional organizational structure organizes employees by grouping them according to their skills, specialties and knowledge (e.g. marketing, finance, engineering departments). They are usually vertical organizations, where each department is semi-independent from the rest, and the heads of the departments report directly to upper management (CEO, CFO, COO).

8 0
4 years ago
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