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2 years ago

Given the following information, calculate the debt coverage ratio of this commercial loan:

Business

1 answer:

pishuonlain [190]2 years ago

3 0

Answer:

1.50

Explanation:

The debt coverage ratio shows the extent to which the property is generating income in a bid to pay its debt service charge, it is computed using the below DSCR formula

DSCR= net operating income (NOI)/Debt service

net operating income (NOI)=$150,000

Debt service=interest expense or finance charge in the year=$100,000

DSCR=$150,000/$100,000

DSCR=1.50

The property in question is generating income that is 1.5 times its debt servce yearly

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What are two recent CSR/CSI initiatives of Woolworths

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Explanation: The fabric of society

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2 years ago

Which of the following statements is right about facility location analysis?

RideAnS [48]

Answer:

The correct answer is letter "A": Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.

Explanation:

Facility location is part of the research and computational geometry in charge of determining the localization of a company's branches to be closest as possible to the firm's target customers, workers, and suppliers by minimizing the costs. Other factors such as free trading zones or environmental policies are also taken into consideration.

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3 years ago

On April 30, Gomez Services had an Accounts Receivable balance of $31,200. During the month of May, total credits to Accounts Re

Kazeer [188]

Answer:

What was the amount of credit sales during May? $ 60200

Explanation:

April Deb Cre May

Account receivable 31200 66400 25000

31200 60200 66400 25000

Credit 66400 +

may-31 25000 +

apri-30 -31200 -

= 60200

5 0

3 years ago

Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,

Lostsunrise [7]

Answer:

Interest revenue = $7800*8%/360*60

Interest revenue = $104

Date Journal Entry Debit Credit

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Notes Receivable $7,800

Interest Revenue $104

5 0

2 years ago

32,500 shares of common stock outstanding at a price per share of $80 and a rate of return of 12.95 percent. The firm has 7,350

pashok25 [27]

Answer:

WACC = 11.1%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.

Market of securities

Common stock = $80 × 32,500= 2,600,000.

Preferred stock = $95.50 × 7,350= 701,925.00

Bond = 407,000/100 × 111.5= 453,805.00

Cost of each capital type

Common stock= 12.95

Preferred stock = (7.90%× 100)/95.50= 8.3%

Bond= 8.11%× (1-0.4)=4.87%

WACC

Type Market Value Cost Market value cost

Common stock 2,600,000. 12.95% 336,700.00

Preferred 701,925.00 8.3% 58,065.00

Bond 453,805.00 4.87% 22,100.30

Total 3,755,730.00 416,865.30

WACC = (416,865.30 / 3,755,730.00) × 100

= 11.1%

WACC = 11.1%

4 0

3 years ago