Which appraisal method would be most useful in appraising an unusual building which has a very limited and specific use?

A Canadian company is examining the relative wages, land-acquisition costs, and access to R&D facilities before deciding to

leonid [27]

Answer:

The correct answer is ''Market Analysis''.

Explanation:

A market analysis is the name given, in the field of economics, to the term that refers to the strategy used by many managers to know whether is good or bad to enter a new market. It is part of an industry analysis and it shows the attractiveness and dynamics within the market that could led to a very good decision at the time of decising whether to operate or not in a foreign market. Moreover, it is also known as a documented investigation whose main focus is on evaluating the basics of a new market and inform to the managers of the company that information. Therefore that a ''market analysis'' is particulary important to the company's choice of a mode of entry.

3 0

3 years ago

Calculate the value of a bond that matures in 12 years and has a $ 1 comma 000 par value. The annual coupon interest rate is 13

dem82 [27]

Answer:

Price of bond=$ 1,129.847

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV

Step 1

PV of interest payments

annul interest payment

= 13% × 1000 = 130

PV = A × ( (1- (1+r)^(-n))/r

Annual yield - r= 11% per annum

Total period to maturity- n = 12 years

PV of interest

=130× (1- 1.11^(-12) )/0.11

= 844.00

Step 2

PV of Redemption Value

= 1,000 × (1.11)^(-12)

= 285.84

Step 3

Total PV = 844.00 + 285.84 = 1129.847123

Price of bond=$ 1,129.8471

3 0

2 years ago

How much money will Yoko have left over for her savings each month? $85 $95 $110 $120

sergij07 [2.7K]

Answer:

$85

Explanation:

The chart is left out in the question.

4 0

3 years ago

Read 2 more answers

Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 10 percent, has a YTM of 8 percent,

Degger [83]

Answer:

Miller Bond:

Today: 1,166.63

1-year 1,159.83

4-years 1,135.90

9-years 1,081.11

13-years 1,018.86

14-years 1,000 (maturity)

Modigliani Bond

Today: 851.01

1-year 856.25

4-years 875.38

9-years 922.78

13-years 981.41

14-years 1,000 (maturity)

Explanation:

The present value will be the discount coupon payment and maturirty at the YTM rate:

Miller Bond:

The coupon payment are calcualte as ordinary annuity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 50.00 (1,000 x 10% / 2)

time 28 (14 years x 2 payment per year)

rate 0.04 (8% YTM / 2 payment per year)

$50 \times \frac{1-(1+0.04)^{-28} }{0.04} = PV\\$

PV $833.1532

While Maturity, using the lump sum formula

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $1,000.00

time 28 semesters

rate 0.04

$\frac{1000}{(1 + 0.04)^{28} } = PV$

PV 333.48

PV coupon $833.1532 +PV maturity $333.4775 = Total $1,166.6306

For the subsequent time we must adjust t

in one year, there will be 26 payment until maturity

$50 \times \frac{1-(1+0.04)^{-26} }{0.04} = PV\\$

PVcoupon $799.1385

$\frac{1000}{(1 + 0.04)^{26} } = PV$

PVmaturity 360.69

Total $1,159.8277

As the bond get closer to maturity it will get closer to face value until maturity when it will equalize it.

We recalculate the same formula with values of:

in 4-year : then 10 years to maturity t = 20

in 9-years: then 5 years to maturity t= 10

in 13-years: 1 year to maturity t = 2

at 14 years: is maturity date so equals the face value of 1,000

Remember: there are two payment per year.

Same process will be done with Modigliani bond:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 1,000 x 8% / 2 payment per year : 40.00

time: 14 years x 2 payment per year = 28 payment

rate 10% annual rate /2 = 0.05

$40 \times \frac{1-(1+0.05)^{-28} }{0.05} = PV\\$

PV coupon $595.9251

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $ 1,000.00

time 28 semester

rate 0.05

$\frac{1000}{(1 + 0.05)^{28} } = PV$

PV maturity 255.09

PV coupon $595.9251 + PV maturity $255.0936 = Total $851.0187

and then we calcualte for the same values of t we are asked for the Miller bond.

8 0

3 years ago

Red Sun Rising just paid a dividend of $2.58 per share. The company said that it will increase the dividend by 20 percent and 15

vladimir1956 [14]

Assuming the required return is 12 percent, the stock price today is $40.61.

Given:

Dividend=$2.58 per share

Increase in Dividend=20% and 15%

Number of year=2 years

Increase in Annual Dividend=3.6%

Required return=12%

P2=Stock price today

Now let calculate the stock price today

P2 = [$2.58(1+0.20)]/(1+.12) + [$2.58(1+.20)(1+.15)]/(1+.12)^2 + {[$2.58(1+.20)(1+.15)(1+.036)]/(0.12 − 0.036)}/(1+.12)^2

P2 = [$2.58(1.20)]/1.12 + [$2.58(1.20)(1.15)]/1.12^2 + {[$2.58(1.20)(1.15)(1.036)]/(0.12 − 0.036)}/1.12^2

P2=($3.096/1.12)+ ($3.5604/1.2544)+ [($3.68857/0.084)/1.2544]

P2=$2.7643+$2.838329+($43.91155/1.2544)

P2=$2.7643+$2.838329+$35.0060

P2=$40.61

Inconclusion assuming the required return is 12 percent, the stock price today is $40.61.

Learn more here:

brainly.com/question/24314972

7 0

2 years ago