Answer:
WJK's Unlevered Beta = 1.7
Expected rate of return = 13%
Financial leverage = 0.25
Explanation:
given data
debt = $5000
equity = $20,000
interest = 5%
equity beta = 2
market risk premium = 5.5%
risk free rate of return = 2%
marginal tax rate = 30%
solution
we find here Unlevered Beta that is
Unlevered Beta =
...........................1
as that we can say
WJK's Unlevered Beta =
put here value we get
WJK's Unlevered Beta =
WJK's Unlevered Beta = 
WJK's Unlevered Beta = 1.7
and
Expected rate of return on equity of GH using CAPM = Risk free rate + Beta of GH × (Market risk premium)
Expected rate of return = 2% + 2 × (5.5%)
Expected rate of return = 13%
and
Financial leverage will be here
Financial leverage = 
Financial leverage = 
Financial leverage = 0.25
Answer:
$2,460
Explanation:
Data provided in the question:
Rental income = $19,000
The vacancy and collection losses for the year = $2,680
Operating expenses = $6,160
Tyler’s mortgage expenses for the property = $7,700
Now,
The before tax cash flow for Tyler’s property will be
= Rental income - losses for the year - Total expenses
= $19,000 - $2,680 - ( $6,160 + $7,700 )
= $16,320 - $13,860
= $2,460
TRUE
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Answer:
A.) $20,000
Explanation:
Kindly check attached picture for detailed explanation