Answer:
Lower.
Explanation:
The capitalization rate is mainly used in real estate and is a measure of the rate of return on a property, based on the net operating income it is expected to generate.
Johnson in appraising two parcels of property, leased one to the government for use as a post office while the other parcel of property, is leased to a private owner for use as a hardware store. Having the knowledge that the parcels have recently started long-term leases. The capitalization rate of the post office property used by the government as compared to the capitalization rate of the hardware store property used by the private owner will be lower.
The capitalization rate of the post office property would be lower because, real-estate investors will not expect much returns on the investment as it's a less risky investment. The post office is less likely than a hardware store to run out of business or go bankrupt by virtue of being a governmental agency or public company.
Hence, the hardware store will need a higher capitalization rate in comparison with post office property.
Answer:
a. Determine the number of shares of stock that is outstanding
outstanding shares = 300,000 - 50,000 = 250,000 outstanding stocks
b. Determine the book value per share.
total stockholder equity = $700,000 + $1,550,000 = $2,250,000
book value per stock = $2,250,000 / 250,000 stocks = $9 per stock
c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEl's common stock.
Several things might explain why the book value of a company differs from its market value: the company's operating model, e.g. Amazon's book value is much lower than its FMV, but the expected future profits of Amazon are huge. It also depends on the assets or liabilities that the company might have, e.g. if the company owns a lot of land or other fixed assets reported at cost which might be much lower than FMV. Other factors include the company's positive attributes, its industry, etc.
Explanation:
Answer:
$ 3.87
Explanation:
It is given that :
Cost of the company's stock per share = $ 90
The required return on the stock is = 15 %
Therefore, the dividend yield =
We known that
= 4.05
The current dividend is,
= $ 3.87
Answer:
A prediction as to the volume of sales that a business excepts to make in the upcoming future.
Explanation:
Answer:
$1.15
Explanation:
Calculation for the net value of a long straddle position
Using this formula
Net value of a long Straddle=(Stock price at expiration-Strike price)-Put option selling-Call option selling
Let plug in the formula
Net value of a long Straddle = ($35-$29)-$2.90-$1.95
Net value of a long Straddle=$6-$2.90-$1.95
Net value of a long Straddle=$1.15
Therefore the net value of a long straddle position will be the amount of $1.15