Let us assume that an investor can obtainan 80% LTV loan for a property valued at500,000 at a 10% interest rate to beamortized over 25 years with monthlypayments. If the property generates$70,000 net operating income per year,answer the following.What is the equity dividend rate?26.38%15.48%25.93%28.56%

Answered: Image /qna-images/answer/b5d63038-bd21-4588-8b16-c1a7a3049303.jpg

Answered: Let us assume that an investor can…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mike Derr Company expects to earn 8% per year on an investment that will pay $616,000 seven years from now. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Compute the present value of this investment. Future Value Table Factor Present Value
How much would you be prepared to pay for a share in 2 years’ time that pays a $1.5 dividend each year constantly ? Assume the required rate of return is expected to remain constant at 9.1% per year.
You have two opportunities to invest $5,000 for 10 years. The first provides a yield of 8% annually, compounded quarterly. The second provides a yield of 8.5% annually, compounded annually. Which of these investments provides the highest returns? By how much?
If $10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 4% per year? A. $1,068 B. $890 C. $445 D. $1424
need complete and correct answer with proper explanation , computation formula and steps answer in text form
An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next 4 years. Following is a table for the present value of $1 at compound interest: Year 1 2 3 4 12% 0.943 0.909 0.893 0.870 0.890 0.826 0.797 0.756 0.840 0.751 0.712 0.658 0.792 0.683 0.636 0.572 0.747 0.621 0.567 0.497 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 15% 1 0.943 0.909 0.893 0.870 2 1.833 1.736 1.690 1.626 3 2.673 2.487 2.402 2.283 4 3.465 3.170 3.037 2.855 4.212 3.791 3.605 3.353 5 5 6% 10% % 15% What is the investment's internal rate of return?
Mike Derr Company expects to earn 8% per year on an investment that will pay $616,000 ten years from now. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Compute the present value of this investment. Future Value 616,000 X Table Factor Present Value
Assuming an interest rate of 5%, if you invest a lump sum of $6000 now, the balance of your investment in 7 years will be closest to:Future Value of $1 Periods 5% 6% 8% 10% 4 1.216 1.262 1.360 1.464 5 1.276 1.338 1.469 1.611 6 1.340 1.419 1.587 1.772 7 1.407 1.504 1.714 1.949 8 1.477 1.594 1.851 2.144 9 1.551 1.689 1.999 2.358 10 1.629 1.791 2.159 2.594 Future Value of Annuity of $1 Periods 5% 6% 8% 10% 4 4.310 4.375 4.506 4.641 5 5.526 5.637 5.867 6.105 6 6.802 6.975 7.336 7.716 7 8.142 8.394 8.923 9.487 8 9.549 9.897 10.637 11.436 9 11.027 11.491 12.488 13.579 10 12.578 13.181 14.487 15.937 $8442. $34,716. $9774. $42,000.
You invest $4200 for a period of 7 years. At the end of 7 years your investment has grown to $7200. What is the annual rate of return on this investment? O a. 6.18% b. 10.20% O c. 8.00% O d. 71.43%
Global Investment Corporation is exploring multiple investment opportunities to invest about $20 M. Four investment opportunities are being carefully evaluated. If the company is interested in maximizing the return on investment, which one offers the best opportunity? 12% per year compounded quarterly. 11.85% per year compounded daily. 11.95% per year compounded monthly. 11.82% per year compounded continuously. i. 11. iii. 1V. Show your calculation for each option and based upon your calculation select the best option from i to iv
determine the market value of 6 million of long-term debt, the parameters are that for 14 years, payments of 300,000 (5% of 6 million)will be made, concluding with a 15th year of payment of 6,300,000 (interest and principle) and that 12% is representative interest rate. what is the present value of the cash flows?
Assume you just received a monetary gift of $1,000, and decided to invest it in a certificate of Deposit (CD) for 5 years, at a steady annual yield of 3.5 percent. How much would be the total value of your investment at the maturity date?

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