Question 1: Part A 1 of 2 The Ghirardelli Chocolate Co. rents several small retail units from Stratford Developments Corp as part of its new concept Sugar-Rush Cakeshop, which it hopes will help revive the company's fortunes in the face of declining sales. Juan Rosas shopping centre has recently had a rent review, and the rent has been agreed at 315,000 per annum. The Ghirardelli Chocolate Co. has proposed that the rent should henceforth be payable monthly in advance rather than quarterly in advance as at present for the remainder of the lease, which is 8 years. The all risks yield for retail properties in this locality is 6.25%. Value the 8 years of the term remaining for Juan Rosas shopping centre on behalf of Stratford Developments Corp on the assumption that the rent is payable: 1. Annually in arrears 2. Quarterly in advance
Question 1: Part A 1 of 2 The Ghirardelli Chocolate Co. rents several small retail units from Stratford Developments Corp as part of its new concept Sugar-Rush Cakeshop, which it hopes will help revive the company's fortunes in the face of declining sales. Juan Rosas shopping centre has recently had a rent review, and the rent has been agreed at 315,000 per annum. The Ghirardelli Chocolate Co. has proposed that the rent should henceforth be payable monthly in advance rather than quarterly in advance as at present for the remainder of the lease, which is 8 years. The all risks yield for retail properties in this locality is 6.25%. Value the 8 years of the term remaining for Juan Rosas shopping centre on behalf of Stratford Developments Corp on the assumption that the rent is payable: 1. Annually in arrears 2. Quarterly in advance
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Question 1: Part A 1 of 2
The Ghirardelli Chocolate Co. rents several small retail units from Stratford Developments Corp as part of its new concept Sugar-Rush
Çakeshop, which it hopes will help revive the company's fortunes in the face of declining sales. Juan Rosas shopping centre has recently
had a rent review, and the rent has been agreed at 315,000 per annum. The Ghirardelli Chocolate Co. has proposed that the rent should
henceforth be payable monthly in advance rather than quarterly in advance as at present for the remainder of the lease, which is 8 years.
The all risks yield for retail properties in this locality is 6.25%. Value the 8 years of the term remaining for Juan Rosas shopping centre on
behalf of Stratford Developments Corp on the assumption that the rent is payable:
1. Annually in arrears
2. Quarterly in advance
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