Question
In: Finance
A small commercial property has a net income of $60,300 and an annual gross income of...
A small commercial property has a net income of $60,300 and an annual gross income of $95,500. The property recently sold for $620,750. What is the gross income multiplier for this property?
A. 1.58
B. 6.50
C. 8.75
D. 10.26
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You are considering purchasing a small commercial property for $1,000,000. A bank has offered you two...
You are considering purchasing a small commercial property for
$1,000,000. A bank has offered you two different loan options, the
first would require a down payment of 30% and would have an
interest rate of 5.25%. The second option would require a
downpayment of only 20%, but the interest rate would rise to 6%.
Both loans would have 25 year terms. After determining your monthly
payment for each, calculate how much you are effectively paying
(solving for RATE) for the...
How to explain and classify income statement revenue, gross profit, and net income?
How to explain and classify income statement revenue, gross profit, and net income?
A recent annual report for Naomi reported that the (gross) balance of property, plant, and equipment...
A recent annual report for Naomi reported that the (gross)
balance of property, plant, and equipment
at the end of the current year was $16,774 million. At the end
of the previous year it was $15,667
million. During the current year, the company bought $2,118
million worth of new equipment. The
balance of accumulated depreciation at the end of the current
year was $8,146 million and at the end
of the previous year was $7,654 million. Depreciation expense
for the...
Company A has an annual income of $100 million and net profit is %20 , and...
Company A has an annual income of $100 million and net profit is
%20 , and the owner wants to establish a project at a cost of $300
million. Is the project should financed from the income of Company
A or financed from bank, and why?
Assume that Darrell's gross annual income is $60,000 and Lena's is $67,000.
Darrell and Lena Jennings are a two-income couple in their early
30s. They have two children, ages 6 and 3. Darrell's monthly
take-home pay is $3,600, and Lena's is $4,200. The Jennings feel
that, because they're a two-income family, they both should have
adequate life insurance coverage. Accordingly, they are now trying
to decide how much life insurance each one of themneeds.To begin with, they'd like to set up an education fund for their
children in the amount of $120,000...
Year 2012 RM 'millions 2011 RM'millions 2010 RM'millions Annual Amounts: Net Income 90 60 25 Gross...
Year
2012
RM 'millions
2011
RM'millions
2010
RM'millions
Annual Amounts:
Net Income
90
60
25
Gross margin on sales
520
380
200
Cost of goods sold
980
620
300
Operating expenses
380
295
165
Income tax expense
50
25
10
Dividends declared and paid
35
15
5
End-of-Year Amounts:
Long-term assets
240
220
180
Long-term debt
85
65
40
Current liabilities
65
55
35
Cash
20
5
10
Accounts receivable
85
70
40
Merchandise inventory
120
85
60
Paid-in capital...
Sam is a property investor. He purchased a small commercial building in Sydney for $2,000,000. Sam...
Sam is a property investor. He purchased a small commercial
building in Sydney for $2,000,000. Sam
had to take out a loan from the ANZ Bank to purchase this property
and Sam is charged interest on
that loan. In order to rent the property, he met William, who is an
experienced real estate agent. Sam
and William agreed that an upfront lump-sum payment of $8,100 as a
management fee is to be paid
to William. With reference to the relevant...
Sam is a property investor. He purchased a small commercial building in Sydney for $2,000,000. Sam...
Sam is a property investor. He purchased a small
commercial building in Sydney for $2,000,000. Sam had to take out a
loan from the ANZ Bank to purchase this property and Sam is charged
interest on that loan. In order to rent the property, he met
William, who is an experienced real estate agent. Sam and William
agreed that an upfront lump-sum payment of $8,100 as a management
fee is to be paid to William. With reference to the relevant...
A property that can be purchased for $1.7 million has an expected first-year net operating income...
A property that can be purchased for $1.7 million has an
expected first-year net operating income of $190,000. An investor
is considering two loan alternatives:
LOAN A: a 70% loan-to-value ratio, with interest at 7.5% per
annum; the loan will require level monthly payments to amortize the
principal over 20 years.
LOAN B: an 80% loan-to-value ratio, with interest at 8% per
annum; this loan will require level monthly payments to amortize
the principal over 25 years.
For each loan,...
The monthly income from a piece of commercial property is $1,500 (paid as a lump sum...
The monthly income from a piece of commercial property is
$1,500 (paid as a lump sum at the end of the year). Annual
expenses are $2000 for upkeep of the property and $800 for
property taxes. The property is surrounded by a security fence that
cost $4,000 to install four years ago. Assume 52 weeks in a year
andend-of-year cash flows.
a. If i=14%per year (the MARR) is an acceptable interest
rate, how much could you afford to pay now...
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