Information text Use the following information for questions 29 – 34, each question is worth_________. Before attempting to answer the questions, set up an analysis based on the given information. Chilly Cloud Corporation (C3) operates several information technology hubs, including cloud storage, disaster recovery, and racks for lease to businesses needing additional space for their own IT needs. C3 is growing rapidly and anticipates adding 20,000 SF per year for the next five years. C3’s CFO, Dave, is analyzing several options for acquiring the expected space over the next five years. There are many options; first, they could build a new building to add the expected space needed, second, they could build a new corporate office which would include the existing corporate needs as well as the expected space anticipated to be needed. Both of these options could be expanded to buying and renovating existing buildings. In addition, C3 has the option to lease property in increments that enable them to move into the needed space as the growth occurs. The rates will vary according to when and for how long they decide to lease. Also, the location could vary if it is financially advantageous and not disruptive to the operation. They also have an option to build to suit on one of the sites that are also available for construction of an owned building. C3 currently occupies 80,000 square feet in a building they own. There is no space available to expand, so in every option, C3 must dispose of the existing property or operate from multiple locations. The expected market value of the existing property is $7.2 million. The basis in the property is $2.7 million and C3 is in a 21% tax bracket. C3 wants Class A property as part of the brand they are projecting. Construction rates are between $85-115 per square foot, including property, to build before tenant finishes above standard. Lease rates are between $21-27 per square foot to lease, again at standard finishes. C3 estimates that they will spend $1.25-1.5 million on upgrades or tenant finishes in any scenario. Assuming a five-year horizon, answer the following questions with the information provided. Do not forget the tax effect on the cashflow of periodic rent and mortgage payments when calculating present values.
Question 29 Given the facts above and that the expected selling expenses would be 8% of the selling price; what is the expected net cash from sale? Select one: a. $6.624.000 b. $3,924,000 c. $5,799,960 d. $6,375,960 e. None of the above
Question 30 Assuming a weighted average cost of capital of 23%, what is the present value of the after-tax cash flow required, exclusive of the tenant improvements, on a five-year lease for 180,000 square feet (projected total required over five-year period) at a rate of $22.50 per square foot annually? Assume payments are made monthly. Select one: a. $8,969,713. b. $9,457,983 c. $15,997,500 d. $7,192,825 e. None of the above
Question 31 Answer saved Points out of 5.0 Flag question Question text Assume C3 has the opportunity to execute a lease with options to add 20,000 SF over each of the next four years; however, to do that they would have to agree to bumps in rent of $.75 per SF annual rent on the entire leased space. Assuming no additional moving costs or other logistical issues, how much would they save in gross rent? Select one: a. $3,300,000 b. $2,718,655 c. $2,514,560 d. $6,020,661 e. None of the above
Question 32 Answer saved Points out of 5.0 Flag question Question text Assume the WACC is 23% and payments are made monthly. What is the present value of the after-tax cash flow required for the modified lease option with incremental increase in space and rent describe in the question above? Select one: a. $7,192,825 b. $7,310,243 c. $8,839,506 d. $6.020.661 e. None of the above
Question 33 Answer saved Points out of 5.0 Flag question Question text If C3 elects to build, using the median construction cost estimate ($100/SF), compute the net present value assuming the building will be occupied simultaneously to the sale of the existing building in one year. Include the cost of a construction loan at 6.5% annual interest rate, with construction draws commencing in 3 months and being incurred evenly over the remaining 9 months. Assume the construction loan agreement requires C3 to put the first 25% estimated construction costs into the project before the draws can be made and interest to be rolled into the loan monthly. Assume C3 expects to convert the 75% construction loan into a five-year term loan with monthly payment of principal and interest amortized over 20 years at 6.5%. Assume a sale at the end of five years at a compound 3% increase in value. Depreciation on the building is calculated at 39 years and selling costs are estimated to be 8%. C3 intends to withdraw the equity paid from operating cashflow from the proceeds of the sale and net the balance against the required loan. What is the net present value of the of cash flows for the acquisition/construction of the building? Select one: a. $5,682,854 b. $7,192,825 c. $6,020,661 d. $8,544,415 e. None of the above
Question 34 Answer saved Points out of 5.0 Flag question Question text Using the information above, including the previous question, what is the present value of the sale of the new building, discounted at the WACC (23%), assuming it occurs at the and of the fifth year. Select one: a. $5,799,960 b. $6,020,661 c. $2,944,941 d. $2,827,835 e. None of the above
In: Finance
(1) On August 1, 2018, We R Clean Company signed a 9-month contract with a hotel chain to provide pool and spa cleaning services for 3 hotel sites. The contract price of $14,850 was collected on the date the contract was signed. The services will be provided evenly over the next 9 months, starting on August 1. The adjusting entry on December 31, 2018 will
Credit Service Revenue for $6,600
Debit Earned Revenue for $6,600
Credit Service Revenue for 8,910
Debit Unearned Revenue for $8,250
(2) Collegiate Fitness Centers have 15,000 members whose monthly dues are $30 each. The company does not send individual bills to customers, who have until the 10th day of the month following the month of service to pay their monthly dues. On December 31, 2017, the company’s records show that 7,000 customers have already paid their December dues, and the payments were properly recorded. The adjusting entry to be recorded on December 31 will include
| A credit to Membership Revenue of $450,000 |
| A credit to Membership Revenue of $210,000 |
| A debit to Accounts Receivable of $210,000 |
|
A debit to Accounts Receivable of $240,000 (3) The Supplies account has a balance of $1,000 on January 1. During January, the company purchased $25,000 of Supplies on account. A count of Supplies at the end of January indicates a balance of $3,000. Which one of the following is a correct amount to be reported on the company's financial statements for the month ending January 31?
|
In: Accounting
1. Kolyesna Hotels Group acquired some financial data for the years 2010 and 2011
| Financial Data | 2010 | 2011 |
| Net Income | $118,000 | $149,000 |
| Total Revenue | $1,910,000 | $2,070,000 |
| Total Assets | $3,789,000 | $4,612,000 |
| Total Owner's Equity | $910,000 | $1,010,000 |
| Preferred Dividends Value | $10,000 | $11,500 |
| Common Shares Outstanding | 42,000 | 57,000 |
| Market Price per Share | $44.10 | $50.82 |
Using the financial data table, calculate the required ratios for
the Kolyesna Hotel Group in 2011 (assume there are 365 days in a
year).
a) Profit margin ratio
b) Return on assets (ROA)
c) Return on equity (ROE)
d) Earnings per share (EPS) with common stock
e) Earnings per share (EPS) with preferred stock
f) Price/Earnings ratio (P/E) for both common and preferred
stock
2. The return on asset (ROA) and profit margin ratio for Tiggie’s Quick Food Corp. were 11.25% and 24.80% in 2013. If the total asset value of this firm was $25 million at the end of 2013, what is the total revenue generated in 2013?
3. Jamming Luxury Lodging Properties has obtained the financial data as follows:
| Balance Sheet Item | 2009 ($) | 2010 ($) |
| Total Assets | 4,140,000 | 5,000,000 |
| Total Owner's Equity | 2,550,000 | 2,920,000 |
| Net Income | 1,900,000 | 2,050,000 |
Based on the financial information given, calculate return on owner’s equity (ROE) for Jamming Luxury Lodging Properties in 2010.
4. The financial data for Millen & Adams Boutique Hotel Inc. in both 2011 and 2012 are as follows:
| Financial Data | 2011 | 2012 |
| Net Income | $412,500 | $556,330 |
| Preferred Dividends Value | $34,600 | $32,100 |
| Common Shares Outstanding | 120,000 | 146,900 |
Based on the financial data table, calculate the earnings per share (EPS) with preferred stock for Millen & Adams Boutique Hotel Inc. in 2012.
In: Accounting
In: Computer Science
(1) a. sentence generation
The sentence you need to generate is shown below:
Sentence: John fed a bear in the park.
In this question, you should start from the target structure, a sentence (= S). Then you expand S by applying the rule S --> S PP. There is another rule that can expand S, namely S --> NP VP. However, if you apply S --> NP VP before S --> S PP, you will not be able to include PP. Therefore, S --> S PP is the correct rule to apply first, as has been given in the table below (together with two other steps). Remember to insert the lexical items when you get to a leaf node like D or N where no rule can be further applied. If your answers are correct, then all the 14 blanks should be filled.
The rules and lexicon that you need to generate the sentence are given as below:
Rules:
S --> NP VP
NP --> D NP
VP --> V PP
VP --> V NP
S --> S PP
PP --> P NP
AdjP --> Adv Adj
NP --> N
CP --> C S
Lexicon:
V --> saw, kicked, fed
P --> in, at
D --> a, the
N --> John, bear, park
You will need only a subset of the rules for this question.
Step
Sentence generating process
0 S
1 S --> S PP
2 S --> NP VP
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Done!
(1) b. Expand the rules and lexicon
What do you need to add to the previous rules and lexicon if you want to generate the following sentence:
The boy saw a brown bear in the park.
New rule(s) that needs to be added:
____________________
New lexical item(s) that needs to be added:
_____________________
______________________
In: Computer Science
Cash management is routine, day-to-day administration of cash and near-cash resources by an individual or family. With this in mind, develop a cash management strategy that incorporates a variety of savings plans
In: Finance
Write the first three non-zero terms of the Taylor series of sin x near x0 = 3π/2. Sketch a plot of the curves for sin x and your approximation.
In: Advanced Math
Which international trade theory would best apply and why does BMW (Germany Company) have a production plant near Greenville SC that employs nearly 9000.
In: Operations Management
Make a list of the advantages and disadvantages can you think of for living near a volcano? Do you think the advantages outweigh the disadvantages?
Write a 250 word essay to answer.
In: Other
What is the percentage ionization of 0.10 M HC2H3O2?
In: Chemistry