A property that can be purchased for $1.7 million has an expected first year NOI 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 principle 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.
Fore each loan, determine:
A. The expected before-tax cash flow (NOI minus annual debt service) as a percentage of the equity investment.
In: Finance
What is the yield to maturity of a five-year, $10,000 bond with a 4.8% coupon rate and semiannual coupons if this bond is currently trading for a price of $9,546?
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7.03% |
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|
5.86% |
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|
8.21% |
||
|
2.93% |
In: Finance
if you invest $100 in the U.K market for one year with a forward cover when the interest rate and exchange rates are as given below, the annualized rate of return from the investment is:
Spot rate (bid-ask) = $1.3040-50/£; forward rate(bid-ask) = $1.3000-05/£, U.K. interest rate = 3%
In: Finance
In: Finance
What is Amazon's (referring to the company) fixed change coverage for the year 2018 & 2019? With no given data.
In: Finance
What is Amazon's days sales outstanding for the year 2018 & 2019? With no given data.
In: Finance
MBX is a new firm that will generate free cash flows of $100 billion in year 1 and growing at a rate of 5% a year thereafter. If the MBX’ cost of capital is 10% and it has neither debt nor cash then by issuing 100 million shares the price of MBX stock will be:
| a. |
$200 per share |
|
| b. |
$10 per share |
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| c. |
$20 per share |
|
| d. |
$100 per share |
In: Finance
Crocker and Company (CC) is a C corporation. For the year, CC reported taxable income of $566,000. At the end of the year, CC distributed all its after-tax earnings to Jimmy, the company's sole shareholder. Jimmy's marginal ordinary tax rate is 37 percent and his marginal tax rate on dividends is 23.8 percent, including the net investment income tax. What is the overall tax rate on Crocker and Company's pre-tax income?
A) 18.8%
B) 23.8%
C) 21
D) 39.8
E) 66.7
In: Finance
Consider a growing perpetuity that will pay $200 in one year. Each year after that, you will receive a payment that is 5% larger than the last payment. This pattern of payments will continue forever. If the interest rate is 10%, then the value of this perpetuity is closest to:
$1560 | ||
$3360 | ||
$4000 | ||
$2000 |
In: Finance
Borrow $100,000 with a 20 year fixed mortgage at 6%. Calculate the monthly payment if the loan is
Partially Amortizing- Lender and borrower agree to have a balance of $80,000 at maturity?
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256.22 |
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543,78 |
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|
356.71 |
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|
6543.69 |
In: Finance