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Real Estate Finance

You have contracted to purchase a $10,000,000 multi-family property with $2,000,000 cash down payment as equity and an $8,000,000 mortgage loan. Assume mortgage rates for this type of investment property are 8.50% fixed rate, fully amortized over 30 years, with monthly payments of interest and principal. (1) Construct an

Stocks price

Suppose a firm used a debt to leverage up its ROE, and in the process its EPS also was boosted. Would this lead to an increase in the price of the firm's stock?

Break Even Analysis for a Lighting Company

Ensco Lighting Company has fixed costs of $100,000, sells its units for $28, and has variable costs of $15.50 per unit. a. Compute the break-even point. b. Ms. Watts comes up with a new plan to cut fixed costs to $75,000. However, more labor will now be required, which will increase variable costs per unit to $17. The sales

Returns, accounts receivable

80. Crasler Company's net income last year was $100,000. The company paid preferred dividends of $20,000 and its average common stockholders' equity was $580,000. The company's return on common stockholders' equity for the year was closest to: A) 13.8%. C) 20.7%. B) 3.4%. D) 17.2%. 83. Grave Company had $150,000

Rate of return & net operating income

60. (Ignore income taxes in this problem.) In order to receive $12,000 at the end of three years and $10,000 at the end of five years, how much must be invested now if you can earn 14% rate of return? A) $12,978. C) $13,290. B) $8,100. D) $32,054. 61.Lusk Company produces and sells 15,000 units of Product A each mont

11664 Q ACC

But what is our liability? Ditka engineering company has signed a third party loan guarantee for liberty company . The loan is fro the national bank of illinois for $500,000. Liberty has recnetly filed for bankruptcy , and it is estimated by the companys auditors that creditors can expect to receive no more than 40% of their c

Corporate Finance-Multiple Choice

I need help with the attached questions. Work does not need to be shown. --- 10. You will receive a $100,000 inheritance in 20 years. You can invest that money today at 6% compounded annually. What is the present value of your inheritance? a. $27,491.25 b. $29,767.15 c. $31,180.47 d. $35,492.34 e. $100,000 11.

Finance questions: Procter Micro-Computers, Inc. & Modern Tombstones

Chapter 6 5. Procter Micro-Computers, Inc., requires $1,200,000 in financing over the next two years. The firm can borrow the funds for two years at 9.5 percent interest per year. Mr. Procter decides to do economic forecasting and determines that if he utilizes short-term financing instead, he will pay 6.55 percent interest i

Key financial management concepts

1. A company has two items in stock which require to be repaired before sale Cost Selling price Repair costs item1 5260 7600 880 item2 2360 2450 190 What is the total stock value of these items? A$6550 B$7520 C$7620 D$8980 2. The following information is given for a business at 31 December 2004.

Three finance problems: Gomez, Bruce and Brenda retirement, FV of payments

1. Gomez Electrics needs to arrange financing for its expansion program. Bank A offers to lend Gomez the required funds on a loan in which interest must be paid monthly, and the quoted rate is 8%. Bank B will charge 9%, with interest due at the end of the year. What is the difference in the effective annual rates charged by

Finance analysis II

What factors would cause a difference in the use of financial leverage for a utlility companyand an automobile company? Explain how the break-even point and operating leverage are affected by the choice of manufacturing facilitites (labor intensive versus capital intensive)? What does risk taking have to do with the use of

One statement is correct or all are false

One statement is correct or all are false When financial leverage is used, the graphical probability distribution of net income would tend to be more peaked than a destribution where no leverage is present, other things held constant From an operational standpoint the goal of maintaining financial flexibility translates i

Managerial Finance

Describe the schematic structure/relationships of a firm from its sources of capital to sales and fiscal and monetary policies. Do the firms actions feedback or interact with government economic policy?

Time Value of Money: Present Value, Compound interest

A small business expects an income stream of $5000 per year for a four-year period. a) Find the present value of the business if the annual interest rate compounded continuously is: (1) 3% (2) 10% b) in each case, find the value of the business at the end of the four-year period.

Expected returns

What is the expected return on a portfolio if an equal amount is invested in each stock? What would be expected return if 50 percent of your funds is invested in stock A and the remaining funds are split evenly between stocks B and C? Stock A 7% Stock B 12 Stock C 20 You are considering two stocks and have determined


Part 1: Obtain the most recent financial statements for Microsoft from the U.S. Securities and Exchange Commission website ( (Look for the annual report or Form 10-K.) Part 2: discuss and decide upon the best ratios for creating a forecast model for sales through operating income. Part 3: Develop

Basic Finance Problem Set

(See attached file for full problem description) --- 3. As you checked "Your Professor's answer" to the Self-Check Excercise problem 6 from this lesson (lesson 16) you will note that each year's net cash flows are calculated by adding depreciation back to net earnings. On the other hand, problem 1 in this assignment specifie

Market Efficiency

Please advise if my calculation are correct from the excel file. The word file are the questions that were asked. --- Event Study and Market Efficiency Use the market model estimates of residual returns on IBM to determine whether the stock market reacts in an efficient way to earnings announcements. The data that is pr

Auctions and Retirement Planning

Working on two questions regarding auctions and Retirememnt planning, they are attached here, just need some direction on the manner in which I need to proceed and some background on auctions and types. --- 1. An oil painting by the late Carl Barks comes up for auction. Though not a household name, his work is highly admir