6 years ago, your company purchased a lot of land for $769203 . You received an offer to purchase the land for $1131668. If you sell it at this price, what is the implied return?
Q: An investment offers $9,200 per year for 17 years, with the first payment occurring one year from…
A: STEP 1 Given a specific rate of return or discount rate, an annuity's present value (PV) is the…
Q: 4.StockA sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state…
A:
Q: Explain the role of regulators in monitoring and enforcing ALM policies and limits. Describe how…
A: The Asset liability management reflects the function in the financial industries which will be…
Q: a. Explain forecasting exchange rates. b. Explain four forecasting techniques.
A: STEP 1 When forecasting exchange rates, analytical principles are used to calculate future rates.…
Q: Use the information below to answer the questions that follow. U.S. $ EQUIVALENT CURRENCY PER U.S. $…
A: A cross-currency exchange rate is an exchange rate where two different currencies are valued against…
Q: Broke Benjamin Company has a bond outstanding that makes semiannual payments with a coupon rate of…
A: Yield to maturity refers to the concept that states the internal rate of return which is earned by…
Q: Mike Branson invested his summer earnings of $6000 in a savings account for college. The account…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: Halliford Corporation expects to have earnings this coming year of $2.99 per share. Halliford plans…
A: As per the dividend growth or the dividend discount model, the share's current price denotes the…
Q: (Related to Checkpoint 9.4) (Bond valuation) A bond that matures in 10 years has a $1,000 par value.…
A: Where The price of the bond is "P". The coupon payment is "C". The yield to maturity is "r". The…
Q: On March 31, 20Y5, the balances of the accounts appearing in the ledger of Vibe Tribe Inc. are as…
A: Vibe Tribe Inc. Income statement For the year ended March 31, 20Y5 Particular Amount Sales…
Q: I had a 50/50 chance of getting this question right and the answer is 12.2%, but I don't know how to…
A: The tax exempt investment is a type of investment in which the tax will not be applied in case of…
Q: Consider a portfolio selection problem where R is the target return rate on the expected return of…
A: The Sortino ratio is a risk-adjusted measure of return, defined as the ratio of the expected return…
Q: 1. 2. 3. P Php7,500.00 Php8,750.00 r/year 17.4% 19.5% t 15 months 3 years 250 days ASAP ONLY ROUND…
A: Please refer to the excel spreadsheet below. The first cell is A1 for formulae reference. P…
Q: XYZ Ltd., experts a net income of $150,000. The company has 10% of 500,000 debentures. The equity…
A:
Q: Sonova Corporation has an operating income (EBIT) of $215,000 and a 40% tax rate. The firm has…
A: The operating profit (EBIT) is $215,000. The tax rate is 40%. The short term is $115,000 and…
Q: a-1. What is the NPV for the project if the company's required return is 12 percent? (A negative…
A: First, we will have to use the terminal cash flow approach to calculate the value of cash flows and…
Q: Ricky Ripov’s Pawn Shop charges an interest rate of 18.25 percent per month on loans to its…
A: APR (Annual Percentage Rate) and EAR (Effective Annual Rate) are two ways of measuring the cost of…
Q: The Meadows Corporation needs to raise $52 million to finance its expansion into new markets. The…
A: Issue of shares is one of the important source of finance being used in business. Some commission…
Q: Compute the interest. Round off your final answer up to 2 decimal places. 1. P27,000 at 6.5% simple…
A: Answer 1. Principal = P27,000 Interest Rate = 6.5% Year = 1 Simple Interest =…
Q: What is the market value of a $1,000 face-value bond with a 10% coupon rate when the market's rate…
A: The annual income that a bondholder can anticipate while owning the bond is known as the coupon…
Q: 11. Mr. and Mrs. Nash planned to make 16 identical yearly payments to fund the college education of…
A: Two unrelated question appear on the screen. They have multiple sub parts as well. All the sub parts…
Q: 16. In Decembe income, interest percent. The R ROA= M
A: Return on assets is very important profitability ratio and indicates that how much is firm efficient…
Q: Tommy Tutone is buying a $250,000 house and facing $6,500 in closing costs. He plans to put 20% down…
A: Amortization table In a table known as a loan amortization schedule, each periodic loan payment that…
Q: Corporation X can issue straight 5-year debt (bonds) at a yield to maturity of 5%. If a 5-year…
A: A structured note issued by Corporation X would provide the return from the bonds minus the cost of…
Q: Pakar & Son Sdn Bhd is looking to invest in a new project, with a project life of 4 years. The…
A: The initial cost of the project refers to the cash that has been incurred in the beginning to set up…
Q: nt Interest Solve the following. Show solutions. Round off answers up to 2 (two) decimal places.…
A: Discount is the amount of interest that is being paid on the face value and discount depends on the…
Q: Find the present value of the given future amount. $43,000 for 22 months at 5% simple interest
A: Answer Future Value $43,000 Time 22 Months Period In Years 1.83 Years Rate 5%
Q: McEwen Mining recently reported $130,000 of sales, $71,500 of operating costs other than…
A: Solution: Net income means the net earnings available with a firm after deducting all its operating…
Q: The previous year's balance sheet for Brown's Produce showed total common equity of $4,050,000 and…
A: Book value per share refers to the value of common equity as per the balance sheet of the company. A…
Q: What is the future value of the lump sum of $4,900 today that is invested for 8 years at 7 percent…
A:
Q: You owe $2,500 in 5 months and $4,750 in 15 months. Your creditor has agreed to let you make one…
A: The calculation of interest amount or the total amount using single interest rate where the interest…
Q: Fritz Benjamin buys a car costing $17900. He agrees to make payments at the end of each monthly…
A: The loan amount refers to the money that is borrowed by the borrower from the lender in against of…
Q: Corporations can raise capital using either debt (and must pay interest) or equity (and are expected…
A: Dividend per share is $2.15. The tax rate is 35%.
Q: A new employee charged $6740 on his credit card to relocate for his first job. After noticing that…
A: Monthly payments refer to the amount that is paid every month for the repayment of the loan amount…
Q: A stock currently sells for $47. The dividend yield is 3.5 percent and the dividend growth rate is…
A: Data given: Price of stock= $47 Dividend yield=3.5%
Q: 13.SMR Compa percent and exp outstanding. On learnings per sha
A: Earnings per share is amount of income available for the shareholders and that much can be…
Q: Hi, I need help with solving the following problem; thank you: A bond has a par value of $1,000, a…
A: The bond price = par value * bond quote Bond Price = $1000×103.12100Bond Price = $1031.2
Q: Eccentricity, Incorporated had $300,000 in 2018 taxable income. Using the tax schedule from Table…
A: Eccentricity taxable Income = $300,000 Total Income tax = 22,250 + ( 300,000 - 100,000)*39% = $…
Q: Too Young, Incorporated, has a bond outstanding with a coupon rate of 6.5 percent and semiannual…
A: The cost of debt is the expected return of the bond. The after-tax cost of debt is the cost of debt…
Q: Suppose the risk-free is 5 %, the average investor has a risk aversion co-efficient of A = 2, and…
A: The market risk premium (MRP) is the excess return of the market portfolio over the risk-free rate.…
Q: 2. A fund is to be created which pays out a scholarship of £9,000 every year in perpetuity. The…
A: Present value of annuities based on time and interest rate would give the equivalent money required…
Q: 7-28 Select the INCORRECT the following: statement from among a. Under the Markowitz formulation, a…
A: Markowitz Theory In order to establish the optimum portfolio, Markowitz developed a formula that…
Q: Solve the given problem about loan. Show your solution. 1. A smart phone was bought at an amortized…
A: To find the monthly amortization, we need to calculate the total interest and then add that to the…
Q: How long, To The nearest year. will it gek take an investment to double if it is continuously…
A: Continuously compounded interest rate refers to the interest rate that is calculated on the…
Q: an students invest in cryptocurrency? Explain thoroughly.
A: Cryptocurrency is virtual currency and not actual currency, this is new type of currency and new…
Q: I receive $10,000 a year in perpetuity. The original investment was $100,000. What is my rate of…
A: The perpetuity is reflection of stream of cash flows which will be continuing forever. The…
Q: 1. Mr. Santos would like to have P6,500,000 in his account by the end of 6 years. How much should he…
A:
Q: ind the time required, to the nearest 0.1 year, for the investment to reach the desired goal: a)…
A: Money that is invested today grows in the future. This happens due to a concept called compounding.…
Q: how will you advice the company based on the 1) payback period 2) Net present value of the…
A: First let us define the payback period and NPV. Payback period is the time taken by the project to…
Q: A builder is offering $119,757 loans for his properties at 9 percent for 25 years. Monthly payments…
A: One type of debt is a loan. The lender gives the borrower a loan at a certain interest rate for a…
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
6 years ago, your company purchased a lot of land for $769203 . You received an offer to purchase the land for $1131668. If you sell it at this price, what is the implied return?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 7 years ago, you bought an empty lot for $410893. Your plans have changed so you are thinking about selling it. You received an offer to purchase the lot for $613821. If you sell it at this price, what is the implied return? Answer:A realtor found a deal on a housing development and thinks it can be sold for $658,813 in 4 years due to future commercial development. Using an annual discount rate of 2.14%, what is the present value of this land?You purchased a stamping machine that cost $60,000 five years ago. At thattime, the machine was estimated to have a service life of five years with salvagevalue of $5,000. These estimates are still good. The property has been depreciatedaccording to a seven-year MACRS property class. Now (at the end of year5 from purchase) you are considering selling the machine at $10,000. What book value should you use in determining the taxable gains?(a) $10,000(b) $13,386(c) $16,065(d) $17,520PROBLEMS Note: Unless otherwise specified, use current tax rates for corporate taxes. Check the IRS website for the most current tax rates for corporations.Depreciation Concept 9.1 Identify which of the following expenditures is considered as a capital expenditurethat must be capitalized (depreciated):(a) Purchase land to build a warehouse at $300,000.(b) Purchased a copy machine at $15,000.(c) Installed a conveyor system at a cost of $55,000 to automate some part of production processes.(d) Painted the office…
- You purchase a two acre office park for $5,000,000. Calculate the depreciation that you can deduct when estimating your annual tax liability if 75% of purchase price is allocated to depreciable real property. What if the property was an apartment complex?Ansel purchased raw land three years ago for $200,000 to hold as an investment. After watching the value of the land drop to $150,000, he decided to contribute it to Mountainside Developers LLC in exchange for a 5 percent capital and profits interest. Mountainside plans to develop the property and will trat it as inventory, like all the other real estate it holds. If Mountainside sells the property for $150,000 after holding it for one year, how much gain or loss does it recognize, and what is the character of the gain or loss? If Mountainside sells the property for $125,000 after holding it for two years, how much gain or loss does it recognize, and what is the character of the gain or loss? If Mountainside sells the property for $150,000 after holding it for six years, how much gain or loss does it recognize, and what is the character of the gain or loss?You have an opportunity to acquire a property from First Capital Bank. The bank recently obtained the property from a borrower who defaulted on his loan. First Capital is offering the property for $200,000. If you buy the property, you believe that you will have to spend (1) $10,500 on various acquisition-related expenses and (2) an average of $2,000 per monthduring the next 12 months for repair costs, etc., in order to prepare it for sale. Because First Capital Bank would like to sell the property as soon as possible, it is willing to provide $180,000 in financing at 8 percent interest for 12 months payable monthly (interest only). Your market research indicates that after you repair the property, it may sell for about $225,000 at the end of one year. Furthermore, you will probably have to pay about $3,000 in fees and selling expenses in order to sell the property at that time. If you wanted to earn a 20 percent return compounded monthly, do you believe that this would be a good…
- You purchase a quarter section (160 acres) of land for $176,000 today and sell it in exactly 9 years for $525,000 at auction. At what annual compound rate did the value of your land grow?You have an opportunity to acquire a property from First Capital Bank. The bank recently obtained the property from a borrower who defaulted on his loan. First Capital is offering the property for $200,000. If you buy the property, you believe that you will have to spend (1) $10,500 on various acquisition related expenses and (2) an average of $2,000 per month during the next 12 months for repair costs, and so on, in order to prepare it for sale. Because First Capital Bank would like to sell the property as soon as possible, it is willing to provide $180,000 in financing at 4.25 percent interest for 12 months payable monthly (interest only). Your market research indicates that after you repair the property, it may sell for about $225,000 at the end of one year. Furthermore, you will probably have to pay about $3,000 in fees and selling expenses in order to sell the property at that time. If you wanted to earn a 20 percent return compounded monthly, do you believe that this would be a…Carey Company owns a plot of land on which buried toxic wastes have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues, Carey wishes to sell the land now. It has located three potential buyers: Buyer A, who is willing to pay $1,000,000 for the land now, Buyer B, who is willing to make 20 annual payments of $110,000 each starting from today. Buyer C, who is willing to make 10 annual payments of $220,000, but the payments will begin two years from today. Assuming that the appropriate rate of interest is 9%, to whom should Carey sell the land? Why? Please show your calculations to compare the present values of the three options.
- Claude purchased raw land three years ago for $1,000,000 to develop into lots and sell to individuals planning to build their dream homes. Claude intended to treat this property as inventory, like his other development properties. Before completing the development of the property, however, he decided to contribute it to South Peak Investors LLC when it was worth $3,000,000, in exchange for a 10 percent capital and profits interest. South Peak’s strategy is to hold land for investment purposes only and then sell it later at a gain. a. If South Peak sells the property for $3,110,000 four years after Claude’s contribution, how much gain or loss is recognized, and what is its character? [Hint: See §724.] [capital gain/loss or Ordinary gain/loss] b. If South Peak sells the property for $3,110,000 five and one-half years after Claude’s contribution, how much gain or loss is recognized, and what is its character?You purchased a box-making machine that cost $50,000 five years ago At that time, the system was estimated to have a service life of five years with salvage value of $5,000. These estimates are still good. The property has been depreciated at a declining balance CCA rate of 30%. Now (at the end of year 5 from pur chase) you are considering selling the machine for $10,000. What UCC should you use in determining the disposal tax effect?An asset with initial cost base of 6 million was bought 5 years ago.At the end of the current year (fifth year) the asset is sold by 1.1 million. The asset belongs to the 7 years MACRS property class. Knowing that the gain (loss) tax rate 40%,what is the net proceeds resulted from selling the asset? Type your answer in ms word