Business, 23.03.2020 18:29, lujaynsparkles
A store has 5 years remaining on its lease in a mall. Rent is $1, 900 per month, 60 payments remain, and the next payment is due in 1 month. The mall's owner plans to sell the property in a year and wants rent at that time to be high so that the property will appear more valuable. Therefore, the store has been offered amiddot"great deal" (owner's words) on a new 5-year lease. The new lease calls for no rent for 9 months, then payments of $2, 700 per month for the next 51 months. The lease cannot be broken, and the store's WACC is 12% (or 1% per month)
a. Should the new lease be accepted?
b. If the store owner decided to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and the old leases? Round your answer to the nearest cent. Do not round your intermediate calculations. $
c. The store owner is not sure of the 12% WACC - it could be higher or lower. At what nominal WACC would the store owner be indifferent between the two leases? Do not round your intermediate calculations. %
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 06:10, jakeyywashere
Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) wacc %
Answers: 2
Business, 22.06.2019 07:20, staxeeyy767
Richardson hired j. c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j. c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."
Answers: 1
Business, 22.06.2019 10:00, makennskyee1198
Carrie works at a canned food production factory. the government wanted to give a boost to the salt industry, so it lined up numerous subsidies and tax exemptions for the sector. this lead to a decrease in production costs. this also meant that consumers could access canned foods at a lower price, which lead to an increase in demand for the product. which kind of economic system is carrie’s company dealing with? carrie’s company is dealing with a/an economy.
Answers: 2
Do you know the correct answer?
A store has 5 years remaining on its lease in a mall. Rent is $1, 900 per month, 60 payments remain,...
Questions in other subjects:
English, 21.02.2021 21:50
Mathematics, 21.02.2021 21:50
Geography, 21.02.2021 21:50
Mathematics, 21.02.2021 21:50
Physics, 21.02.2021 21:50
Mathematics, 21.02.2021 21:50
History, 21.02.2021 21:50
History, 21.02.2021 21:50
