Business, 08.04.2021 21:50, brianrodriguez2005
You are considering purchasing an office building for $2,500,000. You expect the PGI in the first year to be $450,000; vacancy and collection losses to be 9% of PGI; and operating expenses and capital expenditures to be 42 percent of effective gross income (EGI). You will finance the acquisition with 25 percent equity and 75 percent debt. The annual interest rate on the debt financing will be 5.5 percent. Payment will be made monthly based on a 25-year amortization schedule.
Required:
a. What is the implied first year overall capitalization rate?
b. What is the expected debt coverage ratio in year 1 of operations?
c. If the lender requires the DCR to be 1.25 or greater, what is the maximum loan amount?
d. What is the break-even ratio?
Answers: 3
Business, 22.06.2019 18:00, mcckenziee
When peter metcalf describes black diamond’s manufacturing facility in china as a “greenfield project,” he means that partnered with a chinese company to buy the plant . of all market entry strategies, this one carries the lowest risk. because black diamond manufactures its outdoor sports products outside the united states, what risks must its managers be aware of?
Answers: 1
Business, 23.06.2019 01:30, Ecneixneixnwism8984
What is a market? a. a system that allows people or companies to buy and sell products and services b. the number of companies willing to manufacture a specific product c. the ability to buy production materials in large quantities and save on costs d. a product's ability to satisfy a consumer
Answers: 2
You are considering purchasing an office building for $2,500,000. You expect the PGI in the first ye...
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