Business, 09.04.2021 02:20, erichenkell2700
A home has a price of $500,000. The down payment will be 20% with a mortgage on the remaining $400,000 with an interest rate of 3%/yr. The monthly mortgage is $1,686.42. The opportunity cost of capital is 7%/yr. The home is expected to increase in value by 2%/year. The property taxes are $6000/yr. Insurance and expected maintenance is $3000/yr. The tax rate is 30%. Assume that the buyer itemizes taxes and can make use of the deductions associated with the home. After computing the explicit and implicit costs, the gain in equity, and the tax benefits, compute the net annual cost for the first year. Use the same procedures we have in solving this type of problem.
Answers: 2
Other questions on the subject: Business
Business, 21.06.2019 21:40, khynia11
Torino company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. the company paid total cash dividends of $3,500 in its first year of operation. the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
Answers: 2
Business, 22.06.2019 14:00, Kate1678
Wallace company provides the following data for next year: month budgeted sales january $120,000 february 108,000 march 140,000 april 147,000 the gross profit rate is 35% of sales. inventory at the end of december is $29,600 and target ending inventory levels are 10% of next month's sales, stated at cost. what is the amount of purchases budgeted for january?
Answers: 1
Business, 22.06.2019 20:10, spicee68003
Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. he wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting peppy's pizzazzeria up and running. peppy should: trust his basic instincts and try to put it together without the advice of lawyers and accountants. delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year. immediately hire full-time lawyers and accountants for his staff. consult with a lawyer and accountant even though the budget is tight.
Answers: 1
Do you know the correct answer?
A home has a price of $500,000. The down payment will be 20% with a mortgage on the remaining $400,0...
Questions in other subjects:
History, 18.10.2019 15:50
English, 18.10.2019 15:50
History, 18.10.2019 15:50
Chemistry, 18.10.2019 15:50
Mathematics, 18.10.2019 15:50
