1. Price is ten times PGI, there are 10% vacancies, operating expenses are 40% of EGI. You are financing 60% of the purchase price, and the DSCR equals exactly What is the equity dividend rate (EDR)? For the property in number 1 above, what is the cap rate?

Q: Suppose that a company yields mean returns of 20% (equity), and 9% mean returns on every peso the…

A: The mean return on equity refers to the weighted average return on equity. The return on bonds is…

Q: You purchase 500 shares of Compucon for $120 per share using a margin account. This transaction…

A: Margin call price can be found by using the following formula:

Q: Given the following information, what is the value of Long-Term Liabilities? Profits 9,000 = Fixed…

A: Long-term liabilities are the obligations of an entity which are to be repaid by the entity after a…

Q: ue=OMR. 100O, End of Year r 2=OMR. 1100, End of Year r 4= OMR 1300. Calculate A (AAGR)of the co AGRY…

A: The average annual growth rate can be calculated as follows :

Q: Q2: < DEK Corporation has ROE of 20% and a retention (plowback) ratio of 60% in 2020. Suppose the…

A: Retention ratio is the part of earnings that is retained by the company for future expansion. The…

Q: required 10% return on his money. A property had gross annual income of $110,000, a vancy rate of…

A: The property is long term investment and valuation of property is done based on the earning…

Q: The market capitalization rate for Admiral Motors Company is 7%. Its expected ROE is 12% and its…

A: market capitalization rate = r = 7%Return on Equity = ROE = 12%Earning Per Share = EPS = $6plowback…

Q: Wilde Software Development has an 11% unlevered cost of equity. Wilde forecasts the following…

A: Horizon value is computed by following formula:-Horizon value = whereCF = cash flowsg = growth ratek…

Q: Premier Corporation has an ROE of 15.3 percent and a payout ratio of 52 percent. What is its…

A: Sustainable growth rate is the maximum growth rate that a company can sustain without borrowing…

Q: Harmony Sego has a tax rate of 21%, the interest rate on debt is 10%, and the WACC is 15%. If the…

A: WACC:  "Weighted average cost of capital" represents the cost of capital from all of the sources of…

Q: The Cornelius Company has an ROE of 14.8 percent and a payout ratio of 40 percent. What is the…

A: A maximum growth rate that a company expects to sustain in the long run is term as the sustainable…

Q: A firm that is currently unlevered has WACC = rS = 10%/year. This company plans to do a…

A: The objective of the question is to calculate the cost of equity (rS) after the firm's…

Q: You are preparing to produce some goods for sale You will sell them in one year and you will incur…

A: For calculation of sell price we will use time value of money concept where future value of the…

Q: Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the…

A: Return on equity(or ROE) = Return on assets×Equity multiplier Equity multiplier is calculated as…

Q: What is the horizon value of the interest tax shield? Do not round intermediate calculations. Round…

A: Horizon value = Interest tax yield year 3 * (1+growth rate) / (Cost of equity - growth rate)Interest…

Q: Plz Use excel !!!  and show formula A company currently has a WACC of 10.6 percent and no debt. The…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Take Rf=4%, E[RM]=8%. Gamma Corporation has a CAPM beta of 1.1 and its earnings are expected to grow…

A: The P/E ratio is the ratio of price per share and earnings per share. It compares the market price…

Q: Price is ten times PGI, there are 5% vacancies, operating expenses are 40% of EGI. You are financing…

A: EDR stands for Equity dividend rate which is defined as the ratio of the single period before the…

Q: A firm will report annual Net Income of $50 and depreciation expense of $20 forever in the future.…

A: Tax shield refers to the reduction of tax liability due to tax allowable expenses. Tax allowable…

Q: You are given the following information on Kayla's Heavy Equipment: Profit margin 5.4% Capital…

A: Solution:Sustainable growth rate means the constant rate at which the firm is growing.We know, g = b…

Q: The cost of equity is 12%. The cost of debt is 5%. The tax rate is 20%. The target debt ratio is…

A: WACC means Weighted average cost of capital.WACC  = (kd*wd)+(ke*we)wherekd = after tax cost of…

Q: n equity investor is considering purchasing a company which has $1,400 of EBITDA for a 6x multiple.…

A: Equity return will the difference in investment value initially and value at end (after 3 years).

Q: The Cost of Debt and Flotation Costs. Suppose a company will issue new 25-year debt with a par value…

A: The after-tax cost of debt refers to the effective interest rate that a company pays on its debt…

Q: QA) Tanten Company has 200% debt and 80% equity. The borrowing rate is 12%. (1) If you own 4% of…

A: (Note: Debt is 20% and equity is 80%) First we'll calculate the net income by deducting interest on…

Q: The market capitalization rate for Admiral Motors Company is 6%. Its expected ROE is 10% and its…

A: This question is based on financial ratios and its use and application to determine valuation…

Q: need the answer with explanation

A:

Q: Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following…

A: The horizon value is computed  by following formula:

Q: A property has a potential gross income of $2,000,000. You estimate that vacancy should be 6% and…

A: OPEX ratio stands for operating expenses to sales ratio that is to be calculated by taking operating…

Q: Tax Shield Value Wilde Software Development has an 11% unlevered cost of equity. Wilde forecasts the…

A: Unlevered cost of equity = 11%Growth in interest expenses = 5% after Year 3Tax rate = 25%Interest…

Q: An item is originally priced to sell for $80 and is marked down 20%. A customer has a coupon for an…

A: The following basic information as follows under:-An item is originally priced to sell for $80.…

Q: The Cost of Debt and Flotation Costs. Suppose a company will issue new 20-year debt with a par value…

A: The after-tax cost of debt refers to the effective interest rate that a company pays on its debt…

Q: If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end extra $6,000 at…

A: calculation of net present value are as follows

Q: 1) A firm that is currently unlevered has WACC = rS = 10%/year. This company plans to do a…

A: The first part of the question is asking for the cost of equity (rS) after the firm has undergone…

Q: provide this answer with correct option

A: Reference:Tamplin, T. (2023b, June 9). Return on Assets (ROA) Ratio | Definition, Formula, and…

Q: You have the income of $70,000 this year and the income of $105,000 next year. The market rate is 5%…

A: Income this year = $70,000Income next year = $105,000Market rate = 5% p.aSpending this year =…

Q: equityholders at date 1? What kind of financial product has the same payoffs? Please describe the…

A: a)At date 1 ,two possible values are possible: 100*120%=120 or 100*90%=90 d=downmove=0.9 and upmove…

Q: Wilde Software Development has a 9% unlevered cost of equity. Wilde forecasts the following interest…

A: As per the given information: Unlevered cost of equity - 9% Growth in interest expenses - 5% after…

Q: 10 percent b. 25 percent c. 60 percent d. 80 percent

A:

Q: A company will produce $3.00 in earnings per share at the end of the year. Reinvested earnings can…

A: We need to use formula below to calculate PVGO of the company. The equation is whereD1= next…

Q: Blue Fire, Inc., has sales of $60 million, total assets of $42 million, and total debt of $18…

A: Note: All the given options are incorrect, so we are solving the correct one for you as per the…

Q: . What is my yield?

A: The formula for yield: (cash flow at endcash flow at the start-1)*yeardays YIELD:…

Q: A firm has an asset turnover ratio of 5.0. Its plowback ratio is 50%, and it is all-equity-financed.…

A: Asset turnover ratio =5.0Plowback ratio =50%Profit margin =3%Growth rate =5%Required:Maximum payout…

Q: Assume there are two firms with a MV of $50,000,000. Firm A consists of 10% debt and 90% equity.…

A: Given details are:Two firms with a market value of $50MN each.Firm A: 10% debt, 90% equityFirm B:…

Q: Nnana Ltd currently retains 60% of its earnings which are R6 a share this year. It earns an ROE of…

A: Retention ratio = 60%/100 = 0.60 in decimalsCurrent earnings per share = 6ROE = 30%/100 = 0.30 in…