The table below provides the total revenues and costs for a dental practice for one year Total Revenues (5) 950,000 Total Costs (5) Wages and Salaries 600,000 Risk free return of 4% on owner's capital of $1,000,000 40,000 Interest on bank loan 30,000 150,000 10,000 Cost of supplies Depreciation of capital equipment Additional wages the dentist owner could have earned in her next best alternative Risk premium of 5% on the owner's capital of $1,000,000 a. What are the explicit costs for this firm? The explicit costs are: (Type an integer) 0 50,000

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An engineering firm estimates that its cost for employer sponsored health insurance will be $750,000 next year and increase at 11% per year for the next 5 years. The company CFO wants to budget a uniform amount each year to cover these costs. If the firm's rate of return is 6% per year, how much should be invested each year for employer sponsored health care? Express your answer in $ to the nearest $1,000.

You volunteer on a local fire department and are asked to help in the purchase of a new fire engine. You seek out a loan from a bank in which they state the annual interest on the loan would be 10%. However, the interest compounds once per quarter. What is the effective annual percentage rate (APR) if you select this loan?     10.38%     10%     15.1%     1.11%

You are an employee of University Consultants, Limited, and have been given the following assignment. You are to present an investment analysis of a small retail income-producing property for sale to a potential investor. The asking price for the property is $1,360,000; rents are estimated at $174,080 during the first year and are expected to grow at 2.5 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A fully amortizing 70 percent loan can be obtained at 6 percent interest for 30 years (total annual payments will be monthly payments × 12). The property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold.   Required: a. What is the first-year debt coverage ratio? b. What is the terminal capitalization rate? c. What is the investor’s expected before-tax internal rate of return on equity invested (BTIRR)? d.…

fill out the worksheet using the following information: Theoretical Housing Situation: Renting: Monthly Rent: $1,800 Renter’s Insurance: $200 per year Security Deposit: $2,000 After-tax Savings Rate: 5% Buying: Home Price: $250,000 Down Payment: $50,000 Loan Amount: $200,000 Loan Term: 25 years Interest Rate: 3.5% Property Taxes: 1.25% of the home price Homeowner’s Insurance: 0.4% of the home price Maintenance Costs: 1.5% of the home price Closing Costs: $5,000 After-tax Rate of Return: 4% Tax Rate: 25% Estimated Annual Appreciation: 2%

You have been offered a contract to work as a consultant. The company will pay you $6215 per month.  In addition, once you complete the work in 4 years, you will receive $46865. Your required return is 6.57%, what is this contract worth today? show all step and fomular. Answer