# Question

An investment opportunity having a market price of $1,000,000 is available. You could obtain a $750,000, 25-year mortgage loan requiring equal monthly payments with interest at 7.0 percent. The following operating results are expected during the first year.

Effective gross income ........... $200,000

Less operating expenses and CAPX ......... $100,000

Net operating income ............. $100,000

For the first year only, determine the:

a. Gross income multiplier

b. Operating expense ratio (including CAPX)

c. Monthly and annual payment

d. Debt coverage ratio

e. Overall capitalization rate

f. Equity dividend rate

Effective gross income ........... $200,000

Less operating expenses and CAPX ......... $100,000

Net operating income ............. $100,000

For the first year only, determine the:

a. Gross income multiplier

b. Operating expense ratio (including CAPX)

c. Monthly and annual payment

d. Debt coverage ratio

e. Overall capitalization rate

f. Equity dividend rate

## Answer to relevant Questions

Anne wants $15,000 in 5 years. If her savings account earns 6% a year, how much does she need to deposit now? a. $9,725.75 b. $11,208.87 c. $10,500 d. $12,317.51 1. Compute the future value of $1000 at 10% compounded annually for 6 years.2. Compute the present value of $1000 due in 4 years at 15%, compounded semiannually.a) Compute the future value of a 9%, 5-year ordinary annuity ...What information is typically requested in a legal letter to a client's attorney? An oligopolistic industry has two sets of demand curves. If firm 1 is the only one that changes price while the other are constant, its demand curve is: Q = 82 – 8P (1) and MR = 10.25 - 0.25Q. On the other hand, ...What is the linkage?Are there similarities between the Luddites of the 19th century and the neo-Luddites of today? What objections do they have against technology? Is our technology “dubbing us down”?Post your question

0