A property was bought for 100 million and was sold 10 years later for $240 million....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A property was bought for 100 million and was sold 10 years later for $240 million. The property was initially financed with a 65% LTV mortgage. The interest rate on the mortgage was 3.75% and had a 30 year amortization schedule. The property generates $12,600,000 per year. What is 44 the annualized retum. A property was bought for 100 million and was sold 10 years later for $240 million. The property was initially financed with a 65% LTV mortgage. The interest rate on the mortgage was 3.75% and had a 30 year amortization schedule. The property generates $12,600,000 per year. What is 44 the annualized retum.
Expert Answer:
Answer rating: 100% (QA)
Step 1 Payment Formula PMT rate period Loan Lump sum paym... View the full answer
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Posted Date:
Students also viewed these finance questions
-
A vacation property valued at $25 000 was bought for 15 payments of $2200 due at the end of every 6 months. What nominal annual rate of interest compounded annually was charged?
-
A vacation property valued at $25 000 was bought for 15 payments of $2200 due at the beginning of every 6 months. What nominal annual rate of interest was charged?
-
On December 31, 2017, Ainsworth, Inc., had 600 million shares of common stock outstanding. Twenty million shares of 8%, $100 par value cumulative, nonconvertible preferred stock were sold on January...
-
Suppose a single 802.11n client is connected to an 802.11n access point and there is no other client or access point in the neighborhood. The client senses the medium, then sends a 2000-Byte frame,...
-
Paula is a self-employed doctor and is considering whether to establish a defined contribution H.R. 10 plan. Paulas only employee is a full-time nurse who has been employed by Paula for seven years....
-
The Brief Case in Chapter 4 introduced the Cost of Living dataset that contains an estimate of the cost of living for 322 cities worldwide in 2013. In addition to the overall Cost of Living Index...
-
Identify and describe the key attributes that might mitigate a red flag, suggesting that no bad act or compliance issues exist.
-
Value engineering, target pricing, and locked-in costs. Pacific Dcor, Inc., designs, manufactures, and sells contemporary wood furniture. Ling Li is a furniture designer for Pacific. Li has spent...
-
Problem 3 For a multiple linear regression model with 4 variables, where ~ Y = Bo+B1X1 + B2X2 + 3X3 + B4X4 + , N(0,2), what is the test statistic for each of the following tests? and what is the...
-
Abby Ellen opened Abbys Toy House. As her newly hired accountant, your tasks are to do the following: 1. Journalize the transactions for the month of March. Abby uses special journals for sales on...
-
Lim and King, who are young entrepreneurs, formed a partnership called S & D Enterprise, to sell high tech drones. Neither of them have any past experience in selling high tech devices and hence...
-
How does functionalist theory address the complexities of globalization and social change in the contemporary world, considering how shifts in technology, economy, and communication networks impact...
-
How does the functionalist paradigm conceptualize social integration and solidarity, drawing upon Durkheim's notions of mechanical and organic solidarity to explain the mechanisms by which...
-
How does Symbolic Interactionism inform our understanding of socialization processes and the transmission of cultural norms and values, highlighting the role of symbolic interaction in shaping...
-
what ways does functionalist analysis shed light on the role of culture and norms in shaping social order, emphasizing the integrative functions of shared values and beliefs in regulating individual...
-
What are the two internal and two external participants in the analytical capital investment decision process?
-
A company selling protein powder sells to grocery stores through a distributor. The company's costs for its protein powder is $4.00/jar. It sets its recommended retail price (price paid by the end...
-
In your readings, there were many examples given for nurturing close family relationships in this ever-evolving technological society we live in Based upon your readings and research describe three...
-
Fill in the missing information assuming a correlation of.15. Portfolio Weights Bonds Stocks Bd Expected Return tndard Deviation 1.00 .80 .60 40 .20 12% 21% 6% 9%
-
Fill in the following table, supplying all the missing information. Use this information to calculate the securitysbeta. Squared Deviations Product of Returns Return Deviations Year Security Market...
-
Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 5.1% r2 = 5.8% r3 = 6.3% r4 = 7.3% What are the following forward rates, where f1,k refers to a...
-
Analyze the monetary policy transmission mechanism.
-
Explain how an open market purchase of securities by a central bank affects the banking systems balance sheet, and discuss the potential impact on the supply of bank loans.
-
Explain why monetary policymakers actions in cutting the target range for the federal funds rate to 0 to 14 percent were not sufficient to boost economic activity during the recession of 20072009.
Study smarter with the SolutionInn App