Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1. The difference between the rate of return on assets and the cost of borrowing is:
(A) financial leverage
(B) spread
(c) debt service
(D) none of the above

2 When the rate of return on assets exceeds the cost of borrowing, it represents:
(A) negative spread
(B) positive spread
(C) favorable spread
(D) unfavorable spread

3 If the real estate investment that is being financed is the investor's sole asset, the investor's debt-to-equity ratio will be:

(A) the same as the loan-to-value ratio
(B) greater than the loan-to-value ratio
(C) less than the loan-to-value ratio
(D) unrelated to the loan-to-value ratio

4. A property has a potential gross rent of $1,500,000; operating expenses of $765,750; a vacancy allowance of $45,000, and other income of $9,000. What is its effective gross income?

(A) $1,455,000
(B) $1,464,000
(C) $698,250
(D) none of the above

5. In contemporary risk analysis:
(A) risk is defined as the measurable likelihood of variance from the most probable outcome
(B) no attempt is made to quantify risk
(C) the terms risk and uncertainty are used synonymously
(D) investors are viewed as being risk-neutral

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926121

Have any Question? 


Related Questions in Basic Finance

1 what are the four important issues influencing the

1. What are the four important issues influencing the response process that are listed in this chapter? Describe each. 2. What was the goal of the International Decade for Natural Disaster Reduction? 3. How does the Unit ...

1 what is the primary distinction between mortgage-related

1. What is the primary distinction between mortgage-related securities backed by residential mortgages and those backed by commercial mortgages? 2. Name the major types of credit enhancement used for commercial-backed mo ...

What is the major concern construction lenders express

What is the major concern construction lenders express about the income approach to estimating value? Why do they prefer to use the cost approach when possible? In the latter case, if the developer has owned the land for ...

Can someone help provide the steps and solution to this

Can someone help provide the steps and solution to this problem. X-treme Vitamin Company is considering two investments, both of which cost $10,000. The cash flows are as follows: Year Project A Project B 1.............. ...

1 what is the base salary of the international assignee2

1. What is the base salary of the international assignee? 2. How much is the G&S differential and how was it calculated? 3. How much is the housing differential and how was it calculated? 4. What type of allowance did th ...

Mountain minerals pays a constant annual dividend one year

Mountain Minerals pays a constant annual dividend. One year ago, when you purchased shares of that stockat $40 a share, the dividend yield was 6.5 percent. Over this past year, the inflation rate has been 3.2 percent.Tod ...

Go to yahoo and download recent balance sheets for

Go to Yahoo! and download recent balance sheets for Microsoft, Merck, Archer Daniels Midland, and General Mills (ticker symbols MSFT, MRK, ADM, and GIS, respectively). Calculate several debt ratios for each company and c ...

A firm has a capital structure that uses 45 percent equity

A firm has a capital structure that uses 45 percent equity, 20 percent preferred shares, and 35 percent debt. The preferred shares have a current yield of 5.5 percent. The debt has a coupon rate of 10 percent and a curre ...

Five years ago in conjunction with a financial

Five years ago, in conjunction with a financial restructuring, Laurenberg Electric sold a $100 million issue of bonds at a coupon interest rate of 12 percent. Each bond came with 30 detachable warrants. Each warrant enti ...

1 the black-scholes-merton option pricing model assumes the

1. The Black-Scholes-Merton option pricing model assumes the stock price changes are lognormally distributed. Show graphically how this distribution changes when an investor is long the stock and short the call. 2 .The B ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro