Calculate the ROI if a combination of debt and equity is utilized. $70,000 of gross cash flow

Question:

Calculate the ROI if a combination of debt and equity is utilized.

$70,000 of gross cash flow less $28,115 of debt service $41,855 of net cash flow

$41,855 of net cash flow divided by $200,000 of equity ROI of 20.9%

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Hospitality Financial Management

ISBN: 9780471692164

1st Edition

Authors: Agnes L DeFranco, Thomas W Lattin

See More Books

Question Posted: Jul 10, 2024 02:01 AM

See More Questions

can any expert help me with the below assignment just only 2 questions ,please read the requirment word by word and be careful about the style of the reference(APA) , file 3.1 is for question...
Complete the waterfall shown in Exhibit l0 using the benchmark assumptions outlined in the case. Under these assumptions, calculate the expected return to Wildcat and its limited partners and compare...
1.Complete the waterfall shown in Exhibit 10 using the benchmark assumptions outlined in the case. Under these assumptions, calculate the expected return to Wildcat and its limited partners and...
In Problems 544, solve each logarithmic equation. Express irrational solutions in exact form. 2 log 6 (x + 2) = 3 log 6 2 + log 6 4
A train makes a round trip on a straight, level track. The first half of the trip is 300 km and is traveled at a speed of 75 km/h. After a 0.50 h layover, the train returns the 300 km at a speed of...
The linkage is made of three pin-connected A992 steel members, each having a diameter of 1¼ in. Determine the magnitude of the force P needed to displace point B 0.25 in. to the right. t - 3...
1 What proportion of its sales revenue was spent on research and development?
1. Your company supplies ceramic floor tiles to Home Depot, Lowes, and other home improvement stores. You have been asked to start using radio frequency identification tags on each case of tiles you...
Multiple Choice Question A telephone company sells two models of phones; standard and deluxe. History shows that 70% of sales are standard phones and 30% are deluxe phones. Given the following...
Should Mr. Cruz maximize the amount of debt or equity used in this project? Why? Mr. Cruz should maximize the amount of debt for this project. Based on the ROI calculations, it is evident that Mr....
Calculate the return on investment if Mr. Cruz funds the project entirely with equity. $70,000 of cash flow divided by $410,000 of equity ROI of 17.1%
Two kilograms of water occupy 80 000 cm3 at 200 C. Its quality is nearest: (A) 0.175 (B) 0.211 (C) 0.287 (D) 0.314
4. Consider the RC circuit shown below: R C C2 The capacitors are connected in parallel. Use C = 120 F, C = 30F, R = 5002, and = 40V. The capacitors are initially uncharged and at t=0 the switch is...
The DuPont equation shows the relationships among asset management, debt management, and profitability of improving the firm's performance. Its equation is: ratios. Management can use the DuPont...
38. A pendulum bob of mass 0.200 kg is pulled to one side such that it has a height of 0.50 m relative to its rest position (that is, its lowest point). It is then released so that it swings back and...
Let A in K ^ ( n \ times n ) be an ( n \ times n ) - matrix. Show that there ist a basis B of K ^ n that consists of eigenvectors of A .
Using the "you" view is an effective way for writers to avoid taking on blame in business messages. O True False
In the generalized operational amplifier circuit shown in figure, Z 1 , Z 2 and Z 3 are impedances. The operational amplifier has an input impedance greater than 10 M? and a gain equal to up to 100...
In Problem use absolute value on a graphing calculator to find the area between the curve and the x axis over the given interval. Find answers to two decimal places. y = x 3 ln x; 0.1 x 3.1
During 2024, its first year of operations, Hollis Industries recorded sales of $11,900,000 and experienced returns of $760,000. Cost of goods sold totaled $7,140,000 (60% of sales). The company...
What is the value of a 15% coupon bond with 11% return? Is it a discount or a premium bond?
A manufacturer with a December 31 taxation year end sells new machinery for $50,000 on January 2, 2022. The cost of the machinery is $20,000. The terms of the sale require an initial payment of...

Calculate the ROI if a combination of debt and equity is utilized. $70,000 of gross cash flow

Question:

Step by Step Answer:

Hospitality Financial Management

Students also viewed these Business questions