Hi, the first picture will be all of the questions related to the problem, but with different numbers. Could someone help me out with solving all of these questions but with the correct numbers? (the correct information I'm looking to be solved will be the second photo) thank you!
Stan Marsh, an investor, is considering two financing plans for purchasing a parcel of real estate costing $150,000. Alternative 1 involves paying cash; alternative 2 involves obtaining 80% financing at 8.0% interest. If the parcel of real estate appreciates in value by $17,500 in 1 year, calculate (a) Stan's net return and (b) his return on equity for each alternative. If the value dropped by $17,500, what effect would this have on your answers to parts a and b? a. If the parcel of real estate appreciates in value by $17,500 in 1 year, Stan's net return on alternative 1 is $ 17,500. (Round to the nearest dollar.) Stan's net return on alternative 2 is $ 7,900. (Round to the nearest dollar.) b. If the parcel of real estate appreciates in value by $17,500 in 1 year, Stan's return on equity for alternative 1 is 11.67 %. (Round to two decimal places.) Stan's return on equity for alternative 2 is 26.33 %. (Round to two decimal places.) c. If the value dropped by $17,500, Stan's net return on alternative 1 would be $ - 17,500. (Round to the nearest dollar.) Stan's net return on alternative 2 would be $ - 27,100. (Round to the nearest dollar.) Stan's return on equity for alternative 1 would be - 11.67%. (Round to two decimal places.) Stan's return on equity for alternative 2 would be 90.33 %. (Round to two decimal places.) What is the effect of a ed value your swers to parts a and b? (Select the best answer below.) CA. If the purchase is leveraged, both gains and losses are magnified. Borrowing introduces more risk. B. If the purchase is not leveraged, both gains and losses are magnified. Borrowing introduces less risk. Question is complete. Tap on the red indicators to see incorrect answers. Save Homework: Chapter 18 Problems HW Score: 0%, 0 of 20 pts 1 of 2 (0 complete) Score: 0 of 10 pts 3 Question Help P18.1 (similar to) Stan Marsh, an investor, is considering two financing plans for purchasing a parcel of real estate costing $145,097. Alternative 1 involves paying cash; alternative 2 involves obtaining 76% financing at 8.1% interest. If the parcel of real estate appreciates in value by $16,601 in 1 year, calculate (a) Stan's net return and (b) his return on equity for each alternative. If the value dropped by $16,601, what effect would this have on your answers to parts a and b? (Round to the nearest dollar.) a. If the parcel of real estate appreciates in value by $16,601 in 1 year, Stan's net return on alternative 1 is $ Enter your answer in the answer box and then click Check Answer. Check Answer Clear All
