Question
you and other investors purchase a commercial property for R6000000, consisting of R2000000 equity and R4 000 000 loan capital at 12% per year ,
you and other investors purchase a commercial property for R6000000, consisting of R2000000 equity and R4 000 000 loan capital at 12% per year , monthly compounded. The loan capital (mortgage bond) is for a 20 year period. The net lease income for the first year is R70 000 per month and the opportunity rate is 15% per year, compounded monthly. What will the return on equity be for year 1?
Step by Step Solution
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Step: 1
Key Considerations Capital Structure R2000000 equity R4000000 loan capital Debt Terms 12 annual interest monthly compounded 20year period Annual Lease ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
