FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are interested in purchasing a commercial property. You project that the propertys NOI next year will be $1,500,000. The current cap rate for similar

You are interested in purchasing a commercial property. You project that the propertys NOI next year will be $1,500,000. The current cap rate for similar properties is 7.0%. You are interested in acquiring a loan with a 30-year amortization term at a 6% annual interest rate. Based on the two metrics provided below calculate the loan amount.

FIND: PLEASE SHOW WORK

(a) LTV = 75%

(b) DCR = 1.35

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Value Investing

Value Investing

Authors: Mike Hartley

1st Edition

979-8864443309

More Books

Students also viewed these Finance questions

Question

★★★★★
You are planning an operational audit of inventory control for a company that manufactures electronic equipment such as stereos and televisions. Required Develop an audit program that identifies the...

Answered: 1 week ago

Question

★★★★★
14. How do you want to influence their attitudes and actions? What do they expect?

Answered: 1 week ago

Question

★★★★★
1. What are various schools of ps. h 1 discussed in the chapter? ye O e>gical lbough1 related to motivauon that are

Answered: 1 week ago

Question

★★★★★
My Web Wholesalers, a small company in Maine, used the Internet to do business around the country. It made offers on its Web site but did not distribute e-mails to customers who did not request...

Answered: 1 week ago

Question

★★★★★
Krista Lee can purchase a service contract for all of her major appliances for $140 a year. If the appliances are expected to last for 20 years and she earns 4 percent on her savings, what would be...

Answered: 1 week ago

Question

★★★★★
please help me get this answer. The management of Nabar Manufacturing prepared the following balance sheet for June 30 . To prepare a master budget for July. August, and September, use the following...

Answered: 1 week ago

Question

★★★★★
Insurance cost is to be distributed among manufacturing, selling and administration in the ratio of distributed to these departments? Department Manufacturing Selling Administration Cost $ $ $...

Answered: 1 week ago

Question

★★★★★
The population characteristic of interest is given below. = mean calorie content for frozen dinners of a certain type The sample mean will serve as our basis for testing a hypothesis about u. Recall...

Answered: 1 week ago

Question

★★★★★
A jet heas horizontally towars a holey plate as illustrate in the figure. The spee of the jet is 60 m/s both before an after crossing the plate. The iameters are ?=15 ?? an ?=0.5 ??. Fin the force...

Answered: 1 week ago

Question

★★★★★
compute the ratios below and interpret the results. DALE SHIRE CORPORATION Sales Less: Cost of Sales Gross Profit on Sales 2018 $300,000 120,000.00 180,000.00 Less: Operating Expenses 125,000.00...

Answered: 1 week ago

Question

★★★★★
Provided below are an analyst's forecasts of a company's revenue, net operating profit after tax (NOPAT), and net operating assets (NOA) as of 12/31/2021. Forecast Horizon Period ($ millions)...

Answered: 1 week ago

Question

★★★★★
What value would be recorded for total sales revenue on the income statement for 2020?

Answered: 1 week ago

Question

★★★★★
If management estimates about 5 percent of sales to be written off each month, which month(s) exceeded that estimate?

Answered: 1 week ago

Question

★★★★★
Which months accounts receivable balance is most likely to be written off?

Answered: 1 week ago

Previous Question Next Question