Determine the first-year equity after-tax cash flow (ECF) if there are no capital improvement expenditures or reversion items in Year 1. (3 Marks)

Question 1. Consider the following information for the first year of a proposed commercial property acquisition: effective gross income is estimated to be $1.8 million; total outgoings are $490,000; t

Question 1.

Consider the following information for the first year of a proposed commercial property acquisition: effective gross income is estimated to be $1.8 million; total outgoings are $490,000; the investor has a 35% marginal tax rate. The asking price is $12.5 million. The property is going to be acquired with a 75% loan-to-value ratio mortgage, interest-only with a 10-year term and 6% p.a. interest rate. Depreciation is straight-line over 39 years. It is estimated that the depreciation expense is $320,000 in year 1.

What is the net income of the property in Year 1? (1 Mark)

Using an appropriate financial ratio, discuss the chances of loan approval for this investment.

(2 Marks)

Determine the first-year equity after-tax cash flow (ECF) if there are no capital improvement expenditures or reversion items in Year 1. (3 Marks)

See Question 2 in attached file

Question 3. A borrower obtained a fully amortising loan of $800,000 at 4% p.a. for 25 years. After 5 years, mortgage rates have dropped, so that a fully amortising 20-year loan can be obtained at 3.5% p.a. The early repayment (exit cost) and other refinancing costs will be $4,000.

  1. What is the current monthly payment and current total outstanding balance after 5 years? (2 Marks)
  2. Is refinancing desirable? (3 Marks)
  3. Due to Covid-19, the new lender offers interest-only mortgage payment for the next 12 months. Assuming the borrower agrees to refinance and accepts this offer from the lender, what is the interest-only mortgage payment of the first month on the loan balance after 5 years? (1 Mark)
  4. If interest-only mortgage payment is maintained for the entire 12 month period, explain how this would impact the loan balance? (2 Marks)

What is the current price of the corporate bond?

Instructions: The yield of the 10-year US Treasury bond is 1.20%. It is the risk-free rate. You work for an investment manager and your boss asks you to calculate the price of a 10-year corporate bon

Instructions:

The yield of the 10-year US Treasury bond is 1.20%. It is the risk-free rate. You work for an investment manager and your boss asks you to calculate the price of a 10-year corporate bond that yields 3.00% more than its risk-free rate and has a face value of $1,000. The fixed coupon of this corporate bond is 5.00%. Both bonds pay coupons annually.

• What is the current price of the corporate bond?

• Calculate the price of the bond if its yield increased by 1.00%. • Calculate the price of the bond if its yield decreased by 1.00%. • Please discuss the risk associated with this change in interest rates.

Requirements:

• Submit a Word document or Excel spreadsheet.

• At least THREE pages in length, excluding the Title and Reference pages. Be sure to read the criteria below by which your work will be evaluated before you write and again after you write

Write a 1 page paper on biography of el pipila. Biography of El Pipila Juan Jose de los Reyes Martinez Amoro is better known to history by his nick “Pipila” (Reding 61).

  • Write a 1 page paper on biography of el pipila. Biography of El Pipila Juan Jose de los Reyes Martinez Amoro is better known to history by his nick “Pipila” (Reding 61). He was a local hero ofthe Guan

    Write a 1 page paper on biography of el pipila. Biography of El Pipila Juan Jose de los Reyes Martinez Amoro is better known to history by his nick “Pipila” (Reding 61). He was a local hero ofthe Guanajuato city in Mexico, who played a major role in Mexican Independence. He was a “miner” in a small mining city who later emerged as a great fearless warrior and inspired many others to participate actively in the “war of independence” (61). During the Mexicans war against Spain, the latter barricaded themselves in a most fortified building of the city which was the city’s grain store with solid stone walls and enough space for archers to repel attackers. Spaniards were safe and secure in that building, as the Mexicans were reluctant to attack being intimidated by defeat echoed through the powerful walls of the building.

    However, El Pipila, regardless of his personal safety, rose to the occasion and answered head on to his call of duty. He strapped a large stone on his back, held a flaming torch in his hand and set on his mission to wreak havoc on the cruel oppressors. After he reached the building, he crawled towards its “wooden doors,” the only known weak spot of the building, and set it on fire allowing the insurgent army to enter the building and claim their first victory of the struggle for independence (61). Mexico was one of the richest and most important colonies of Spain’s kingdom during that time. Being under the territory of New Spain, Mexico was the main source of gold and silver for the Spaniards and contributed highly for the emergence of Spain as the great power then.

    During the Spanish rule, the people of Mexico were treated as slaves and third class individuals. The condition of the people influenced a number of progressive personalities to think about gaining independence from Spain and the “need for political reform(s)” to make the city a new free country (66). Amongst these people, was a non-traditional catholic priest, “Miguel Hidalgo,” who did a lot of work for the betterment of the native population (61). It was in the year 1810 that the struggle for independence was initiated. Hidalgo gathered people, mostly peasants and a few trained officials to form the “Insurgent Army,” which marched for a number of days through the region gaining more people and resources for the struggle (61).

    Once they were all set, they planned to attack the biggest and the most crucial Spaniard post in the zone, the world famous mining town of Guanajuato, the city of the great El Pipila. The famous Mexican independence hero bravely helped his fellow members of the insurgent army to gain their first victory in their struggle for independence. On the streets of the colonial city of Guanajuato, stands the statue of El Pipila, built in the honor of this great Mexican who played a crucial role in the attainment of independence. With his “torch held high,” Pipila’s statue is “Mexico’s ‘Statue of Liberty,” a token of history that resonates the glorious triumph of Mexicans claiming their rightful freedom from Spaniards (61).

    Works Cited

    Reding, Andrew. The Next Mexican Revolution. 1996. World Policy Journal, 13/3. pp. 61-70. Web. 24 February 2013.

How many shares of stock are outstanding?

Instructions Research Paper: Part II In Unit II, you began working on your research paper that will be due in Unit VII of this course. In this unit, you will continue researching the company that you
InstructionsResearch Paper: Part IIIn Unit II, you began working on your research paper that will be due in Unit VII of this course. In this unit, you will continue researching the company that you selected for your paper. For this assignment, evaluate the following items in relation to your chosen company:

Which stock market exchange is the company listed on?
Look at the past three years’ worth of stock activity for your company.
Has the company ever initiated a stock split?
How many shares of stock are outstanding? Authorized? Issued?
Would you invest in this company based on what you have evaluated? Why, or why not?
Compare this company’s stock to another company within the same industry. How does the stock compare in terms of price and activity? Explain.
Your paper must be at least two pages in length, and you must use at least two sources. Adhere to APA Style when creating citations and references for this assignment.