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NEW QUESTION: 1
Ms. Smith recently made a real estate purchase of $120,000, using financing for 80% of this investment with debt costing 9.0% interest. What would be the rate of return on her equity if the value of the parcel increased by $12,000 in her first year of ownership?
A. 20%
B. 14%
C. 10%
Answer: B
Explanation:
Do not be fooled by the trap answers of 10% or 50%! The correct solution is NOT the
$ 12,000 appreciation divided by the cost of the $120 000 original investment (i e 10%) Furthermore the correct answer is NOT $12 000 appreciation divided by the equity the $120,000 original investment (i.e.
1 0%). Furthermore, the correct answer is NOT $12,000 appreciation divided by the equity stake of
$ 24,000 (i.e.50%). The correct answer requires that cash flow return be divided by the equity in the investment. Candidates should quickly determine that the equity in the investment is 20% of the $120,000 purchase price or $24,000. However, in order to compute the true ROI, analysts need to adjust the appreciation for related financing expenses.
Since the property appreciated $12,000, the cash flow from the property is the $12,000 appreciation less interest of $8,640 ($120,000 X .80 X .09). Thus, her cash flow for the year was not $3,360, not $12,000.
The $3,360 increase in cash flow divided by her original $24,000 equity stake provided a return of 14%.
NEW QUESTION: 2
HOTSPOT
You cannot get to any site on the Internet or on the school's intranet. Your school uses DHCP.
You check your network settings, which are configured as shown in the following image: You need to change the settings to access websites.
Use the drop-down menus to select the answer choice that completes each statement. Each correct selection is worth one point.
Answer:
Explanation:
NEW QUESTION: 3
インターフェイスがオプション付きで大量のトラフィックを受信する疑いがある場合、IP SLAを確認するためにどのコマンドが使用されますか？
A. トラックを表示
B. タイマーを表示
C. 遅延を表示
D. しきい値を表示
Answer: A
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