You are interested in purchasing an apartment complex for
$2,000,000 that has Net Operating Income (NOI)...
You are interested in purchasing an apartment complex for
$2,000,000 that has Net Operating Income (NOI) of $120,000 and is
financed with an 80% LTV mortgage at 4%
A. What is the Cap Rate?
B. What is the ROA?
C. What is the leverage ratio?
Net operating income (NOI) is expected to be level at $100,000
per year for the next...
Net operating income (NOI) is expected to be level at $100,000
per year for the next five years because of existing leases.
Starting in Year 6, the NOI is expected to increase to $120,000
because of lease rollovers and increase at 2 percent per year
thereafter. The property value is also expected to increase at 2
percent per year after Year 5. Investors require a 12 percent
return and expect to hold the property for five years. What is the...
Using the following information, compute net operating income (
NOI ) for the first year of...
Using the following information, compute net operating income (
NOI ) for the first year of operations. Use an “above-line”
treatment of capital expenditures.
Number of apartments: 10
Rent per month per apartment: $800
Expected vacancy and collection loss: 5 percent
Annual maintenance: $12,000
Annual depreciation: $6,000
Property taxes: $4,000
Property insurance: $5,000
Management: $6,000
Capital expenditures: $5,000
Income taxes: $9,000
Other operating expenses: $3,000
Annual mortgage debt payments: $14,000
a)
$27,200
b)
$41,200
c)
$47,200
d)
$50,200
e)
$56,200
There are two firms, Hello and olleH. Each has expected Net
Operating Income (NOI) of $18...
There are two firms, Hello and olleH. Each has expected Net
Operating Income (NOI) of $18 million each year forever, and the
cash flow to Hello will always be exactly the same as that to
olleH, whether it ends up above or below the expected amount. Hello
is all equity (stock). olleH has some equity, along with $100
million in debt (market value and face value). olleH’s debt pays 5%
interest at the end of each year, and olleH has...
A property produces a net operating income of $20,000 in year
one ; $30,000 in year...
A property produces a net operating income of $20,000 in year
one ; $30,000 in year two, and $45,000 in years 3 to 6. The
property will be sold in year five. The resale price is estimated
using a terminal capitalization rate of 8.5% applied to the sixth
year NOI. What is the value of the property today using a 10.5%
discount rate?
A. $468,892
B. $502,634
C. $454,872
D. $424,337
(Using degree of operating leverage) Last year Baker-Huggy
Inc. had fixed costs of
$200,000
and net...
(Using degree of operating leverage) Last year Baker-Huggy
Inc. had fixed costs of
$200,000
and net operating income of
$27,000.
If sales increase by
20
percent, by how much will the firm's NOI increase? What would
happen to the firm's NOI if sales decreased by
22
percent?
If sales increase by
20%,
the change in the firm's NOI will be
▼
of
%.
(Select from the drop-down menu and round to two decimal
places.)
Why is “net operating income” on the functional format income
statement the same as “net operating...
Why is “net operating income” on the functional format income
statement the same as “net operating income” on the contribution
format income statement.
Gross Margin
8,603,560
46.76%
10,530,320
49.30%
11,772,882
48.27%
30,762,309
100.00%
less: Marketing Expenses (Sch 7)
5,358,000
29.12%
6,194,000
29.00%
7,010,000
28.74%
8,781,000
28.54%
less: G & A Expense (Sch 8)
1,845,000
10.03%
2,004,000
9.38%
2,202,000
9.03%
0
0.00%
Net Operating
Income
1,400,560
7.61%
2,332,320
10.92%
2,560,882
10.50%
21,981,309
71.46%
Contribution Margin
9,106,560
49.57%
10,686,320
50.10%
11,345,882...