subject
Business, 16.07.2019 16:10 moongirl4791

Astore has 5 years remaining on its lease in a mall. rent is $1,900 per month, 60 payments remain, and the next payment is due in 1 month. the mall's owner plans to sell the property in a year and wants rent at that time to be high so that the property will appear more valuable. therefore, the store has been offered a "great deal" (owner's words) on a new 5-year lease. the new lease calls for no rent for 9 months, then payments of $2,700 per month for the next 51 months. the lease cannot be broken, and the store's wacc is 12% (or 1% per month). should the new lease be accepted? (hint: be sure to use 1% per month.) if the store owner decided to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and old leases? (hint: find fv of the old lease's original cost at t = 9; then treat this as the pv of a 51-period annuity whose payments represent the rent during months 10 to 60.) do not round intermediate calculations. round your answer to the nearest cent. $ the store owner is not sure of the 12% wacc—it could be higher or lower. at what nominal wacc would the store owner be indifferent between the two leases? (hint: calculate the differences between the two payment streams; then find its irr.) do not round intermediate calculations. round your answer to two decimal places.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 22:30
Acompany determined that the budgeted cost of producing a product is $30 per unit. on june 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in june, and the company desires to have 120,000 units on hand on june 30. the budgeted cost of goods sold for june would be
Answers: 1
question
Business, 22.06.2019 09:40
The wall street journal reported that walmart stores inc. is planning to lay off 2,300 employees at its sam's club warehouse unit. approximately half of the layoffs will be hourly employees (the wall street journal, january 25-26, 2014). suppose the following data represent the percentage of hourly employees laid off for 15 sam's club stores. 55 56 44 43 44 56 60 62 57 45 36 38 50 69 65 (a) compute the mean and median percentage of hourly employees being laid off at these stores. (b) compute the first and third quartiles. (c) compute the range and interquartile range. (d) compute the variance and standard deviation. (e) do the data contain any outliers? (f) based on the sample data, does it appear that walmart is meeting its goal for reducing the number of hourly employees?
Answers: 1
question
Business, 22.06.2019 14:20
Frugala is when sylvestor puts $2,000 into 10-year state bonds and $3,000 into 5-year aaa-rated bonds in steady hand hardware, inc. he buys the four state bonds at a 5 percent interest rate and the three steady hand bonds at a 6.5 percent rate. sylvestor also buys $1,500 worth of blue chip stocks, and $800 worth of stock in a promising new sportswear company that reinvests its earnings in new growth. 1. (a) what is the maturity for each of the bond groups sylvestor buys? (b) the coupon rate? (c) the par value?
Answers: 3
question
Business, 22.06.2019 15:20
Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.
Answers: 3
You know the right answer?
Astore has 5 years remaining on its lease in a mall. rent is $1,900 per month, 60 payments remain, a...
Questions
Questions on the website: 13722367