You have done research in the market area and found that (1) properties have historically appreciated at an annual rate of 3 percent per year, and rents on similar properties have also increased at 3 percent annually;
(2) maintenance and insurance are currently $1,500 each per year and they have been increasing at a rate of 3 percent per year;
(3) you are in a 26 percent marginal tax rate and plan to occupy the property as your principal residence for at least four years; and the capital gains exclusion would also apply when you sell the property;
(4) selling costs would be 7 percent in the year of sale;
(5) property taxes have generally been about 2 percent of property value each year.
Based on this information you must decide:
a. In order to decide 10% IRR after taxes on your equity should you buy the property or rent it for a four year period of ownership?
b. What if you expect a period of ownership was to change five years would owning or renting if you wanted to earn a 10% IRR after taxes?

What are the forecasted levels of the line of credit and special dividends? (hints: create a column showing the ratios for the current year; then create a new column showing the ratios used in the forecast. also, create a preliminary forecast that doesn’t include any new line of credit or special dividends. identify the financing deficit or surplus in this preliminary forecast and then add a new column that shows the final forecast that includes any new line of credit or special dividend.) now assume that the growth in sales is only 3%. what are the forecasted levels of the line of credit and special dividends?

Asap describe three different expenses associated with restaurants. choose one of these expenses, and discuss how a manager could handle this expense.

John and daphne are saving for their daughter ellen's college education. ellen just turned 10 at (t = 0), and she will be entering college 8 years from now (at t = 8). college tuition and expenses at state u. are currently $14,500 a year, but they are expected to increase at a rate of 3.5% a year. ellen should graduate in 4 years--if she takes longer or wants to go to graduate school, she will be on her own. tuition and other costs will be due at the beginning of each school year (at t = 8, 9, 10, and 11).so far, john and daphne have accumulated $15,000 in their college savings account (at t = 0). their long-run financial plan is to add an additional $5,000 in each of the next 4 years (at t = 1, 2, 3, and 4). then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. they expect their investment account to earn 9%. how large must the annual payments at t = 5, 6, and 7 be to cover ellen's anticipated college costs? a. $1,965.21b. $2,068.64c. $2,177.51d. $2,292.12e. $2,412.76