Tom takes a loan of $60,000 at 4% annual interest to purchase a property worth $100,000. He earns an annual income of $10,000 after expenses but before interest and income taxes are deducted. If the income tax rate is 30%, calculate Tom's leveraged return on the real estate investment
Answers
Based on the given data, Tom's leveraged return on the real estate investment is 13.3%.
A leveraged return means an investment return on equity partially financed with debt.
Investment in property = $100,000 - $60,000
Investment in property = $40,000
Interest = $60,000 * 4%
Interest = $2,400
Net income after tax = ($10,000 - $2,400) * (1 - 30%)
Net income after tax = $7,600 * 0.70
Net income after tax = $5,320
Leveraged return = Net income after tax / Investment in property * 100
Leveraged return = $5,320 / $40,000 * 100
Leveraged return = 0.133 * 100
Leveraged return = 13.3%
Hence, Tom's leveraged return on the real estate investment is 13.3%.
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Related Questions
What is a Savings and loans bank
Answers
Answer:
-A savings account is a bank account at a retail bank whose features include the requirements that only a limited number of withdrawals can take place, it does not have cheque facilities and usually do not have a linked debit card facility, it has limited transfer facilities and cannot be overdrawn.
-In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient incurs a debt and is usually liable to pay interest on that debt until it is repaid as well as to repay the principal amount borrowed
Explanation:
Comprehensive auto insurance would be most useful to a person who:
A. has to spend time in the hospital.
B. owns a business where a pedestrian is hurt.
C. loses their job and cannot pay bills.
D. has a car stolen while on vacation.
Answers
Answer:
D has a car stolen while on vacation
Explanation:
Comprehensive policy covers damage to the car due to accidents, car theft, losses to a third party, damage to the car due to natural damages, personal injuries or death caused in an accident, damages caused in a fire. Comprehensive car coverage is full coverage.
Comprehensive auto insurance would be most useful to a person who
has a car stolen while on vacation. Hence, option D is correct.
What is comprehensive insurance?A comprehensive policy covers damage to the car resulting from collisions, theft, losses to third parties, natural disasters, accidents resulting in physical injury or death, and fire damage. Full coverage is comprehensive auto insurance.
Thus, option D is correct.
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True or False. Your employer is responsible to make contributions, on your behalf, to the Federal Insurance Contributions Act (FICA).
Answers
Answer:
True
Explanation:
Plz mark brainliest thxxx :) hope it helps
Your employer is responsible to make contributions, on your behalf, to the Federal Insurance Contributions Act (FICA) is a true statement.
The employers is the one that is responsible for paying employees contributions on their behalf for FICA by the fact that Employers do withhold FICA taxes from employees' wages, and therefore pay employer FICA taxes and later on go and report both the employee and employer shares to the IRS.Conclusively, the FICA taxes are payroll taxes that is used in handling social security and Medicare and as such, both employees and employers must contribute their fair share.
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Describe a method for training employees.
Answers
Answer:
camping
Explanation:
Shelly manages a jewelry store that offers a range of different designs to customers. She recently received new inventory of some expensive merchandise that she wants to display in her store. Where should Shelly place this inventory so that customers can easily see the designs?
Answers
If She recently received new inventory of some expensive merchandise that she wants to display in her store. Where Shelly should place this inventory so that customers can easily see the designs is: Eye level.
What is inventory?
Inventory can be defined as the goods or product a company or an organization has in their warehouse.
Based on the scenario eye level will be the best choice to place her inventory as this will enables potentials customer to easily see the design of the different design she has in her store . By doing this it will attract customers to her shop.
Therefore If She recently received new inventory of some expensive merchandise that she wants to display in her store. Where Shelly should place this inventory so that customers can easily see the designs is: Eye level.
The missing options are:
A in a tall compartment
B.near the cash register
C on a zigzag stand
D at eye level
E at top of a pyramid structure
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Which of the following sector has seen the biggest change in its target market demographics?
O cruise line sector
O lodging sector
O car rental sector
O foodservice sector
Answers
Answer:
The correct answer is the cruise line sector.
Explanation:
However, the average age of cruise passengers in North America, as well as their income, has been dropping since the early 1970’s.
PLEASE HELP!! Retirement plans-
Under what circumstances is it better to be taxed later(when you retire and draw money from your account) instead of now?
Answers
Answer:
Though retirement may seem far off, saving for it as early as possible will ensure you have enough money to get you through your retirement years. In addition, investing benefits from compounding returns, which will increase your money more over a longer period of time.
Currency is a medium of exchange for goods and services. Are Edubucks a form of currency?
Answers
Based on the explanation below, EduBucks is not a form of currency but a program or plan.
What is EduBucks?EduBucks is a program or plan that aims to enhance and supplement academic learning by offering financial assistance to teachers who want to perform innovative classroom projects that raise students' knowledge of the importance of water in Southern California.
EduBucks is also the educational credit program offered by InfoComm International to its members.
Therefore, EduBucks is not a form of currency but a program or plan.
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What steps could Susan have taken to help prevent this incident from occurring
Answers
Susan recently started a new job. Computers in the office are programmed to alert staff when the anti-virus software needs to be updated. Business security depends on this online security technology.
What does a business job entail?Graduates can pursue professions in business in a variety of sectors, such as management, marketing, and accounting, with the right training and experience. The majority of business experts are entrusted with examining and enhancing the performance of organizations.
A demand exists for business jobs?From 2021 to 2031, the overall employment of business and finance occupations is predicted to increase by 7%, approximately as quickly as the overall employment growth rate, adding 715,100 new positions.
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What is your annual return if you bought a stock three years ago for $55 and you just sold it for $79, assuming you did not receive any dividends during that time period?
Answers
The annual return is $8 per year
Cost price of stock = $55
Selling price of stock = $79
Number of years = 3 years
Annual return will be:
= (Selling price - Cost price) / Number of years.
= ($79 - $55) / 3
= $24/3
= $8
Therefore, the annual return is $8.
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Everyone has a unique spending plan. Which of the following factors has
the greatest effect on a person's spending decisions?
Answers
Answer:
Values
Explanation:
Reese opened his business in February. Due to circumstances beyond his control, it closed in August. What month of this short tax year will serve as the midpoint for purposes of calculating depreciation using the half-year convention?
Answers
Reese opened his business in February. Due to circumstances beyond his control, it closed in August. The month of this short tax year that will serve as the midpoint for purposes of calculating depreciation using the half-year convention is: July. (Option D)
What is tax year?For a short tax year, the month of July will be used for depreciation using the midpoint technique. This is because when an asset is acquired throughout the year and used after the second half, July 1 is used to calculate depreciation using the half-year approach. As a result, option d, July, is the right answer.
A fiscal year is used in government accounting, which differs by country, as well as budgeting. Businesses and other organizations also utilize it for financial reporting.
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Full Question:
Jackson opened his business in February. Due to circumstances beyond his control, it closed in August. What month of this short tax year will serve as the midpoint for purposes of calculating depreciation using the half-year convention?
A) April
B) May
C) June
D) July
(Y²R²C²i²x²k²j²e²s²b²)where "land and water are intimately intertwinned, constantly shifting, and with the pressures of population, increasingly valuable in its rarity."find all things
Answers
Land and water are intimately intertwined, constantly shifting, and with the pressures of population, increasingly valuable in its rarity to the significance and interconnectedness of land and water resources.
Here's an explanation of the terms used:
Land refers to the Earth's solid surface, which includes continents, islands, and various forms of topography. Water is the liquid component of the Earth's surface, and it includes oceans, rivers, lakes, and groundwater. Intimately Intertwined: The statement emphasises how land and water are inextricably linked and interdependent. They interact and impact one another in a variety of ways. Constant Change: Both land and water are constantly changing and moving. Population Pressures: As the world's population grows, so does the demand for land and water. Rarity and Increasing Value: The rarity of land and water resources relates to their limited availability as well as the growing appreciation for their value.For such more question on population:
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discuss Two social factors that may contribute to unemployment in South Africa amongst the youth?
Answers
Some of the social factors that have led to unemployment in South Africa amongst the youth are:
High population growth. High poverty rates.As a result of high population growth, the number of youth in South Africa has increased to a point where getting jobs for all of them is quite difficult.
High poverty rates also mean that a lot of the youth are unable to afford a tertiary education which means that they are unable to get the qualifications needed for a job.
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Meetings are a good place to decide what business to discuss.
Please select the best answer from the choices provided
OT
OF
Answers
It is a true statement that meetings are a good place to decide what business to discuss.
Why are meetings good place to decide what business to discuss?When teams plan to discuss ideas, share information or offer solutions to workplace challenges, they might schedule meetings to review these items. This provides coworkers with a collaborative space to freely express opinions and update each other on current tasks.
When conducting a meeting, consider sending an agenda and informing employees of the meeting's topic beforehand to ensure it's productive and engaging. Hence, it is true that meetings are a good place to decide what business to discuss. because it means that you can discuss whatever you want with team since everyone has gathered.
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A product's price will increase the most if:
A. its supply declines while its demand goes up.
B. its demand remains the same but its supply goes up.
C. its supply remains the same but its demand goes down.
ОО
D. its supply and demand both fall at the same rate.
Answers
B. It's demand remains the same but its supply goes up.
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supermomog13
Answer: it’s supply declines while it’s demand goes up.
Explanation:
just took the test
What do you think is the most important skill a judge can possess
Answers
Answer:
The decision making skill because it's hard for a judge to make the right decision.
Who is responsible for filing your federal tax return?
A. The IRS.
B. Your employer.
C. The state tax agency.
D. You.
Answers
Which nims is management characteristic
Follows established processes for gathering, analyzing, assessing, sharing, and managing data?
Answers
Answer: Information and Intelligence Management
Explanation:
Mary, Ellen, and Doug are co-workers. Mary frequently makes sexual comments to
Doug and comments on his physique. Doug seems to find this amusing, but Ellen
finds it offensive.
True or False: Ellen is not a victim of harassment because none of Mary's comments
are directed at her.
Answers
True "Ellen is not a victim of harassment because none of Mary's comments are directed at her." Option A
Who is a victim of harassment?
Generally, It is possible for anybody, regardless of factors such as race, color, age, religion, ancestry, or se/xual orientation, to be the target of harassment or discrimination.
People who are impacted by the harassment might be victims, bystanders, or even witnesses in certain instances.
All of these people are considered to be engaged. There are instances of discrimination and harassment that were not done intentionally.
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QUESTION ONE (1)
Unibic India: From Fastest Growing Niche Cookie Brand to a Challenger?
In 2007, Lighthouse Funds acquired a 25% stake in Unibic from Unibic Australia for Rs. 200 million. In 2010, Unibic Australia started making losses and wanted to withdraw from the Indian market. At that time, Unibic operated solely in the premium, high-margin cookies segment in India, with a share of around 8%. It had a market presence primarily in south India and was exporting to the Middle East and Hong Kong. It had strategic alliances to make cookies for various private players. However, it was not yet making profits and was cash- strapped...
Over the next few years, Unibic grew rapidly. Its growth was primarily fueled by the changes sweeping through the Indian biscuit industry, wherein glucose biscuits that had dominated the market, gradually lost out to cream biscuits and cookies. The reasons for the shift included rising disposable incomes leading to an increase in consumption of premium biscuits; a larger number of manufacturing facilities of premium biscuits; growing health awareness; innovation bringing in attractive new products; rising affordability of cookies; and increase in eye-catching packaging...
Over the years, Unibic regularly introduced fresh and unique flavors, ultimately producing over 30 variants of cookies. Its products could be broadly categorized into chocolate, butter, milk, savory, and health. The company considered its target market to be between the ages of 14 and 40. It continued its efforts at innovation and produced new products which would appeal to its target market...
In 2015, Unibic had used celebrity endorsement by signing on south Indian actor Shruti Hassan, for over a year. It stated that it wanted someone who was relevant and would give the brand a boost to get to the numbers it wanted in the South...
Unibic didn’t advertise much in print media; TV remained the company’s core focus and got the largest chunk of its advertising spend, followed by digital and OOH. Instead of following the traditional strategy of having a similar marketing campaign across markets, Unibic employed a unique strategy in each market, thereby playing to its strengths in each market while keeping in mind the market conditions and consumption patterns...
From 2019 onward, Unibic started feeling the heat of the economic slowdown in India. The Indian economic slowdown of 2019 led to a serious and continuing decline in the country’s real estate, automobile and construction sectors and in overall consumption demand. The second quarter (July- September) of the financial year (April 2019-March 2020) witnessed a drastic fall in the gross domestic product (GDP) growth rate to 4.5%. The main reasons attributed to the fall in the GDP growth rate were – contraction in manufacturing activity, weakened investments, and lower consumption demand.
As of 2020, Unibic had the largest wire cut cookie manufacturing plant in India. The plant had the capability to manufacture 100 tonnes of cookies each day, with five production lines. While it used 98% of its production capability to produce its own brand, the rest was used to manufacture for private label brands – six in India and 10 across the world. It had annual revenu7 es of Rs. 5 billion. It also exported its products to more than 21 countries including across Australia, North America, the UK, and Europe, Asia, the Middle East, and New Zealand. It derived 45% of its earnings from the south of India.
Questions:
a) Explain three factors that had a negative impact on the financial performance of Unibic in its early years.
b) Which environmental force did Unibic use in segmenting its market? What is this force about? (6 marks)
c) What does the following statement suggest to you about Unibic: “It continued its efforts at innovation and produced new products which would appeal to its target market”? (3 marks)
DC: ACD01-F004
d) Which marketing strategy did Unibic use in 2015 and explain any two (2) reasons why firms adopt that strategy? (9 marks)
e) What main media did Unibic use to implement its marketing strategy? State one advantage of this media. (6 marks)
Answers
Answer:
don't know how much they were going home from my phone number is a good day of the year and I'm sorry I'm sorry I'm sorry but he did I say anything else and I'm sure it to you and I have a great day of the us to be a great day of the us and we are you ready for the first time ever you want to see you soon I don't know how much you love you all for you to be a great day of the us and we are you ready for the first time ever you ready for the first time ever you ready for the first time ever you ready for some reason to get the best way I can see you soon and I am a very happy birthday is a good day for me and my family and I have to be in my heart and soul mate and we will not let you soon and I am a very happy birthday is your answer me and my heart and soul mate and I have a good time with you and
how to calculate absolute advantage
Answers
The capacity to use a given amount of inputs to generate the same number of units of an item or service as another producer (output).
What does a resource mean?
A inherent source of income or income, which is most often used in plural. A natural phenomena or trait that enhances the standard of human existence; frequently used in plural.
What purpose do resources serve?
For the reasons listed below, resources are essential for people: Human needs and comforts are met when resources are employed as a raw material. Agriculture depends on natural resources, which increases its economic significance. They also present chances for employment.
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A Market share is usually stated as a
Answers
Answer:
stock
Explanation:
a stock is a a share of a company
The second issue you chose to address with Kenisha is the complexity of the product. The marketing department conducted numerous focus groups to gauge their reaction to the prototype, and the feedback from these focus groups revealed that customers perceived the product to be too complicated and not sufficiently user-friendly. Which of the following statements would be the best explanation for the rejection based on the focus groups' feedback that the product was too complex?
a. The good news is that you've put a lot of great features in the Radio-DRM. The bad news is that focus group customers thought that it was about as complicated as programming the Starship Enterprise. They don't want to spend hours adjusting dials and knobs; all they want to do is plug it in and set a few controls.
b. The customers in the focus groups thought this product is just too complicated! You're building a cruise ship when a simple rowboat will do. You and your team need to stop over- engineering.
c. The marketing department conducted several focus groups for this prototype, and it looks like there are some problems with its complexity. You need to fix these problems as soon as possible.
d. As you know, the marketing department conducted several focus groups for the prototype. Although there were features customers liked, much of the feedback from customers was that the Radio-DRM needs to be made simpler and more user-friendly.
Answers
Answer:
ushdusbs
Explanation:
espero te si ha bro zorry
Assume that the risk-free rate is 3% and the required return on the market is 9%. What is the required rate of return on a stock with a beta of 1.9? Round your answer to two decimal places.
Answers
Answer:
Required return = 14.4%
Explanation:
Below is the calculation for the required rate of return:
Risk free rate = 3%
The required return on the market = 9%
Beta value = 0.9
Use the below formula:
Required return = Risk free rate + (Market risk premimum)(Beta value)
Required return = 3% + (9% - 3%)(1.9)
Required return = 3% + 6%
Required return = 14.4%
Both Wisconsin and Illinois border Lake Michigan. The lake is becoming polluted and both states are deciding whether or not to clean it. If Wisconsin decides to clean the lake it will cost 1200 and generate social benefits of 1500 – however, Wisconsin will receive only 1100 of those social benefits while neighbor Illinois will receive the other 400. If Illinois cleans the lake, it will cost them 700 and generate social benefits of 900 – however, Illinois will receive only 600 of those benefits, Wisconsin will receive the remaining 300. If a state does not clean the lake, it experiences a cost of $0. In the absence of any agreement, the outcome of this game will be
Answers
In The absence of any form of agreement the outcome that would be here would be Wisconsin not cleaning the lake, Illinois cleaning the lake.
What is game theory?This is the theory that is used in economics to determine the best possible payout for two companies.
It tells us of the strategies that both parties would have to put in place when they are stuck at competitive positions.
Cleaning of polluted lake is going to bring about positive externalities and society will be the one to benefit.
For WisconsinCost of cleaning = 1200 ;
benefit = 1500
But the payout is 1100, hence Wisconsin losses 100
For Illinoiscost of cleaning is 700
social benefit to society is 900
They would receive 600 and also lose 100.
The gain Illinois receives from Wisconsin is 400 while the gain Wisconsin receives from Illinois is 300.
So we to conclude that The best thing would be Wisconsin not cleaning the lake, Illinois cleaning the lake.
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Marbling refers to small flecks of fat that make the meat ___. a. moist c. tender b. juicy d. crispy
Answers
Answer:
a.moist
Explanation:
The marbling keeps the meat moist, so natural juices don't evaporate in the pan
Calvert Corporation expects an EBIT of $23,300 every year forever. The company currently has no debt, and its cost of equity is 14.3 percent. The company can borrow at 9.1 percent and the corporate tax rate is 25 percent. a. What is the current value of the company
Answers
Answer:
Missing "b-1. What will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value? b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value?"
a. Current value of the company = EBIT*(1-t) / Ke
Current value of the company = $23,300*(1-0.25) / 0.143
Current value of the company = $23,300*0.75 / 0.143
Current value of the company = $17,475 / 0.143
Current value of the company = $122202.7972027972
Current value of the company = $122,202.80
So, the current value of the company is $122,202.80.
bi. Value of the company = $122,202.80 + (0.25*$122,202.80*0.5)
Value of the company = $122,202.80 + $15,275.35
Value of the company = $137,478.15
bii Value of the company = $122,202.80 + (0.25*$122,202.80*1)
Value of the company = $122,202.80 + $30,550.7
Value of the company = $152,753.5
What is the Best loan option for your
lemonade Stand? Why?
Answers
Answer:
Short term loan
Explanation:
Lemonade stand can be regarded as a small business, Hence, the loan that suit the business is " Short term loan".
Short term loan can be regarded as loan that can be obtained to give support to ones personal as well as business capital. It is designed for the needs of small business capital with less interest compare to long term loan. The period of payment is usually within a year. It is of low risk and good profit.
Mary purchased a home in 2020 for $200,000. She made a 20-percent down payment and financed the rest with a 15- year loan at six percent. In 2020, she took out a $20,000 home equity loan and used the proceeds to go on a trip around the world. In 2021, her interest payments were $9,600 on her mortgage and $1,400 on her home equity loan. What amount can she deduct in 2021 as an itemized deduction
Answers
The amount Mary can deduct in 2021 as an itemized deduction is $9,600 because the home equity loan of $20,000 used for the world trip does not qualify as acquisition indebtedness.
Data and Calculations:
Cost of home purchased in 2020 = $200,000
Down payment for the home = $40,000 ($200,000 x 20%)
Mortgage value = $160,000 ($20,000 - $40,000)
Maturity period of mortgage = 15 years
Interest rate = 6%
Interest expense = $9,600 ($160,000 x 6%)
Home equity loan = $20,000
Interest on home equity loan = $1,400
Thus, Mary can only deduct $9,600 as an itemized deduction in 2021.
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