You are an employee of university consultants. ltd., and have been given the following assignment. you are to present an investment analysis of a new small residential income producing property for sale to a potential investor. the asking price for the property is $1, 250,000; rents are estimated at $200,000 during the first year and are expected to grow at 3 percent per year thereafter. vacancies and collection losses are expected to be 10 percent of rents. operating expenses will be 35 percent of effective gross income. a 70 percent loan can be obtained at 11 percent interest for 30 years. the property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold. what is the investor's expected before-tax internal rate of return on equity invested (btirr)? what is the first-year debt coverage ratio? what is the terminal capitalization rate? what is the npv using a 14 percent discount rate? what does this mean?

Most angel investors expect a return on investment of question options: 20% to 25% over 5 years. 15% to 20% over 5 years. 75% over 10 years. 100% over 5 years.

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

Post test question number 9 for entering the job market