Homework Answers
Value of property based on in-place rent
Value = (in-place rent - operating expenses) / cap rate
Value = ($7,200,000 - $2,500,000) / 4%
Value = $117,500,000.
Value of property based on market rent
Value = (market rent - operating expenses) / cap rate
Value = ($7,000,000 - $2,500,000) / 4%
Value = $112,500,000.
Excess of value based on in-place rent over value based on market rent = $117,500,000 - $112,500,000
Excess = $5,000,000.
The buyer would overpay by $5 million.
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Question
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balance sheet. Be sure to calculate balances at the bottom of the
sheet. These ending balances will link to the Year 1 balance
sheet.)
Part A Adomain is a start-up company that started last year, in Year 0....
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freelance writer. In January 2018, Janice opened her own office
located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called
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She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social
Security number is 123-45-6789. Janice’s parents continue to
provide health insurance for her under their policy. Janice wants
to contribute to the Presidential Election...
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Question 9
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