Business, 18.08.2021 02:10 teamroper35
Mr. Agirich has the opportunity to purchase some farm land at $3,000/acre. He expects that real land prices will increase at 5% per year and inflation will be 2%. His pretax risk adjusted discount rate is 14%. Assume that the land will be sold in 10 years and the marginal tax rate is 23%. The effective interest rate on land loans is 6%.
Required:
a. Calculate the after-tax risk adjusted discount rate.
b. Calculate the real price of land in 20 years.
Answers: 3
Another question on Business
Business, 22.06.2019 10:10
Rats that received electric shocks were unlikely to develop ulcers if the
Answers: 1
Business, 22.06.2019 16:30
On april 1, the cash account balance was $46,220. during april, cash receipts totaled $248,600 and the april 30 balance was $56,770. determine the cash payments made during april.
Answers: 1
Business, 22.06.2019 18:30
Health insurance protects you if you experience any of the following except: a: if you have to be hospitalized b: if you damage someone's property c: if you need to visit a clinic d: if you can't work because of illness
Answers: 2
Business, 22.06.2019 21:20
Which of the following best describes the advantage of living in a suburban area? a. suburbs give people access to city jobs along with more living space. b. suburbs give people easy access to cultural attractions and high-paying jobs. c. suburbs have the widest availability of low-cost housing of any living area. d. suburbs have the lowest population density of any living area.
Answers: 1
You know the right answer?
Mr. Agirich has the opportunity to purchase some farm land at $3,000/acre. He expects that real land...
Questions
Mathematics, 31.08.2021 23:10
Mathematics, 31.08.2021 23:10
Mathematics, 31.08.2021 23:10
Mathematics, 31.08.2021 23:10
Chemistry, 31.08.2021 23:10
English, 31.08.2021 23:10
Health, 31.08.2021 23:10
