Tutor profile: Omar M.
Subject: Microsoft Excel
What is the excel shortcut for special pasting into a cell?
The corresponding shortcut is Alt+H+V+S.
Subject: Real Estate
If a property generates net operating income of $100,000 a year and is valued at a 10% cap rate, what is it's value?
The property value is equal to the yearly net operating income divided by the cap rate, as such the value of this subject property would be $1,000,000.
If a company's capital structure uses a 50/50 combination of debt and equity financing and the pre-tax cost of debt is 6%, the cost of equity is 9% and the tax rate is 30%; what is the company's weighted average cost of capital?
The after tax cost of debt is 6% multiplied by 1 minus the tax rate, which yields 4.2%. Then by multiplying the weights of the debt and equity you get 6.6% as the overall cost of capital.