Suppose we have the following real estate speculation scenar…
Suppose we have the following real estate speculation scenario for a 1 year investment: Purchase price of house: $150,000 Equity: $120,000 Debt: $30,000 @10% interest Interest Payments: $3,000 Suppose after 1 year the real estate speculator is able to sell the house for $50,000 during a time of decreasing real estate asset prices. What is the rate of return?
Read DetailsSuppose we have the following information for 2010: Potentia…
Suppose we have the following information for 2010: Potential output: $20 trillion Actual output: $19 trillion Actual Deficit: $ 200 billion Tax Rate: 15% What is the structural deficit in 2010? What could be causing the structural deficit?
Read DetailsSuppose we have the following real estate speculation scenar…
Suppose we have the following real estate speculation scenario for a 1 year investment: Purchase price of house: $200,000 Equity: $190,000 Debt: $10,000 @10% interest Interest Payments: $1,000 What is the leverage ratio in this scenario?
Read Details