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Structured Finance


Structured Finance

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Structured Finance

Week X Case Study Assignment

Title That Describes the Intent of Assignment

 

Background

The purpose of this template is to prove guidance on both formatting and progression of ideas when drafting assignments.

 

We begin with the background section.  In this section, please describe:

The asset under review.  This includes type, age, class, location (metropolitan statistical area and submarket/neighborhood).  Also, include key metrics that are useful to consider when your reader is reintroduced to the deal and your new analysis included as part of this memo.

 

As this is a rolling assignment based on reading for each week, you will update the background section weekly throughout this course.  Your background should be specific to the new information provided each week.  For example, Week 3 asks students to apply debt to their scenario analysis.  Use this section to inform the reader on any updates to negotiations and how this update impacted your analysis throughout.  In the case of Week 3, you will want to share that the seller has partnered with a lender and also provide the terms of the debt offered.  Week 4 and beyond will have unique updates to provide.

 

Images can help here as you deem appropriate and as needed as the deal progresses.  Images may include maps, pictures of the property and surrounding location so as to provide context for your reader.  The formatting of your assignments may look something like what is presented herein. However, this formatting template is meant to act as a guide when completing your work for submission at Georgetown, and in your career.   Find opportunities to be creative in a manner that sets up apart from your peers.

 

Our weekly case study assignments will ask you to perform specific analysis so as to arrive at a conclusion for recommendation.  Our expectation is that you use assignments as opportunities to provide more than a summary of deal metrics.  We want to know:

  • What is the analysis telling you? What are your resulting recommendations?
  • It is equally as important to tell us about your perspectives on the deal; what you think and why.

 

Leverage Analysis (title will change with each assignment you submit)

In Week 2, we asked you to perform an unleveraged analysis for three asset class scenarios (Trophy, Class A, Class B).  Week 3 asks to (i) review scenarios; (ii) apply the debt terms that are described in Blackboard to each scenario (iii) determine the type of investor that would be appropriate; (iv) identify the proposed returns that the project would earn.  Week 4 will have novelty as will subsequent assignments.

 

 

 

 

 

Leveraged Trophy Analysis (title will also change with each assignment)

Begin your analysis by providing a description of the respective development scenario and follow with a table that summarizes your findings.  Best to have a simple, precise and clear narrative about what the reader is looking at in the table that follows your description.  Also, helps to briefly explain your understanding of the assumptions that drive this analysis.

 

You will want to provide sufficient narrative such that your instructor(s) can easily identify where you may have made an error conceptually and help you address it immediately.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that allow for a full understanding of your findings in the table above?

 

Leveraged Class A Analysis

Replicate format above based on analysis performed for Class A scenario.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that allow for a full understanding of your findings in the table above?

 

 

 

 

 

 

 

 

 

 

Leveraged Class B Analysis

Replicate format above based on analysis performed for Class B scenario.

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that allow for a full understanding of your findings in the table above?

 

Sensitivity Analysis

Continuing with week 3 as an example, students are also tasked with presenting sensitivity analysis associated with this project.  Intent of these sensitivities is to determine a range of anticipated return to investors.  We have asked you to run the following sensitives below:

 

Rent Sensitivity Analysis

In support of your rent sensitivity analysis, your table will need to include a range of rental rates that are less than and greater than the projected rate that you concluded to earlier in this course (a range of at least 10% both positively and negatively).  Projected cash flow through to disposition will change in conjunction with corresponding change in rent, as will disposition values, net proceeds, and ultimately IRR to the proposed investor.  Ensure that your table has as sufficient range of rents to adequately capture the various scenarios we have asked you to run previously (Trophy rents; Class A rents; Class B rents).  Provide notes as necessary that offer helpful guidance to the reader regarding your assumptions and the associated risks therein.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that allow for a full understanding of your findings in the table above?

 

 

 

 

Construction Cost Sensitivity

As above, construction costs will increase based on the various scenarios we have asked you to run (Trophy, Class A, Class B).  The range of construction costs will impact the level of equity that your proposed investor will need to fund.  Cash flows for each scenario will reflect rental rates per scenario type (Trophy rents…) and will ultimately impact IRR, which your table should show.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that will allow for a full understanding of your findings in the table above?

 

Disposition Cap Rate Sensitivity

As above, cap rates will be either higher or lower depending on the scenario. Buyers will pay more for better product, and less as the asset quality declines (no surprise then that Trophy will earn a lower cap rate than Class A, and Class B will earn a higher cap rate than Class A). Thus, disposition values will have a range based on range of cap rate, as will IRR.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that will allow for a full understanding of your findings in the table above?

 

 

Recommendations

Take a moment to reflect on your analysis above and insights that your analysis provided that should be reinforced.  This is the ‘therefore’ section, and you are using language to motivate your firm’s leadership without also coming across as overbearing.  As an example for Week 3, it may be helpful to have a table that reflects the best option based on the sensitivities you generated.  Ultimately each week will require new insight based on leadership’s needs, so best to be flexible with your organization based on what you learned from performed analysis.

 

Our expectation is that you use assignments as opportunities to provide more than a summary of key metrics and also use as opportunity to concisely discuss impact on projected returns to investors based on new information provide each week.

 

What is the analysis telling you about risk? What are your resulting recommendations that are both realistic and can be achievable economically in the context of your investor’s requirements about return rates?  The purpose is to balance risk with your own solutions to continue deal flow and successfully create value.

 

 

***

 

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Buy your research paper-Financial Analysis.


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Financial Analysis.

Review the most recent annual reports for each of the two companies to gain an understanding of each company’s products and services, the markets they serve, and their financial performance.

Complete a financial analysis to determine which of the two companies is the better performing by looking at the most recent full-year financial reports.

A good performing company is one whose returns are better than the industry average over a long period of time. Look at a metrics such as return on invested capital, free cash flow, sales growth, profit growth, and return on assets).

A company with superior financial performance, generally has consistent annual revenue and profit growth; high profit margins; high sales per employee; high sales per square foot of floor space (retail or manufacturing); high inventory turns, and a strong balance sheet.

Good financial performance is the result a good business strategy that is executed well and often includes: investments in appropriate technology; visionary leadership; talented and dedicated employees; a customer focus; having and maintaining a competitive advantage, and a strong focus on strategic goals.

Based on your conclusions from the facts as presented, explain why the better company achieves better performance than its competitor.  What does the company do well to achieve the superior financial performance?  What can they improve on to even do better?

 

EXAMPLE OF FINANCIAL ANALYSIS:

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Financial Comparisons
Metric Company 1 Company 2
Profit Margin 4.39% 1.45%
Return on Assets 8.57% 6.22%
Return on Equity 23.0% 36.6%
Debt to Equity 0.71 2.11
Return on Invested Capital 18.6% 21.7%
Earnings Growth (3yr. avg.) -1.7% +15.4%
Revenue Growth (3 yr. avg.) 4.2% 2.7%
Inventory Turns 8.3 15.0
Sales/Square Foot $437 161
Sales/Employee $218,400 $277,328
Net Income/Employee $6,876 $7,243
Free Cash Flow $7.4 bn $0.86 bn

 

Company 2 has overall better financial performance as its Return on Invested Capital is 21.7% compared to 18.6% for Company 1. If you were a shareholder, your return potential would be better with Company 2.  Company 2 also does a better job in managing its inventory and has more productive employees (sales per employee). Company 1 has better asset utilization with higher sales per square foot. Company 2 has more productive employees with higher sales and net income per employee.

Company 1 does better in profit margins and operating margins and sales per square foot, and generates more free cash flow.

Company 2 is faster growing in earnings (15.4% per year), and does a much better job with inventory turns (15.0 vs. 8.3). If Company 2 could lower their floor space or increase their sales with the same floor space, they would improve their sales per square foot and thus improve their profit margins. This would also help generate more free cash flow as it would reduce the investment required in facilities.

 

 

  1. The APA writing style format uses 12 pt. font size, Times New Roman type style, double-spacing, and requires a title page, title headings for sections of the paper, citation of references used in the body of the paper, and a separate references page at the end of the paper.

 

  1. The length for papers is to be between five and seven pages (excluding title page, abstract, and reference page). Papers generally shorter than this do not adequately cover the topic.

 

  1. An abstract is required for all papers, and should include statement of problem or issues that the paper addresses; the method of analysis; the results or findings; and main conclusions and recommendations. Abstracts should be brief but complete.
  2. All papers must include a minimum of four (4) appropriate and credible outside references. The course textbook can be one of the references if it is used. Sources need to be credible and copying from sources is not permitted. If material is quoted directly from a reference source, the source must be cited in the body of the paper as well as on the reference page.

 

  1. Examples used to illustrate points in papers should not be taken from the course textbook or from any previously ones used in class or from other class assignments.

 

  1. All papers should have section headings for each of the major sections of the paper, and include as a minimum of an introduction (explaining the purpose of the paper and how the topic will be covered); an analysis section or sections, detailing the analysis of the case, the topic, or the problem; a conclusions section where the conclusions are made based on the analysis; and a summary section, where the key points of the paper and any conclusions drawn in the paper are summarized.
  2. Make sure that the hyperlinks are removed from any web sources on the reference page and in the body of the paper, and that the papers are spell and grammar checked before submitting.

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Buy Research Paper-Finance 3504 Intermediate Corporate Finance


Buy Research Paper-Finance 3504 Intermediate Corporate Finance

Finance 3504 Intermediate Corporate Finance © 2017 Pavel G. Savor
INTERMEDIATE CORPORATE FINANCE (FIN 3504)
Spring 2017
Professor Pavel Savor
Alliance Concrete Case Instructions and Questions
You can buy the case at: http://store.darden.virginia.edu/alliance-concrete (choose the “PDF Download” option).
You should prepare a written case report, with a page limit of five pages. Please ensure you answer the following questions in your report.
1. What is your best estimate of the 2006 financial statements? As a starting point, you can assume that Alliance will make the expected $3 million dividend payment to National. Hence, the balance sheet will be balanced by adjusting the amount of the bank loan. This implies a possible renegotiation with the bank.
Once this forecast is completed, consider the effects on the borrowing amount from changing the dividend and/or capital expenditure choices.
Please note that this question requires you to do a financial projection of Alliance Concrete’s 2006 financial statements (using Excel or similar spreadsheet software). I will ask you about your projections.
2. Alliance faces the following options:
a. make the principal repayment to the bank
b. make the capital investments proposed by the plant manager
c. make the dividend payment to National
Most likely, it cannot do all three. What is your recommendation about how to proceed (provide the reasoning underpinning your recommendation)?
3. Assume you chose to renegotiate with the bank. How would you approach the bank, and what arguments would you put forward?
4. Assume you chose to skip the dividend. How would you approach National, and what arguments would you put forward?

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Urgent paper helpMCO 201 Week 2 Assignment 1


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MCO 201 Week 2 Assignment 1

Week of 17th January 2017

Hand in date week of 31st January latest.

This assignment should be handed in hard copy. There is no need to use turnitin for this assignment. This assignment covers the materials in the slides for the first two weeks.

1          Calculate the Net present value of the following cash flows at 7% p.a.:-

Time (years) Cash Flow
0 -250,000
1 100,000
2 120,000
3 130,000

 

2          What is the price of a three year bond with a coupon of 5% when yields (interest rates) are 3%?

3          You hold a four year bond with a price of 97.6% and a coupon of 4%. What is the Yield to Maturity of the bond?

4          What is the EAR if you have a credit card that charges 11% per annum with monthly compounding?

5          You have a four year bond with a coupon of 8% and interest rates are 9%. Show how the gross redemption proceeds can be made immune from a 1% shift in interest rates with calculations to demonstrate what you have stated.

6          How useful are financial statements in planning your company’s future financial needs? When are they a good starting point and when are they less useful?

End of the assignment

 

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Capstone Project: Assignment help-Finance:


Capstone Project

Assignment help- Finance

Report Structure

It is a capstone project. That means it should implements all tools that were covered in all academic courses such as Accounting, Finance, Strategy, Business Performance, and Operations Management. The report is suggested to be in the following structure:

  • Executive Summary
  • Outline “table of contents”
  • Analysis and Discussion
  • Conclusion and Recommendation

Analysis and Discussion

Here, it should cover the following:

  1. External Analysis
    1. Macro Environment
    2. Market; “size dynamics…”
    3. Customers; “segments, size, expectation, bargaining power…”
    4. Suppliers
    5. Competitors; “size, position, financial performance…”
    6. Industry analysis tools such as five forces, PESTEL
  2. Internal Analysis
    1. What does the startup provide?
    2. What are the key functions requirements? “Marketing, finance, Human Resources, and processes…”
    3. What are the key resources required?
  3. Assessment of available Strategic Options
    1. Propose Strategy # 1Identify and discuss Required Business Model Evaluate Competitive advantage
    2. Propose Strategy # 1Identify and discuss Required Business Model Evaluate Competitive advantage
    3. Assess Potential Financial Statements of all proposals

Recommendations and Conclusion

It should contain the following:

  1. Most Valuable B.M and why
  2. List of action with time plan
  3. Financial forecasts (P&L, Cash flow, NPV, and ROI)
  4. KPI’s that will be implemented to monitor the performance and ensure meeting targets
  5. Potential risks and corresponding mitigation plans.

 

Assignment help- Finance

Help-BBA 3310 Unit VI Assignment


Help-BBA 3310 Unit VI Assignment

BBA 3310 Unit VI Assignment

Instructions: Enter all answers directly in this worksheet. When finished select Save As, and save this document using your last name and student ID as the file name. Upload the data sheet to Blackboard as a .doc, .docx or .rtf file when you are finished.

 

Question 1: (10 points). (Bond valuation) Calculate the value of a bond that matures in 12 years and has $1,000 par value. The annual coupon interest rate is 9 percent and the market’s required yield to maturity on a comparable-risk bond is 12 percent. Round to the nearest cent.

 

 

The value of the bond is

 

Question 2: (10 points). (Bond valuation) Enterprise, Inc. bonds have an annual coupon rate of 11 percent. The interest is paid semiannually and the bonds mature in 9 years. Their par value is $1,000. If the market’s required yield to maturity on a comparable-risk bond is 14 percent, what is the value of the bond? What is its value if the interest is paid annually and semiannually? (Round to the nearest cent.)

 

a. The value of the Enterprise bonds if the interest is paid semiannually is $
b. The value of the Enterprise bonds if the interest is paid annually is $

 

Question 3: (10 points). (Yield to maturity) The market price is $750 for a 20-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond’s yield to maturity? (Round to two decimal places.)

 

The bond’s yield to maturity is %

 

Question 4: (10 points). (Yield to maturity) A bond’s market price is $950. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond’s yield to maturity? What happens to the bond’s yield to maturity if the bond matures in 28 years? What if it matures in 7 years? (Round to two decimal places.)

 

The bond’s yield to maturity if it matures in 14 years is %
The bond’s yield to maturity if it matures in 28 years is %
The bond’s yield to maturity if it matures in 7 years is %

 

Question 5: (15 points). (Bond valuation relationships) Arizona Public Utilities issued a bond that pays $70 in interest, with a $1,000 par value and matures in 25 years. The markers required yield to maturity on a comparable-risk bond is 8 percent. (Round to the nearest cent.) For questions with two answer options (e.g. increase/decrease) choose the best answer and write it in the answer block.

 

 

Question Answer
a. What is the value of the bond if the markers required yield to maturity on a comparable-risk bond is 8 percent? $
b. What is the value of the bond if the markers required yield to maturity on a comparable-risk bond increases to 11 percent? $
c. What is the value of the bond if the market’s required yield to maturity on a comparable-risk bond decreases to 7 percent?

 

$
d. The change in the value of a bond caused by changing interest rates is called interest-rate risk. Based on the answer: in parts b and c, a decrease in interest rates (the yield to maturity) will cause the value of a bond to (increase/decrease):
By contrast in interest rates will cause the value to (increase/decrease):
Also, based on the answers in part b, if the yield to maturity (current interest rate) equals the coupon interest rate, the bond will sell at (par/face value):
exceeds the bond’s coupon rate, the bond will sell at a (discount/premium):
and is less than the bond’s coupon rate, the bond will sell at a (discount/premium):
e. Assume the bond matures in 5 years instead of 25 years, what is the value of the bond if the yield to maturity on a comparable-risk bond is 8 percent? $ 960.07 Assume the bond matures in 5 years instead of 25 years, what is the value of the bond if the yield to maturity on a comparable-risk bond is 11 percent? $
f. Assume the bond matures in 5 years instead of 25 years, what is the value of the bond if the yield to maturity on a comparable-risk bond is 7 percent? $
g. From the findings in part e, we can conclude that a bondholder owning a long-term bond is exposed to (more/less) interest-rate risk than one owning a short-term bond.

 

 

Question 6: (5 points). (Measuring growth) If Pepperdine, Inc.’s return on equity is 14 percent and the management plans to retain 55 percent of earnings for investment purposes, what will be the firm’s growth rate? (Round to two decimal places.)

 

 

The firm’s growth rate will be 7.70 %

 

Question 7: (10 points). (Common stock valuation) The common stock of NCP paid $1.29 in dividends last year. Dividends are expected to grow at an annual rate of 6.00 percent for an indefinite number of years. (Round to the nearest cent.)

 

a. If your required rate of return is 8.70 percent, the value of the stock for you is: $
b. You (should/should not) make the investment if your expected value of the stock is (greater/less) than the current market price because the stock would be undervalued.

 

Question 8: (10 points). (Measuring growth) Given that a firm’s return on equity is 22 percent and management plans to retain 37 percent of earnings for investment purposes, what will be the firm’s growth rate? If the firm decides to increase its retention rate, what will happen to the value of its common stock? (Round to two decimal places.)

 

a. The firm’s growth rate will be: 8.14%
b. If the firm decides to increase its retention ratio, what will happen to the value of its common stock? An increase in the retention rate will (increase/decrease) the rate of growth in dividends, which in turn will (increase/decrease) the value of the common stock.

 

Question 9: (10 points). (Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions:

 

  • the investor’s required rate of return is 13 percent,
  • the expected level of earnings at the end of this year (E1) is $8,
  • the firm follows a policy of retaining 40 percent of its earnings,
  • the return on equity (ROE) is 15 percent, and
  • similar shares of stock sell at multiples of 8.571 times earnings per share.

 

Now show that you get the same answer using the discounted dividend model. (Round to the nearest cent.)

 

 

a. The stock price using the P/E ratio valuation method is: $
b. The stock price using the dividend discount model is: $

 

Question 10: (10 points) (Preferred stock valuation) Calculate the value of a preferred stock that pays a dividend of $8.00 per share when the market’s required yield on similar shares is 13 percent. (Round to the nearest cent.)

 

a. The value of the preferred stock is $ Per share

Help-BBA 3310 Unit VI Assignment

Portfolio Management


Portfolio Management

1 Faculty of Business and Law 2016 – 2017

Module No: 352FIN MODULE TITLE: Portfolio Management

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Coursework [Contributes 25% to total module mark]

Complete the following task individually using a report format. You should not use more than 2500 words. Using at least two shares from FTSE 100 components, create an investment portfolio for a risk-averse investor, and another portfolio for an investor with relatively high risk tolerance. Outline in a report the choice you made in creating these portfolios, and discuss the underlying portfolio theory. Compare and contrast the two portfolios in terms of return and risk. Choose appropriate portfolio performance measures to evaluate the two portfolios. You may assume that all investors and investments are based in the UK. You are required to use the year January 2015 – December 2015 for your daily data. Submission by 23.55 on date: 05/12/16 This assignment must be submitted, with a coursework cover sheet, to Turnitin via the module web (CUOnline, following the link provided there) by 23.55 on 5th December 2016. Students MUST keep copies (electronic file also) of their assignment. The electronic version of your assignment may be used to enable checks to be made using anti-plagiarism software and approved plagiarism checking websites. Word Length (2500 words at maximum). Any penalties for not complying with word limits will be in accordance with University and Faculty policy. Word count should be shown on the cover sheet. The tables, graphs, and reference will not be part of the word count. Assessment Criteria The marking criteria are indicative to the elements that one might wish to address in your report.1) Selection of assets & portfolio allocation must be clearly stated and justified. 2) Modern portfolio theory and relevant concepts should be applied, discussed and explained. 3) Explanation of the criteria used to make such a set of choices should be clearly discussed and their limitations considered. 4) Any limitations of the approach you have used to create your portfolio should be considered. Marks will be given for clear explanations of each step and element of your decisions in your report. Justification for each assumption and decision is encouraged. The calculations or spreadsheet should be appended to the back of the document. This does not count in the word count. You should look to demonstrate your understanding of the concept of portfolio construction, risk aversion and associated concepts along with the limitations of such an approach. Return of Marked Work Marked work available on Turnitin. You can expect to have marked work returned to you within 2 weeks after the submission date. 2 PLAGIARISM WARNING! – Assignments should not be copied in part or in whole from any other source, except for any marked up quotations, that clearly distinguish what has been quoted from your own work. All references used must be given, and the specific page number used should also be given for any direct quotations, which should be in inverted commas. Students found copying from the internet or other sources directly will get zero marks and may be excluded from the university. Note: Please make sure that your ID number and the module number appear on the actual coursework assignment as well as on the cover sheet that you attach to it. For large modules with multiple seminars, your Seminar Group or Tutor’s name must be clearly shown, to ensure that your assignment goes to the correct person for marking. (Put the class day and time if you cannot remember tutor’s name).

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Investment appraisal: Investment value of an office building as at December 2015.


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Investment appraisal: Investment value of an office building as at December 2015.

Word guide 2,000 words (excluding figures, tables and appendices)

The task is to calculate the investment value of an office building as at December 2015. There are three tenancies:

 The 3,000ft2 ground floor is let at £35,000 per annum. on a lease expiring in June 2017, following which there is expected to be a 12-month void. Outgoings will be incurred during the void period at the rate of £6/ft2 plus, after three months, property tax of £9/ft2. It is estimated that £50/ft2 will need to be spent on refurbishment, before achieving a re-letting subject to a 12-month rent-free period. The current market rent is considered to be £40,000 per annum, expected to increase to approximately £50,000 per annum by the June 2017 re-letting date.

 The lease of the first floor (4,000ft2) at £40,000 per annum expires in December 2019. Assume six months void, six months rent-free; void outgoings £6/ft2; property tax £9/ft2 after three months; £40/ft2 refurbishment cost. The current market rent of £60,000 per annum is expected to increase to £69,000 per annum by the June 2020 re-letting date.  The lease of the second to fifth floors (16,000ft2) at £190,000 per annum runs until

September 2023, subject to a rent review in September 2018. The current market rent is estimated to be £240,000 per annum, expected to increase to £262,000 per annum by September 2018 when a 5% market rent discount is expected to be applicable at rent review.

A five-year holding period is assumed. A 10% discount rate and an exit yield of 7.25% are considered appropriate.

 

Your valuation should take the form of a monthly discounted cash flow. Please explain the inputs into the cash flow and any assumptions that you make.

ASSESSMENT CRITERIA

Excellent (70-

100)

Good (60-69)

Satisfactory

(50-59)

Poor (40-49)

Fail (0-39)

1st 2i 2ii 3 F

The following aspects will be assessed:

– The ability to identify appropriate material and data for inclusion in the report

– Accurate analysis of quantitative information provided.

– Quality of discussion of the material presented in the report.

– Understanding the implication of any quantitative analysis and other findings

– Presentation of material – in particular the layout of

 

Discipline: real estate investment appraisal

Project has two elements
Group appraisal/valuation exercise
Individual multiple choice test
Again, in the role of a property advisor, instructions from a pension fund client considering the purchase of an office property in Reading
Valona House in Reading town centre is a hypothetical property
Partially let with potential for refurbishment

Review the market for offices: look at a few agents’ reports and try and get a handle on general national and regional office market state, prospects and supply, demand and take up locally.
Take a view on where Reading fits into the national and regional context and the different prospects for prime and secondary property in the locality over the next few years.

b, Think about cost and value implications of various courses of action

c. How much would it cost to refurbish the property now and how much are tender prices expected to increase between now and the end of the refurbishment period (assume the tender price is paid at the end of the building work)?
BCIS on-line provides both – look for figures for “rehabilitation” and look for the document providing forecasts for all sorts of items including tender prices.
d. Find the rental value (Market Rent) of the improved property in today’s market based on comparable evidence of similar property lettings in Reading using sources such as CoStar and EGi, agent’s websites, etc.
You need to show your analysis and discuss fully in the report exactly what thought process you went through in interpreting the evidence to get to the rental valuation figure.
e)Rental growth performance
Statistical analysis
Real and nominal rental growth performance
Reference your data sources

f) Rental growth forecast: how will rents change over the next few years up to the date you decide to sell – I suspect that means over the next four years – you can obtain national figures from the IPF (I’ll provide these). You need to work out what they tell you and decide from your market analysis if Reading will behave differently.

Combining (d) and (f) will give you the projected market rent for the refurbished property at the date you decide to sell it.

g) Yield analysis
The capital value of the refurbished property at the sale date is a function of the rental value at that time capitalised at the capitalisation rate at that time.
Assume that the capitalisation rate is an average of the long term rate from the past. The past figures will be given to you so it is a statistical exercise to work it out.

h) Apply the information to an appraisal model
Set out the quarterly cash flow from the building while the leases are still in place.
Place the sale price after refurbishment in the cash flow and place the refurbishment cost in the cash flow.
Then discount the cash flow at the target rate of return, work out the NPV and IRR of the cash flow assuming it is bought for the asking price.
This will enable you to advise whether to purchase or not and also advise on the price to be offered.

i) In the cash flow you can assume that you let the property for the market rent as soon as the refurbishment is finished.
However, this task asks for a discussion of the possible alternative outcomes – lease terms, incentives, etc.
Read the BPF IPD Annual Lease Review and the RICS Red Book UKGN6 Analysis of commercial lease transactions

Maths: Compounding (1 + i)n and Discounting (1 + i)-n
Maths: Converting annual discount rates to quarterly discount rates (1 + i)¼ – 1 so you can discount each quarters cash flow
Valuation – can you value a property let at its market rent?
Identifying Net Present Values and Internal Rates of Return?
Interpreting Net Present Values and Internal Rates of Return?
Computing – setting up cash flows on the spreadsheet – using functions for statistics and goal seek for IRR

 

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global finance


Work type: Presentation or speech
Academic level: College (1-2 years: Freshmen, Sophomore)
Subject or discipline: International Relations
Title: global finance
Number of sources: 5
Provide digital sources used: No
Paper format: MLA
# of pages: 5
Spacing: Double spaced
# of words: 1375
# of slides: ppt icon 0
# of charts: 0
Paper details:
Your assignment is to choose a current world problem that you think is
important and meaningful to the international and global culture.
Something that affects people all around the world and is changing, or has
the possibility of changing, the world as we know it. It can be anything as
long as it meets the following criteria:
1. Is it a problem that affects more than one country or region in the
world?
2. Is it something that is happening currently? (it could have started a
long time ago but it must still be a global issue)
3. Is there enough information to do a major research project on the
topic?
4. It cannot be anything to do with the Fundamentalism/ SelfDetermination
in regards to ISIS (we will have already talked about
that extensively in class)

1. In addition to the PowerPoint you will complete an essay explaining
your solution to the global issues you chose to research.
2. Your paper should contain, but is not limited to:
 4-5 pages, double spaced, 12pt font, Times New Roman
 An introduction with a thesis and solution to your issue
 Body paragraphs with your opinions and supporting evidence
to back up your thesis
 A conclusion tying all of your paper together

 Quotes and support from at least 5 outside sources
 3 of the 5 sources must be from the internet, books,
newspapers or magazines
 A bibliography using the MLA citation style

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