contestada

An investment property's return on equity ratio is 15% and the owner has $85,000 of equity.
What is the property cash flow?

a) $10,200 b) $12,750 c) $566,667 d) $708,333

Respuesta :

Answer:

Cash flow will be $12750

So option (B) will be correct answer

Explanation:

We have given return on equity = 15 % = 0.15

Total equity = $85000

We have to find the cash flow

Equity is given by

[tex]equity=\frac{cash\ flow}{return\ on\ equity}[/tex]

So [tex]85000=\frac{cash\ flow}{0.15}[/tex]

[tex]cash\ flow=85000\times 0.15=12750[/tex]

So cash flow will be equal to $12750

So option (B) will be correct option

Otras preguntas