Business, 02.12.2021 02:00 cailynrachael

The Shayla Bungalows, a proposed 150-room hotel with a fully equipped restaurant, will cost $5,900,000 to construct. An estimated additional $100,000 will be invested in the business as working capital. Of the total investment, $4,500,000 is to be secured from the Fleet Bank at a rate of 10% interest and the remainder will be equity provided by the owners. The projected occupancy rate is 68% for the year. The owners desire a 15% return on equity after the corporation pays income taxes of 25%. The estimated depreciation expenses for the first year of operation are $100,000. The estimated undistributed expenses, not including income taxes and interest expense, are $805,400. The estimated direct expenses of the rooms department are $20 for each room sold. Consider a year to have 365 days. Q1. What is the required net income?
Q2. What are the estimated annual interest costs?
Q3. What is the estimated EBITDA (Earnings before Interest, Taxes, Depreciation, and
Amortization)?
Q4. What is the average price of a room using the Hubbart Formula, assuming the
contribution from the restaurant department is $0 (Round up to the nearest quarter)?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:10, corcoranrobert1959

Goals that are overly ambitious can discourage employees and decrease motivation, yet the idea of stretch goals is proposed as a way to get people fired up and motivated. as a manager, how might you decide where to draw the line between a “good” stretch goal and a “bad” one that is unrealistic?

Answers: 1

continue

Business, 22.06.2019 00:50, tommyaberman

Suppose that: 1. malaysia requires 1 hour of labor to produce 1 pound of rice and 2 hours of labor to produce 1 pencil; 2. indonesia requires 2 hours of labor to produce 1 pound of rice and 4 hours of labor to produce 1 pencil; 3. each country has 10,000 hours of labor to allocate between the production of rice and pencils; and 4. in autarky, malaysia consumes 5,000 pounds of rice and 2,500 pencils. which country has an absolute advantage in rice production? in pencil production? which country has a comparative advantage in rice production? in pencil production? will trade between the two countries be mutually beneficial?

Answers: 1

continue

Business, 22.06.2019 10:30, darius7967

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.

Answers: 2

continue

Business, 22.06.2019 17:30, neriah30

Fabian got into an accident on his way to work. he had multiple fractures in his leg. his doctor advised strict bed rest for at least three months. fabian is a freelance wildlife photographer who usually works on a contract basis, and this is his primary source of income. before the accident, fabian was planning his finances. which goal of his financial plan would fabian in getting through without pay for the next three months? the goal that requires the creation of a/an would fabian get through the next three months without pay.

Answers: 1

continue

You know the right answer?

The Shayla Bungalows, a proposed 150-room hotel with a fully equipped restaurant, will cost $5,900,0...