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What is the basic shortcoming of most ratios and rules of thumb used in commercial real estate investment decision making?
Explain why income property cash flow is not the same as taxable income.
The rate of exchange in effect at December 31, 2011, was 5.9 LCU to $1. What rate of exchange should be used to translate the dividend for the December 31, 2011, financial statements?
What is the primary thing that distinguishes an operating expense from a capital expenditure?
What is the estimated Net Operating Income? Using the selling price, what is the implied first year overall capitalization rate? What is the (effective) gross income multiplier?
Why might a commercial real estate investor borrow to help finance an investment even if she could afford to pay 100 percent cash?
What is the overall capitalization rate? What is the effective gross income multiplier? What is the equity dividend rate (the before-tax return on equity)?
What is the estimated overall cap rate (Ro) using NOI for the first year of operations?
What is estimated effective gross income (EGI) for the first year of operations?
There may be some truth in these CAPM and APT theories, but last year some stocks did much better than these theories predicted, and other stocks did much worse?
Assume your required internal rate of return on similar investments is 11 percent. What is the net present value of this investment opportunity? What is the going-in internal rate of return on this
You buy 100 shares of Tidepool Co. for $40 each and 200 shares of Madfish, Inc., for $15 each. What are the weights in your portfolio?
You bought a share of 6 percent preferred stock for $95.12 last year. The market price for your stock is now $93.80. What is your total return for last year?
What is the most you can pay for the land today if your required rate of return is 15 percent? What is the expected (annualized) return on this investment over the 10-year holding period if you purc
Why is the dividends valuation approach applicable to firms that do not pay periodic (quarterly or annual) dividends?
You want to buy a house for which the owner is asking $625,000. The only problem is that the house is leased to someone else with five years remaining on the lease. However, you like the house and b
A family trust will convey property to you in 15 years. If the property is expected to be worth $50,000 when you receive it, what is the present value of your interest, discounted at 10 percent?
What is the Security Market Line (SML) What information is developed in the Capital Market Line analysis and then carried over and used to help specify the SML?
What is the difference between a historical beta, an adjusted beta, and a fundamental beta? Does it matter which beta is used, and if so, which is best?
You are able to buy an investment for $1,000 that gives you the right to receive $438 in each of the next three years. What is the internal rate of return on this investment?
What is the difference between a diversifiable risk and a nondiversifiable risk? Should stock portfolio managers try to eliminate both types of risk?
Which payment method should Dr. Jackson accept if his required rate of return is 10 percent?
Some real estate industry persons have suggested that it is good to require a title Insurance commitment as evidence of title for rural property, but that it satisfactory to use the less costly abst
Explain how title insurance works. What risks does it cover? Who pays, and when? What common exceptions does it make?
How is this line used to estimate a stock's beta coefficient? Write out and explain the formula that relates total risk, market risk, and diversifiable risk.