Exam (elaborations)
FSU REE4204 Exam 3 Sirmans EXAM PREP ALREADY PASSED
- Course
- Institution
FSU REE4204 Exam 3 Sirmans EXAM PREP ALREADY PASSED
[Show more]
Seller
Follow
Content preview
FSU REE4204 Exam 3 Sirmans EXAM PREPALREADY PASSED
The use of debit in income-producing real estate can alter the value of:
a. amount risk of the cash flow to bankers
b. amount of cash flows to equity investors
c. risk of cash flows to equity investors
d. b and c
e. a and b - =D
The following is a NOT a proper list of potential commercial properties:
a. hotels, motels, urban office buildings
b. suburban office buildings, shopping malls, strip centers
c. warehouses, mini-warehouses, theme parks
d. restaurants, fast-food facilities, nursing centers
e. hospitals, apartment complexes, casinos, public schools - =E
A key non-real estate source of property cash flow is:
a. tax shelter
b. managerial talent
c. use of equity financing
d. debt financing
e. all the above - =B
Financial leverage is:
, a. the left side of the balance sheet
b. the use of debt to finance real estate
c. the use of equity to finance real estate
d. a and b
e. b and c - =B
Investors purchase multiple properties to:
a. diversify a portfolio
b. maximize investment return
c. minimize risk
d. a and b
e. all of the above - =E
Positive leverage is defined as the use of debt at a cost ________________ than the return on the
asset which __________________ the return on equity.
a. decreases, increases
b. less, increases
c. increases, decreases
d more, decreases
e equal, increases - =B
Using the formula ROE = [NOI - rD] /Equity, the term positive leverage implies that the return
On equity is ________________ than the return on assets if the cost of debt "r" is ___________
than ROA where ROA = NOI/EQUITY.
a. greater, less
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller hurryben. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now