Ree 4204 - Study guides, Class notes & Summaries

REE 4204 EXAM QUESTIONS WITH COMPLETE SOLUTIONS What is the market value? - Answer-the average price the market is willing to pay for that asset What is financial leverage and why do you care about it? - Answer-positive (favorable) leverage increases your rate of return What is a call option? - Answer-the ability to pay off the loan early What is a put option? - Answer-allows the borrower to put the property in place of the debt what is the function of an intermediary? - Answer-its ...

REE 4204 Sirmans Exam Questions With Correct Answers Finance - answer-study of the process, institutions,markets and instruments used to transfer money and credit between individuals, business, and gov applied economics - answer-study of the allocation of resources for the purpose of producing goods and services for various members of society -considers time value of money and implications of the interest rates -focused on cash flows not profts -makes extensive use of the concept of risk...

REE 4204 Exam Questions With Revised Answers What are the four requirements for tax-deferred exchange? - answer1. it must be like-kind and help for trade, business, or investment (can do farmland to apartments) CANT DO owner- occupied residential (primary residence) 2. help for trade, business, or investment (can do farmland to apartments) CAN'T DO owner- occupied residential (primary residence) 3. The exchange must occur cant sell for cash and immediately purchase 4. basis acquired for...

REE 4204 Chapter 13 Quiz (1)

dy of institutions, markets, and instruments used to transfer money and credit for the purpose of developing or acquiring real property real property - answer-rights,powers, and privileges associated with the use of real estate real estate - answerland and all the fixed immovable improvements on it Environment of real estate - answerthe institutions that create and purchase real property and the markets within which they are transferred financial intermediaries - answer-the financial insti...

REE 4204 Chapter 10 Quiz (1)

REE 4204 Chapter 6 Quiz (1)

REE 4204 Sirmans Exam 1 Questions With Revised Answers In general, inflation is a monetary phenomenon resulting from an increase in money supply as opposed to resulting from an increase in general price levels. - answerTrue According to the liquidity premium theory, investors are willing to pay a price premium for securities with shorter maturities. - answerTrue For most investments, cash flow and net profit can be used interchangeably in asset valuation. - answerFalse Commercial banks a...

REE 4204 Exam Questions With Revised Answers Why do interest rates matter? - answeryou want to pay the lowest rate you can because interest determines the payment you have. How are interest rates determined? - answerreal rate + inflation rate = interest rate What are some risks in real estate? - answerdefault risk, interest rate risk, inflation risk What is a yield curve? - answerrelationship between interest rates on short term assets vs. long term assets. What is the market value? - an...