Real Estate Principles Chapter 9 Answer Key

Real Estate Principles Chapter 9 Answer Key - Real Estate...

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Real Estate Principles: A Value Approach Chapter 9 Test Problems Answer Key 1. Which of the following expenses is not an operating expense? a. Utilities b. Reserve for replacements and other non-recurring expenses c. Management d. Mortgage payment e. Advertising 2. To estimate the value of the equity portion of a real estate investment, an appraiser divides the equity income (BTCF) by which of the following? a. Equity yield rate (y e ) b. Equity dividend rate (R e ) c. Overall capitalization rate (R o ) d. Mortgage constant (R m ) e. Discount rate (y o ) 3. An overall capitalization rate (R o ) is divided into which type of income or cash flow to obtain an indicated value? a. Net operation income (NOI) b. Effective Gross Income (EGI) c. Before Tax Cash Flow (BTCF) d. After Tax Cash Flow (ATCF) e. Potential Gross Income (PGI)
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4. Which of the following types of properties probably would not be appropriate for income capitalization? a.
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This homework help was uploaded on 04/06/2008 for the course REAL 4000 taught by Professor Martin during the Fall '08 term at University of Georgia Athens.

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Real Estate Principles Chapter 9 Answer Key - Real Estate...

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