REAL ESTATE FINANCE
Class 1 Homework
Time (n)
Rate (R)
Invest (PV)
Result (FV)
1 year
10%
$100
$110
Time (n)
Rate
Invest (PV)
Result (FV)
10 years
10%
$100
Year
Begin Value
Rate
Interest $
End Value
1
$100
10%
10
$110
2
Formula: FV = PV x (1+R)^n)
Please
New York University
School of Continuing and Professional Studies
Real Estate Institute
Corporate Finance
Y64.1070/3310.001
Winter 2012
PROBLEM SET #1 REVIEW FOR MID-TERM
1.
You
are given the following cash flows.
What
(t = 0) if the discount rate is 12 p
REAL ESTATE FINANCE
A DISCUSSION ON INVESTMENT RETURNS
Class 1
Dan Pryor
Real Estate Finance
Investment Returns
Does you investment property provide adequate returns, given the risk?
What other real estate investment alternatives are there?
What about alt
Residential Mortgage Backed
Securities
A changing market
What is an RMBS
Type of mortgage-backed security backed
by mortgages on residential real estate.
Essentially a pool of loans secured by
homes
Can be mortgages to prime borrowers,
mortgages to Alt
Assume it is December 31, 2011
You work for the CFO for the Apple. The Board wants you to buy back shares, but has left if up to you to
determine if this is a good time to do so. The CFO wants you to estimate a cost of capital for Apple and
perform a DCF
Geltner - Questions-Chapters 7-9
Part 1. Multiple Choice Questions
1. Which statement is most accurate?
(a) Real Estate is a better inflation hedge than Treasury Bills.
(b) Stocks are a better inflation hedge than Real Estate.
(c) Long-Term Bonds are a be
DCF ANSWER FROM FALL 2010 FINAL EXAM
Corporate Finance Fall 2010
Open Book, open notes, no computers, no spreadsheets allowed
Time allowed 2 hours for entire final
Show Your Work Partial Credit is Available
30 points for this problem
NAME_
1. Sun Communit
A few of the key risk factors in equity return
Probability of expected cash flow
Liquidity
Interest rates
Leverage
Taxes
Control
All investments must be considered on an after tax bas
Key risk considerations
- Broad Market
1. Economy
2. Capital Market cyc
THE BASIC OBJECTIVES
Basic financial objectives of real estate financial modeling include:
1 Sources & Uses
How much are you paying for the building?
How much debt and equity is needed?
2 Purchase Price and Exit Valuation Parameters
What are the expected
_
Name
(please staple sheets)
Class 7 - Chapters 10-11 Questions
Part 1. Multiple Choice Questions (10 Points each)
For the following two questions: Suppose an office building
has a single tenant who pays $45,000 per year at the end of
each year in a 5-ye
REAL ESTATE FINANCE
Assignment
1 Create a 10 Year P&L Statement (Begin 2012)
2 See Sources & Uses for Purchase and Financing Assumptions
3 Assume Lease Renewals Expire 12/31/2022
4 Assume $20 TI Expenses and $0 for Broker Fees
5 Sell Asset at End of Year
Midterm Review
1) Key Risk Factors in Equity Returns
a. Probabilities of expected CFs
b. Leverage
c. Interest Rates
d. Liquidity
e. Control
f. Taxes
g. IRR
h. Cash-on-cash returns
i. Return on Equity
2) All investments must be considered on an after-tax b
Practice Midterm Questions
Foundations of Finance
Foundations of Finance Practice Midterm Questions
Prof. Anthony Lynch
I.
[15 points] You will be making 20 annual contributions of $75 to a bank account (the
first is made at the end of year 1) that pays a
Commercial Mortgage Backed
Securities
A changing market
What is a CMBS
Commercial mortgage-backed securities
(CMBS) are a type of mortgage-backed
security backed by mortgages on
commercial rather than residential real
estate.
Essentially a pool of loans
Sample Problem for Mid-Term
It is December 2004. An analyst has approached you about evaluating General Mills, a
maker of cereals and other food products.
Analyst has prepared four years of simple projections. One is for actual year 2004 and
the years 200
Assignment for Case #1 (40 points)
Professor Scott DeTraglia
Corporate Finance Spring 2012
Case #1 Case Questions due Sunday, April 1st at 11PM. Please Email to me at
[email protected] and [email protected] Please complete in groups of 2 to 5.
We wi
REAL ESTATE FINANCE
Fall 2012
Mondays 9:30am 12:00pm
REAL1-GC.1035.001 / DEVE1-GC.1035.001
Instructor:
Dan Pryor
Odessa Realty Investments, LLC
[email protected]
O. 646-448-3404
Course Overview:
This course will provide students with a detailed appr
Part 3 Questions-Chapters 7-9
Part 1. Multiple Choice Questions
1. Which statement is most accurate?
(a) Real Estate is a better inflation hedge than Treasury Bills.
(b) Stocks are a better inflation hedge than Real Estate.
(c) Long-Term Bonds are a bette
Solutions to Homework 1, FINC-UB.0002
Prof. Thomas M. Mertens
Topic 1: Financial Markets
1. You are among the OTC marketmakers in the stock of BioEngineering, Inc. and quote
a bid of 102 1/4 and an ask of 102 1/2. Suppose that you have a zero inventory.
(
HOSPITALITY
CONSULTING
USA
INVESTMENT SURVEY
MAY 2012
HOSPITALITY
RESEARCH
A PERIODIC PROFESSIONAL PUBLICATION
VOLUME 23
Price: $325 Single Issue
Key Metrics and Investor Expectations Improving
By Scott Smith MAI and Bill Morton
pproximately four years ag
Homework 1, FINC-UB.0002
Prof. Thomas M. Mertens
Due at the start of Class 7
Topic 1: Financial Markets
1. You are among the OTC market makers in the stock of Bio-Engineering, Inc. and
quote a bid of 102 1/4 and an ask of 102 1/2. Suppose that you have a
Finding the Right Financing Mix: The
Capital Structure Decision
Aswath Damodaran
Stern School of Business
119
First Principles
l
Invest in projects that yield a return greater than the minimum
acceptable hurdle rate.
The hurdle rate should be higher for
CHAPTER 2
TIME VALUE OF MONEY
OVERVIEW
A dollar in the hand today is worth more than
a dollar to be received in the future because,
if you had it now, you could invest that dollar
and earn interest. Of all the techniques used
in finance, none is more impo
1
CHAPTER 33
VALUING BONDS
The value of a bond is the present value of the expected cash flows on the bond,
discounted at an interest rate that is appropriate to the riskiness of that bond. Since the
cash flows on a straight bond are fixed at issue, the v
Part 3 Questions-Chapters 7-9
Part 1. Multiple Choice Questions
1. Which statement is most accurate?
(a) Real Estate is a better inflation hedge than Treasury Bills.
(b) Stocks are a better inflation hedge than Real Estate.
(c) Long-Term Bonds are a bette
10
Illustration 32.2: An EVA Valuation of Boeing - 1998
The equivalence of traditional DCF valuation and EVA valuation can be illustrated
for Boeing. We begin with a discounted cash flow valuation of Boeing and summarize the
inputs we used in Table 32.3.
Homework 4, FINC-UB.0002
Prof. Thomas M. Mertens
Due at the start of class 27
Topic 8: Fixed Income Securities
1. A zero coupon bond with 2.5 years to maturity has a yield to maturity of 25% per annum. A
3-year maturity annual-pay coupon bond has a face v
Questions Chapters 1 and 2
Part 1. Multiple Choice Questions
1. Which are the two fundamental markets in commercial real estate?
(a) The space market and the asset market.(b) The space market and
the money market.(c) The construction market and the land m