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
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
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 Pri
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 followin
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 conside
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
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 e
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
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 inflati
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 Ava
_
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
_
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
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 Expen
Approach & Expectations
TO:
FROM:
Students of NYU Real Estate Finance
Dan Pryor, Adjunct Professor
Approach
The course is an immersion into the concepts of corporate and real estate finance. We will l
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 accou
Gordons Growth Model and Capitalization Rates 1
Baseball legend Casey Stengel said, Never make predictions, especially about the future. You
are paid the big bucks because investment valuations are ba
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 scott.detragl
REAL ESTATE FINANCE
NPV and IRR Functions in Excel: The Basics
Source: Geltner
Suppose we have an investment with the following projected cash flows (including initial investment,
operating and revers
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 pro
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 tha
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
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
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
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 Sco
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
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
accepta
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 as
Inputs
2%
8%
30%
400
2%
Management fee
Hurdle rate
Carried Interest
Committed Capital (ml
Percentage Mangers (
Outputs
Committed Capital
Capital at the end
400
1792
investment period
draw-downs
years
GLOSSARY OF ACRONYMS
AIFM
Alternative Investment Fund Managers
AMC
Asset Management Company
CEF
Closed-End Fund(s)
CFt
Cash Flow at time "t"
CG deals
Corporate Governance Deals
D/E
Debt-to-Equity
DCF
Q1
rf
E[rM]
SD[rM]
1%
5%
15%
E[r]
I
ii
iii
beta
1.4
0.6
-0.2
beta
E[r]
10%
5%
-1%
w(rf)
w(rM)
I
ii
iii
E[r]
4%
5%
7%
sd[r]
6%
15%
21%
w(rf)
w(rM)
I
ii
iii
P0
E[P1]
E[D1]
50
53
0
i
ii
beta
1.0
2.0
beta
Problem Set #5
1. Assume the risk-free rate is 1% (rf = 1%), the expected return on the market portfolio is 5%
(E[rM] = 5%) and the standard deviation of the return on the market portfolio is 15% (M