Problem Set 1
Due: September 10, 2015 (Thu, before class)
1. You are making a decision whether to buy the townhouse you are currently renting. If you
buy it, you have to pay the following costs.
Townhouse price: $150,000 (You have enough money to pay the
Name: Umy Atika, Kaza
Class: FIN 460
Instructor: Jiro Yoshida
Problem Set 2
1. The estimated price elasticity of housing supply is 0.66 in San Francisco, CA. If housing prices increase
by 1%, what is the expected percentage increase
Price Elasticity of Supply = % change in supply % change in price
Miles per Hour
Opportunity Costs/Per Hour $
Gas Mileage/Per Gallon
Gas Price/Per Gallon
Psych Cost of Driving/Per Mile $
10 miles closer
Answer the following questions by filling in the yellow cells.
You manage a REIT. You set up the following cash flow pro forma for a target property.
* PBTCF includes the