FINAL OXAM (YA) Finr 2l0 Section CX (SUMMEX,2013)
THIS EXAM MUST Bf, RFTURNED INTACT (Do not remove stapJgl
Read InstructioTrs care&llv
Tlie notary tinalizes the transactio:r between the buyer, the seller and the appraiser.
FINAL EXAM (VA) Fina 210 Section CX (SUMMER 2013) 1
THIS EXAM MUST BE RETURNED INTACT [Do not remove staple!
Read Instructions carefull
COURSE: NUMBER: '
FINAL EXAM DATE: TBA
Version A AUGUST 201 3
Companies invest in real estate as part of their portfolios because there are a limited
number of good stocks and bonds in the market.
Studies have shown that if companies invest 20 percent of
You, the investor, are not a major participant in the real estate investment process.
If the nominal rate is 9 perce
The exclusive right to sell agreement guarantees the broker the commission even if the
owner sells the property.
Companies invest in real estate as
Rent or lease income is less risky than other income (for example, sale of merchandise)
because of the contractual nature of the lease agreement.
Companies invest in real estate as part of th
The agents duties, responsibilities and rights include care, obedience, accountability,
loyalty and communication or notification when an offer to purchase is made, and this
guarantees the commissions if
4. B 8.24
5. D 13360
12. D 75600
13. A 55368 n=15; ear=7.64%; PV=484500
14. D 552306
15. 46385 A
16. B 29038
22. A 20803
Lesson 6: The Tax Environment
Governments on all levels (municipal, provincial and federal) tax the equity owner on income and
The taxes on income are for money made on rents received from tenants.
The taxes on capital gains
Quiz 1 Version 2 (ANSWERS IN BOLD)
1) You were promised $500 at the end beginning of each year for the next seven years.
If interest rate is 10 percent, what is the present value of the cash flows? Rounded to the
2) The restrictions
Lesson 3: The market Environment
1. In real estate, diversification benefits are possible because of what type of
e) Market Risk
2. What percentage of real estate risk can be diversifie
Lesson 7: The Investment Decision: Criteria (No book Chapter)
Define decision-making criteria
Calculate Payback Periods (PB)
Calculate Returns on Assets (ROA)
Calculate Returns on Investments (ROI) or Returns on Equities (ROE)
Calculate Gross Income Multi
Real Estate Investement
Most common form of equity investor:
Real Estate Investment Trust (REIT)
Most common mortgage lender
Real Estate Investmen
Lesson 2 Time Value of Money
5 variables : PV, FV, PMT, r, t, n
The nominal rate is also known as in name only because it has not been adjusted for
inflation. Other sources might also call it Quoted Rate, Stated Rate, Observed Rate, or Annual
" FinaZi 012 AA (FALL 2016) Quiz #1: (worth 5%) September 28", 2013
NAME: 4% a, Qmcm, we: K
. Period of analysis Is 25 years effective put-in-use
o Demolition costs: $200,000
. Construction Costs: $9,600,000
0/ Land: $5,500,000
or Land with building pur
Texas Instrument BAII Plus Tutorial
Perform the following steps to setup your BAII Plus financial calculator.
Reset the calculator. This will erase all memory keys and clear all worksheets. All settings
will be restored to the original m