REAE 3325 Unit 4 Section 2& 3 Quiz Review Questions and Answers 100% Correct
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Course
REAE 3325
Institution
REAE 3325
REAE 3325 Unit 4 Section 2& 3 Quiz Review Questions and Answers 100% CorrectREAE 3325 Unit 4 Section 2& 3 Quiz Review Questions and Answers 100% CorrectREAE 3325 Unit 4 Section 2& 3 Quiz Review Questions and Answers 100% CorrectIf the debt payment (mortgage payment) is $100,000 and the Net Operatin...
REAE 3325 Unit 4 Section 2& 3 Quiz
Review Questions and Answers 100%
Correct
If the debt payment (mortgage payment) is $100,000 and the Net Operating Income
(NOI) is $130,000, what is the Debt Coverage Ratio (DCR)? - ANSWER-DCR= NOI /
Debt Payment
DCR = $130,000 / $100,000 = 1.3
The equity dividend rate is calculated by: - ANSWER-Dividing the before tax cash flow
by the equity investment.
Cap Rates can be determined by dividing ___________ by _____________. -
ANSWER-NOI, Price (or value)
What proforma category represents the property's expected, unleveraged dividend? -
ANSWER-Net Operating Income
If the acquisition price is $1,200,000, the potential gross income is $250,000 and the
vacancy credit loss is $50,000, what is the Effective Gross Income Multiplier? -
ANSWER-6
If the acquisition price is $1,250,000 and the equity contribution is $250,000, what is the
Loan to Value Ratio? - ANSWER-Loan Amount= Value of Property - Equity Ownership
= $1,250,000 - $250,000 = $1,000,000
Loan to Value Ratio = $1,000,000 / $1,250,000 = 80%
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