Name: Homework 3

horizontal rule

Instructions:  

horizontal rule

Question 1   Multiple Answer (1.0000 points)
  Question: In the Bockl approach, entrepreneurial leverage results from: (Check all that apply)
 
 
    Borrowing at a higher interest than the property is
Borrowing at a lower interest than the property is
Using other people's money
Debt amortization
Economic cycles
 
 

 

Question 2   Multiple Answer (1.0000 points)
  Question: Assumptions and problems with the "popular" approaches to investment analysis include: (Check all that apply)
 
 
    Based on win/lose negotiations
Assumes an expanding local economy
Based upon the "bigger fool" theory
Ignores risk
Based upon "get rich quick" schemes
 
 

 

Question 3   Multiple Answer (1.0000 points)
  Question: Given the following information, what is the indicated overall rate using the Ellwood formulation?
Loan to value=0.8
Mortgage Interest=7.5%
Term=30 years
Payments per year=12
Equity Yield Rate=11%
Holding Period=7
Appreciation/Depr.=+16%
 
 
    .0592
.0661
.0653
.0824
.0988
 
 

 

Question 4   Multiple Answer (1.0000 points)
  Question: Given the following information, what is the indicated overall rate using the Ellwood formulation?
Loan to value=0.75
Mortgage Interest=10%
Term=30 years
Payments per year=12
Equity Yield Rate=11%
Holding Period=8 years
Appreciation/Depr.=+14.00%


(Check all that apply)
 
 
    .0881
.0904
.0906
.1024
.1141
 
 

 

Question 5   Multiple Answer (1.0000 points)
  Question: Which of the following approaches use a stabized net operating income?
(Check all that apply)
 
 
    Investment value
Single period equity valuation
Discounted cash flow
Ellwood
Harldson