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