For the DCF Shotgun to hit the target right, it needs to types of bullets?

It needs accurate C-Flow forecast and appropriate discount rate.

Changes in the BS under A/R must also be reflected where?

C-Flow changes WHEN A/R decreases, now more cash has entered the Co.

Secondary data is Gov. Census Bureau, Primary data is?

Survey of shoppers, interviews with local retailors

Using what ratio helps Co. helps Co. keep a healthy balance between debt & equity?

The debt-to-equity ratio helps co. with maintaining financial stability.

What does a high WALT mean?

A high WALT means low risk, long term tenant = low risk

2 Things COC ignores?

COC ignores long term gains, appreciation and Debt

Why is exit cap rate so IIII on a Levered return?

Because exit cap rate determines the sales price at disposition.

In Mortgage - Equity analysis, what is equity build-up?

It is the reduction in mortgage principle, through amortization payments

The natural breakpoint calculation?

Base rent divided by percentage rate

What Doc provides legal description, boundary lines, easements and encroachment info?

ALTA American Land Title Association Survey

The Profitability index measures the relationship between?

measures relationship between cost & benefits of investment, by Cal PV of future C-flows to initial investment.

The difference between the BTIRR & ATIRR is that?

ATIRR also includes Income taxes on C-Flow & Depreciation and Interest tax benefits.

The difference between Assumptions & Valuations?

A Co may have very different Valuations for the same property because the use different assumptions

Solve NOI when you have the cap rate & the Prop V?

IIII You multiply the V by the cap rate to get your NOI

The best ratio to see if Co. can raise cash ASAP?

What do you use the quick ratio for?

COC only includes OP income in Cal. EM also includes?

The EM Cal also includes profit from sale of prop

Value Add strategy is seeking higher cap rate through?

By improving & renovating properties to increase returns.

Effective Gross Income Multiplier formula?

Sales price Divided by Effective Gross Income

Throughput & efficiency

How efficiently a prop converts inputs to outputs

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CRE 2

Second general stack

Question	Answer
What financial statement do you need to Calculate Working Capital?	The Balance sheet
For the DCF Shotgun to hit the target right, it needs to types of bullets?	It needs accurate C-Flow forecast and appropriate discount rate.
Changes in the BS under A/R must also be reflected where?	C-Flow changes WHEN A/R decreases, now more cash has entered the Co.
Secondary data is Gov. Census Bureau, Primary data is?	Survey of shoppers, interviews with local retailors
Using what ratio helps Co. helps Co. keep a healthy balance between debt & equity?	The debt-to-equity ratio helps co. with maintaining financial stability.
What does a high WALT mean?	A high WALT means low risk, long term tenant = low risk
2 Things COC ignores?	COC ignores long term gains, appreciation and Debt
Why is exit cap rate so IIII on a Levered return?	Because exit cap rate determines the sales price at disposition.
In Mortgage - Equity analysis, what is equity build-up?	It is the reduction in mortgage principle, through amortization payments
The natural breakpoint calculation?	Base rent divided by percentage rate
What Doc provides legal description, boundary lines, easements and encroachment info?	ALTA American Land Title Association Survey
The Profitability index measures the relationship between?	measures relationship between cost & benefits of investment, by Cal PV of future C-flows to initial investment.
The difference between the BTIRR & ATIRR is that?	ATIRR also includes Income taxes on C-Flow & Depreciation and Interest tax benefits.
The difference between Assumptions & Valuations?	A Co may have very different Valuations for the same property because the use different assumptions
Solve NOI when you have the cap rate & the Prop V?	IIII You multiply the V by the cap rate to get your NOI
The best ratio to see if Co. can raise cash ASAP?	What do you use the quick ratio for?
COC only includes OP income in Cal. EM also includes?	The EM Cal also includes profit from sale of prop
Value Add strategy is seeking higher cap rate through?	By improving & renovating properties to increase returns.
Effective Gross Income Multiplier formula?	Sales price Divided by Effective Gross Income
Throughput & efficiency	How efficiently a prop converts inputs to outputs

Created by: Swarbv0a

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