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Real Estate Finance

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Please these are homework questions and they do not need to be very long but concrete and complete answers to the questions.
Answer these questions in light of Real Estate Finance.
Real Estate.
1. What items should be considered when forecasting income and expenses for real estate over the investor's anticipated holding period?
2. Discuss the difference between an income and expense statement as prepared by an accountant, and an operating statement used by a real estate investment analyst.
3. When it comes to real estate finance, How does favorable financial leverage differ from unfavorable financial leverage?
4. Should a real estate investor try to be "debt-free?" Why or why not?

Answer the following two in light of International Finance
1. Discuss various types of derivatives contracts: Options, Futures and Forward Contracts.
2. Discuss various types of government and central bank intervention to impact currency exchange rates.

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MBA-Finance homework questions
Please these are homework questions and they do not need to be very long but concrete and complete answers to the questions.
Answer these questions in light of Real Estate Finance.
Real Estate.
1. What items should be considered when forecasting income and expenses for real estate over the investor's anticipated holding period?
The real estate forecasts value originates from the stream of future benefits that owners use. First it is essential to forecast the stream of benefits that will emanate from the investment. The beginning of the forecast is to reconstruct the operating history of the property. Past trends are projected into the future and the changes in the political, economic, , and technological environment that is likely to affect the property's ability to generate future income. The items start with gross rent the property would generate if fully rented. This is adjusted for vacancies and rent losses. Add to this the revenue from other sources than rent, to get the effective gross revenue. Deducting operating expenses from the effective gross revenue gives net operating income. Deductions are made for cost of financing the real estate and the income tax payable to get the net cash flow to the investor. The information about rental revenue and operating expenses is obtained from the past record of the property and from the operating records of the comparable properties.
2. Discuss the difference between an income and expense statement as prepared by an accountant, and an operating statement used by a real estate investment analyst.
The operating statement commences with a figure of gross rent if the property is fully rented. ...

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Real Estate Finance Problem Set

1. The difference between the rate of return on assets and the cost of borrowing is:
(A) financial leverage
(B) spread
(c) debt service
(D) none of the above

2 When the rate of return on assets exceeds the cost of borrowing, it represents:
(A) negative spread
(B) positive spread
(C) favorable spread
(D) unfavorable spread

3 If the real estate investment that is being financed is the investor's sole asset, the investor's debt-to-equity ratio will be:

(A) the same as the loan-to-value ratio
(B) greater than the loan-to-value ratio
(C) less than the loan-to-value ratio
(D) unrelated to the loan-to-value ratio

4. A property has a potential gross rent of $1,500,000; operating expenses of $765,750; a vacancy allowance of $45,000, and other income of $9,000. What is its effective gross income?

(A) $1,455,000
(B) $1,464,000
(C) $698,250
(D) none of the above

5. In contemporary risk analysis:
(A) risk is defined as the measurable likelihood of variance from the most probable outcome
(B) no attempt is made to quantify risk
(C) the terms risk and uncertainty are used synonymously
(D) investors are viewed as being risk-neutral

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