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Question
If LTV increases and debt service coverage decreases what is the impact on the cost of debt?
a) decreases
b) remains the same
c) increases
d) no impact
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Valuation: NPV The owners of the Centre at New Hope purchased the property at the end of 2002. Adjusted NOI for 2003 was projected at $4 million and expected to rise at 5% per annum over a seven year hold period. The property was purchased at a 9% cap rate based on 2003 adjusted NOI. The owners expect that they will be able to sell it at the end of the holding period at an 8% cap rate. Can the owners achieve a 10% return? (Assume the owners are tax exempt)
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General
An office building has 10,000 square feet. Average rent is $20 per foot. Average operating expenses are $10 per foot. The average expense stop is $6 per foot. Every fifth year a 5,000 square foot tenant comes up for renewal and it costs $25 per foot to replace the tenant (leasing commissions and tenant allowance). Non revenue generating capital expenditures is $1 per foot per year. What is the stabilized pre tax cash flow?
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Depreciation
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Adjustments to NOI: Vacancy Loss
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True or False
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Put the stages of the land development process in the proper order: a) Contact Broker, Option, Development, Sales b) Contact Broker, Development, Option, Sales c) Development, Contact Broker, Sales, Option d) Option, Contact Broker, Sales, Development
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Which tranche takes the greatest risk in CMBS?
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