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Question
NOI minus Debt Service equals:
I) Cash Flow Before Taxes
II) Equity Dividend
III) DCF
IV) NPV
a) I, II
b) III, IV
c) I, III
d) II, IV
Answer
This answer is hidden. It contains 1 characters.
Related questions
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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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Adjustments to NOI: Vacancy Loss
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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
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You believe your property is reaching peak cash flow potential. You can sell an equity joint venture interest to a pension fund or increase the amount of the first mortgage outstanding. What are the implications of each of these choices? You read an article in the local paper about a new development that threatens the market dominance of your property. Does this change your choice of financing?
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b) allocations that are reflected in capital accounts
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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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Five years ago you invested in a brand new 100,000 square foot office building. The building was fully leased to great tenants with 10 year leases. You financed your purchase with a ten year mortgage at a rate that would be considered high in todays market. You can refinance today and get a new ten year loan at a lower rate. You will however be required to pay your current lender a steep prepayment penalty. You can also wait until the loan comes to term and repay the loan without any penalty. This was your plan until you recently read about a brand new office park being discussed for the old farm just a mile down the road. Coincidentally, this development, if built, could open just as your tenant leases are coming up for renewal. What are your thoughts?