QUESTIONS & ANSWERS || HIGH-YIELD FINANCE REVIEW
|| RATIO ANALYSIS, FINANCIAL STATEMENTS, CASH FLOW
& VALUATION || COMPLETE STUDY GUIDE || EXAM-READY
TEST BANK || GRADED A+
Debt Component - CORRECT ANSWER-Borrowed funds used for real
estate investment.
Commercial Banks - CORRECT ANSWER-Banks providing loans for
real estate.
Mortgage-Backed Securities - CORRECT ANSWER-Investment
products backed by mortgage loans.
Savings Institutions - CORRECT ANSWER-Banks focused on savings
and loans.
Government Entities - CORRECT ANSWER-Government-backed
organizations in real estate finance.
Geospatial Data - CORRECT ANSWER-Location-based data used in
real estate analysis.
Psychographics - CORRECT ANSWER-Study of consumer personality
and lifestyle traits.
,Cash Flow Model - CORRECT ANSWER-Framework for analyzing
cash inflows and outflows.
Investor Preferences - CORRECT ANSWER-Factors influencing
investor decision-making and risk tolerance.
Time Value of Money - CORRECT ANSWER-Concept that money's
value changes over time.
Compounding - CORRECT ANSWER-Process of earning interest on
previously earned interest.
Discounting - CORRECT ANSWER-Calculating present value from
future cash flows.
Future Value - CORRECT ANSWER-Value of an investment at a
specified future date.
Present Value - CORRECT ANSWER-Current worth of a future sum of
money.
Annuity - CORRECT ANSWER-Series of equal payments made at
regular intervals.
Sinking Fund Payments - CORRECT ANSWER-Regular deposits to
accumulate funds for future liabilities.
,Internal Rate of Return (IRR) - CORRECT ANSWER-Discount rate
making net present value zero.
Equal Payments - CORRECT ANSWER-Consistent payment amounts
over a specified period.
Discounted Cash Flow Analysis - CORRECT ANSWER-Valuation
method using future cash flows discounted back.
Variable Cash Flows - CORRECT ANSWER-Cash flows that change
over time.
Compounding a Single Amount - CORRECT ANSWER-Calculating
future value from one initial investment.
Compounding an Annuity - CORRECT ANSWER-Calculating future
value from multiple equal payments.
Discounting a Single Future Amount - CORRECT ANSWER-Finding
present value of one future cash flow.
Discounting an Annuity - CORRECT ANSWER-Calculating present
value from multiple future payments.
Recalculating IRR - CORRECT ANSWER-Adjusting IRR based on
changes in cash flow.
, Comparison of Investment Cash Flows - CORRECT
ANSWERAnalyzing different cash flow scenarios for investments.
Components of Compounding - CORRECT ANSWER-Factors
including interest rate and time period.
Consistency of n and i Components - CORRECT ANSWER-Ensuring
time periods and interest rates align.
Six Functions of the Dollar - CORRECT ANSWER-Different ways
money can grow or be utilized.
Sample Problems - CORRECT ANSWER-Practical examples
illustrating financial concepts.
Internal Rate of Return - CORRECT ANSWER-Discount rate making
NPV zero for investments.
Net Present Value - CORRECT ANSWER-Difference between present
value of cash inflows and outflows.
Target Yield - CORRECT ANSWER-Expected return rate for
investment performance measurement.
Capital Accumulation Process - CORRECT ANSWER-Growth of
capital through reinvestment of earnings.
Reinvestment of Cash Flows - CORRECT ANSWER-Using positive
cash flows to generate additional returns.