MGMT 170 FINAL EXAM
QUESTIONS AND ANSWERS 2026
- 2027
C) Low dividend yield - ANSWERS-Shareholders expect to receive
all of the following from publicly traded REITs, EXCEPT:
A) Professional management
B) Liquidity
C) Low dividend yield
D) Diversification
C) Central bank intervention by the Federal Reserve to support the
economy during the pandemic reduced interest rates to historically
low levels - ANSWERS-Many of the policy measures taken to reduce
the health impact and economic consequences of the COVID-19
pandemic, like social distancing and "safer at home," adversely
affected the value of retail properties for all the following reasons,
EXCEPT:
A) The pandemic accelerated the change in consumer behavior to
more online spending activity causing a reduction of tenant demand
for physical retail space
B) Some retail landlords were unable to make their monthly mortgage
payments when tenants stopped paying their rent or went bankrupt
,C) Central bank intervention by the Federal Reserve to support the
economy during the pandemic reduced interest rates to historically
low levels
D) Many retail and restaurant tenants were unable to make their
monthly rent payments due to reduced customer levels which reduced
the NOI of those properties
C) The lease had a force majeure clause that specifically references
the possibility of a health crisis like the COVID-19 pandemic and the
tenant was unable to use the premises - ANSWERS-A force majeure
clause in a lease might allow a tenant to temporarily avoid its lease
obligations if certain extraordinary events occur that are beyond the
tenant's control and
that prevent the tenant from utilizing the leased premises. Under what
circumstances might the COVID-19 pandemic have allowed a tenant
to avoid paying rent?
A) A court of competent jurisdiction issued an order declaring that the
COVID-19 pandemic was a supervening event allowing for a delay in
rent payments by tenants
B) A federal, state, or local governmental authority issued a directive
preventing landlords from evicting tenants for non-payment of rent
during the time specified
C) The lease had a force majeure clause that specifically references
the possibility of a health crisis like the COVID-19 pandemic and the
tenant was unable to use the premises
D) All these answers are correct
,idk either A or B - ANSWERS-A 99-unit apartment building that was
acquired for $2.7 million generates a 7.5% before tax annual return on
equity with a $1.5 million 10-year interest-only first mortgage loan at
a 5.0% annual interest rate. What is the debt service coverage ratio on
the loan?
A) 2.2
B) 2.7
C) 1.83
D) 0.54
D) Reverse annuity and double helix tranches - ANSWERS-All the
following are types of mortgage backed securities, EXCEPT:
A) Interest-only and principal-only tranches
B) Floaters and inverse floaters
C) BBB, BB and B tranches
D) Reverse annuity and double helix tranches
A) Equity REITs primarily own real property investments whereas
mortgage REITs primarily own mortgage loans on properties and
mortgage-backed securities - ANSWERS-By 2022, about 95% of the
total market value of all publicly traded REITs was in equity REITs
and about 5% in mortgage REITs, and the total market capitalization
was almost $1.3 trillion. The primary difference between equity
REITs and mortgage REITs is:
, A) Equity REITs primarily own real property investments whereas
mortgage REITs primarily own mortgage loans on properties and
mortgage-backed securities
B) Equity REITs can be public whereas mortgage REITs must be
private
C) Equity REITs typically pay a higher dividend yield than mortgage
REITs
D) Equity REITs must be unleveraged whereas mortgage REITs can
be leveraged
C) 277,200 - ANSWERS-An apartment building development site in
Los Gatos, California was a 240' by 360' rectangular lot. If the local
zoning codes required that the building's footprint be setback fifteen
feet from each side of the property line, and if the FAR for that site
was 4.0 per square foot of the building's footprint, what would be the
maximum building square footage that could be built?
A) 310,500
B) 86,400
C) 277,200
D) 345,600
D) 9.4% - ANSWERS-A 58-unit apartment building in Newport
Beach, California was acquired for $36 million with a $26 million
fixed rate constant payment first mortgage loan at a 4.0% annual
interest rate that was fully amortizing over 30 years but due in 10
years. The apartment
QUESTIONS AND ANSWERS 2026
- 2027
C) Low dividend yield - ANSWERS-Shareholders expect to receive
all of the following from publicly traded REITs, EXCEPT:
A) Professional management
B) Liquidity
C) Low dividend yield
D) Diversification
C) Central bank intervention by the Federal Reserve to support the
economy during the pandemic reduced interest rates to historically
low levels - ANSWERS-Many of the policy measures taken to reduce
the health impact and economic consequences of the COVID-19
pandemic, like social distancing and "safer at home," adversely
affected the value of retail properties for all the following reasons,
EXCEPT:
A) The pandemic accelerated the change in consumer behavior to
more online spending activity causing a reduction of tenant demand
for physical retail space
B) Some retail landlords were unable to make their monthly mortgage
payments when tenants stopped paying their rent or went bankrupt
,C) Central bank intervention by the Federal Reserve to support the
economy during the pandemic reduced interest rates to historically
low levels
D) Many retail and restaurant tenants were unable to make their
monthly rent payments due to reduced customer levels which reduced
the NOI of those properties
C) The lease had a force majeure clause that specifically references
the possibility of a health crisis like the COVID-19 pandemic and the
tenant was unable to use the premises - ANSWERS-A force majeure
clause in a lease might allow a tenant to temporarily avoid its lease
obligations if certain extraordinary events occur that are beyond the
tenant's control and
that prevent the tenant from utilizing the leased premises. Under what
circumstances might the COVID-19 pandemic have allowed a tenant
to avoid paying rent?
A) A court of competent jurisdiction issued an order declaring that the
COVID-19 pandemic was a supervening event allowing for a delay in
rent payments by tenants
B) A federal, state, or local governmental authority issued a directive
preventing landlords from evicting tenants for non-payment of rent
during the time specified
C) The lease had a force majeure clause that specifically references
the possibility of a health crisis like the COVID-19 pandemic and the
tenant was unable to use the premises
D) All these answers are correct
,idk either A or B - ANSWERS-A 99-unit apartment building that was
acquired for $2.7 million generates a 7.5% before tax annual return on
equity with a $1.5 million 10-year interest-only first mortgage loan at
a 5.0% annual interest rate. What is the debt service coverage ratio on
the loan?
A) 2.2
B) 2.7
C) 1.83
D) 0.54
D) Reverse annuity and double helix tranches - ANSWERS-All the
following are types of mortgage backed securities, EXCEPT:
A) Interest-only and principal-only tranches
B) Floaters and inverse floaters
C) BBB, BB and B tranches
D) Reverse annuity and double helix tranches
A) Equity REITs primarily own real property investments whereas
mortgage REITs primarily own mortgage loans on properties and
mortgage-backed securities - ANSWERS-By 2022, about 95% of the
total market value of all publicly traded REITs was in equity REITs
and about 5% in mortgage REITs, and the total market capitalization
was almost $1.3 trillion. The primary difference between equity
REITs and mortgage REITs is:
, A) Equity REITs primarily own real property investments whereas
mortgage REITs primarily own mortgage loans on properties and
mortgage-backed securities
B) Equity REITs can be public whereas mortgage REITs must be
private
C) Equity REITs typically pay a higher dividend yield than mortgage
REITs
D) Equity REITs must be unleveraged whereas mortgage REITs can
be leveraged
C) 277,200 - ANSWERS-An apartment building development site in
Los Gatos, California was a 240' by 360' rectangular lot. If the local
zoning codes required that the building's footprint be setback fifteen
feet from each side of the property line, and if the FAR for that site
was 4.0 per square foot of the building's footprint, what would be the
maximum building square footage that could be built?
A) 310,500
B) 86,400
C) 277,200
D) 345,600
D) 9.4% - ANSWERS-A 58-unit apartment building in Newport
Beach, California was acquired for $36 million with a $26 million
fixed rate constant payment first mortgage loan at a 4.0% annual
interest rate that was fully amortizing over 30 years but due in 10
years. The apartment
