BUSINESS DEVELOPMENT II
Take Home Final Examinations
Due: December 8, 2020 6PM
___________________________________________________________________________________
TOTAL POINTS: 50 GRADE POINTS: 25
QUES POINTS QUES POINTS
Q1: 2.5 Q6: 2.5
Q2: 2.5 Q7: 6.5
Q3: 7 Q8: 5
Q4: 8 Q9: 5
Q5: 6 Q10: 5
1. Match the Term with the appropriate statement:
Terms
i. Royalty Fee – The only fee that is profitable in a franchise.
ii. Properties – The assets and opportunities in a real estate game
iii. Financial Leverage- Is the use of debt or preferred stock financing.
iv. Return on Equity- This is the cash flow after financing divided by cash
invested or cash on cash.
v. Capital Markets - The Liabilities and Equity in a Real Estate Game.
vi. Advertising Fee – the fee that represents a reimbursement of expenses
incurred.
vii. Initial Public Offering - Source of raising capital in the primary market.
viii. Bid- The price you will pay to own a share.
ix. Ask- The price you will receive to sell your share.
x. Return on Assets- Cash Flow from Operations divided by Purchase Price.
1
, BUSINESS DEVELOPMENT II
Take Home Final Examinations
Due: December 8, 2020 6PM
___________________________________________________________________________________
Statements
a. The price you will pay to own a share
b. The Assets and Opportunities in a Real Estate Game.
c. Source of raising capital in the Primary Market
d. Cash Flow from Operations divided by Purchase Price.
e. The fee representing reimbursement of incurred expenses
f. The price you will receive to sell your share.
g. The Liabilities and Equity in a Real Estate Game.
h. Cash Flow after Financing divided by cash invested or cash on cash
i. The use of debt or preferred stock financing
j. The only fee that is profitable in a franchise
2. Mark the following statements as True or False
i. Most of the data collection in hotel valuations is primary data. True
ii. The preferred stock earns a fixed rate of return. True
iii. Financial risk is all about the variability of earnings. True
iv. A firm with high business risk is using fixed cost sources of financing. False
v. As interest rates rise, bond prices fall. True
vi. Neighborhood analysis includes the question of whether there is development
activity around the subject hotel. True
vii. The ownership interest in real estate with the most rights is a fee simple interest.
True
viii. You purchase common stock only for its capital appreciation. False
2
Take Home Final Examinations
Due: December 8, 2020 6PM
___________________________________________________________________________________
TOTAL POINTS: 50 GRADE POINTS: 25
QUES POINTS QUES POINTS
Q1: 2.5 Q6: 2.5
Q2: 2.5 Q7: 6.5
Q3: 7 Q8: 5
Q4: 8 Q9: 5
Q5: 6 Q10: 5
1. Match the Term with the appropriate statement:
Terms
i. Royalty Fee – The only fee that is profitable in a franchise.
ii. Properties – The assets and opportunities in a real estate game
iii. Financial Leverage- Is the use of debt or preferred stock financing.
iv. Return on Equity- This is the cash flow after financing divided by cash
invested or cash on cash.
v. Capital Markets - The Liabilities and Equity in a Real Estate Game.
vi. Advertising Fee – the fee that represents a reimbursement of expenses
incurred.
vii. Initial Public Offering - Source of raising capital in the primary market.
viii. Bid- The price you will pay to own a share.
ix. Ask- The price you will receive to sell your share.
x. Return on Assets- Cash Flow from Operations divided by Purchase Price.
1
, BUSINESS DEVELOPMENT II
Take Home Final Examinations
Due: December 8, 2020 6PM
___________________________________________________________________________________
Statements
a. The price you will pay to own a share
b. The Assets and Opportunities in a Real Estate Game.
c. Source of raising capital in the Primary Market
d. Cash Flow from Operations divided by Purchase Price.
e. The fee representing reimbursement of incurred expenses
f. The price you will receive to sell your share.
g. The Liabilities and Equity in a Real Estate Game.
h. Cash Flow after Financing divided by cash invested or cash on cash
i. The use of debt or preferred stock financing
j. The only fee that is profitable in a franchise
2. Mark the following statements as True or False
i. Most of the data collection in hotel valuations is primary data. True
ii. The preferred stock earns a fixed rate of return. True
iii. Financial risk is all about the variability of earnings. True
iv. A firm with high business risk is using fixed cost sources of financing. False
v. As interest rates rise, bond prices fall. True
vi. Neighborhood analysis includes the question of whether there is development
activity around the subject hotel. True
vii. The ownership interest in real estate with the most rights is a fee simple interest.
True
viii. You purchase common stock only for its capital appreciation. False
2
