IAAO 102 Chapter 3 Review questions with
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correct answers |
5 |Methods |of |developing |the |overall |capitalization |rate |(Ro) |- |correct |answer |1. |derivation |
from |comparable |sales |
2. |band |of |investment |(mortgage |and |equity |components)
3. |net |income |ratio
4. |debt |coverage |ratio
5. |band |of |investment |(land |and |improvement |components)
when |developing |the |overall |capitalization |rate |from |market |comparisons, |three |critical |items |
which |must |be |highly |comparable |between |comparable |sales |and |the |subject |property |are: |- |
correct |answer |1. |land-to-improvement |ratio
2. |operating |expense |ratio
3. |remaining |economic |life
the |four |components |of |the |summation |method |of |estimating |an |overall |yield |rate |(Yo) |
[property |discount |rate] |are: |- |correct |answer |1. |safe |rate |
2. |risk |rate
3. |non-liquidity |rate |
4. |management |rate
another |name |for |the |mortgage |capitalization |rate |(RM) |is |the |- |correct |answer |mortgage |
annual |constate
the_______________ |technique |computes |a |weighted |average |of |the |mortgage |capitalization |
rate |(RM) |and |equity |capitalization |rate |(RE). |The |resulting |weighted |average |is |called |the |
overall |capitalization |rate |(Ro) |- |correct |answer |band |of |investment
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correct answers |
5 |Methods |of |developing |the |overall |capitalization |rate |(Ro) |- |correct |answer |1. |derivation |
from |comparable |sales |
2. |band |of |investment |(mortgage |and |equity |components)
3. |net |income |ratio
4. |debt |coverage |ratio
5. |band |of |investment |(land |and |improvement |components)
when |developing |the |overall |capitalization |rate |from |market |comparisons, |three |critical |items |
which |must |be |highly |comparable |between |comparable |sales |and |the |subject |property |are: |- |
correct |answer |1. |land-to-improvement |ratio
2. |operating |expense |ratio
3. |remaining |economic |life
the |four |components |of |the |summation |method |of |estimating |an |overall |yield |rate |(Yo) |
[property |discount |rate] |are: |- |correct |answer |1. |safe |rate |
2. |risk |rate
3. |non-liquidity |rate |
4. |management |rate
another |name |for |the |mortgage |capitalization |rate |(RM) |is |the |- |correct |answer |mortgage |
annual |constate
the_______________ |technique |computes |a |weighted |average |of |the |mortgage |capitalization |
rate |(RM) |and |equity |capitalization |rate |(RE). |The |resulting |weighted |average |is |called |the |
overall |capitalization |rate |(Ro) |- |correct |answer |band |of |investment