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CCIM 101 - FINANCIAL ANALYSIS EXAM 2025|
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
What's the biggest difference between cap rate and yield? - correct answer
- Cap rate does not factor in eventual sale proceeds - yield does. If there is
a profit on the sale then yield will be higher than cap rate.
Cap rate + growth = [XXXX]? - correct answer - Yield
True of false: Leasing commissions are included in Operating Expense? -
correct answer - False - they are included in Cash Flow Before Taxes.
What is Net Present Value? - correct answer - NPV is the difference
between the present value of cash inflows and the present value of cash
outflows over time.
True of false: For commercial and investment properties, loan costs paid at
time period zero are deducted in full in the year they are paid. - correct
answer - False - they are amortized over the full term of the loan. Any
unamortized costs are expenses in the year the loan is paid off.
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A REIT must distribute what percent of its taxable income to stockholders
every year? - correct answer - 90%
True or False: a REIT is subject to corporate-level tax on the taxable
income it distributes to stockholders. - correct answer - False. A REIT must
pay out at least 90% of its taxable income as dividends. Since those
dividends are actually the taxable portion of the income generated by the
REIT-owned properties, the company is able to pass its tax burden to
shareholders rather than pay Federal taxes itself.
What is Section 1231 property? - correct answer - Section 1231 property is
real or depreciable business property (such as a commercial building) held
for more than one year.
A section 1231 gain from the sale of a property is taxed at the lower capital
gains tax rate versus the rate for ordinary income. If the sold property was
held for less than one year, the 1231 gain does not apply.
The basis for a property that is purchased equals the purchase price plus
what? - correct answer - Plus any capitalized acquisition costs (not
financing costs.)
What are the four basic components of NOI? - correct answer - 1 -
Potential rental income (PRI)
2 - Vacancy and credit losses
3 - Other income
CCIM 101 - FINANCIAL ANALYSIS EXAM 2025|
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
What's the biggest difference between cap rate and yield? - correct answer
- Cap rate does not factor in eventual sale proceeds - yield does. If there is
a profit on the sale then yield will be higher than cap rate.
Cap rate + growth = [XXXX]? - correct answer - Yield
True of false: Leasing commissions are included in Operating Expense? -
correct answer - False - they are included in Cash Flow Before Taxes.
What is Net Present Value? - correct answer - NPV is the difference
between the present value of cash inflows and the present value of cash
outflows over time.
True of false: For commercial and investment properties, loan costs paid at
time period zero are deducted in full in the year they are paid. - correct
answer - False - they are amortized over the full term of the loan. Any
unamortized costs are expenses in the year the loan is paid off.
, Page | 2
A REIT must distribute what percent of its taxable income to stockholders
every year? - correct answer - 90%
True or False: a REIT is subject to corporate-level tax on the taxable
income it distributes to stockholders. - correct answer - False. A REIT must
pay out at least 90% of its taxable income as dividends. Since those
dividends are actually the taxable portion of the income generated by the
REIT-owned properties, the company is able to pass its tax burden to
shareholders rather than pay Federal taxes itself.
What is Section 1231 property? - correct answer - Section 1231 property is
real or depreciable business property (such as a commercial building) held
for more than one year.
A section 1231 gain from the sale of a property is taxed at the lower capital
gains tax rate versus the rate for ordinary income. If the sold property was
held for less than one year, the 1231 gain does not apply.
The basis for a property that is purchased equals the purchase price plus
what? - correct answer - Plus any capitalized acquisition costs (not
financing costs.)
What are the four basic components of NOI? - correct answer - 1 -
Potential rental income (PRI)
2 - Vacancy and credit losses
3 - Other income
