5 Questions
Which approach to value is used in the direct capitalization approach to property valuation?
Income approach
What is the discount rate or required return used in the valuation formula?
10 year Gov't Bond Yield
What is the purpose of using a real estate pro forma?
To analyze the property's cash flows
What does the term 'cap rates' refer to in property valuation?
Capitalization rates
What is the value10 in the valuation formula?
Expected sale price at the end of 10 year holding
Test your knowledge on property valuation and investment analysis basics in the MBA Real Estate Finance & Investment class. This quiz covers topics such as real estate pro forma, cap rates, discount rates, and direct capitalization. Perfect for reviewing key concepts and ratios for property level valuation.
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