BUSI 422 Read & Interact Brueggeman & Fisher Chapter 11 solutions complete answers

BUSI 422 Read & Interact Brueggeman & Fisher Chapter 11 solutions complete answers

 

The maximum current tax rate on any increase in the value of property as per tax rules of 2019 is:

 

In 1997, the capital gain tax rate for the portion of the gain due to any increase in the value of the property was lowered to 

 

Property held by a dealer ______ depreciable for tax purposes.

 

Historically, when occupancy rates decrease, rental growth tends to ______?

 

For an after tax analysis, the initial investment should be ________ .

 

Investment in real estate is considered to be ________.

 

Accumulated deprecation is the depreciation that ________.

 

The current tax rate on any increase in the value of property is:

 

The marginal tax rate is the rate at which ______ income is taxed.

 

We would expect the after tax IRR to be _______.

 

When calculating taxable income, ______.

 

If the sale price is $10,000,000 and the mortgage balance is $7,000,000, the before tax cash flow at sale is _______.

 

NOI less debt service equals _________.

 

A builder of houses would classified as which of the following?

 

The IRR is the ________.

 

What is the equity dividend rate if you purchase a property for $10,000,000 using $5,000,000 of debt and the before-tax cash flow in year 1 is $500,000?

 

Which of the following will consistently reduce NOI?

 

A property management fees will likely be calculated based on?

 

A lease that assigns a certain amount of expenses to be paid by the landlord is said to have an __________.

 

A major capital investment, such as building a new storage facility, is an ex maple of a   outlay.

 

Under a lease with an expense stop, the amount of operating expenses paid by the the owner have which of the following?

 

For investors, the future supply and demand are _________.

 

Which of the following groups perform market analysis o evaluate an investment?

 

An investor who focuses on the part of a property that is not being optimized follows which investment strategy?

 

Ownership in real estate is ________.

 

Investors and   perform market analysis to estimate supply and demand for a property type.

 

The real estate cycle refers to the ___________.

 

An investor who focuses on purchasing properties from investors having financial issues is called:

 

Funds invested by the person acquiring the property are called       .

 

An individual who intends to hold real estate for immediate resale is classified as a(n)       .

 

An investor is interested in which of the following?

 

The effective gross income will generally be        the net operating income.

 

The rate in which additional income is taxed at is the       tax rate.

 

Which of the following groups perform market analysis to evaluate an investment?

 

Equity refers to funds invested by the       .

 

The 1993 Tax Reform Act set the maximum capital gain tax rate

 

When do points on a mortgage affect taxable income?

 

Which of the following are benefits to making equity investments?

 

The real estate industry tends to be cyclical, also known as the real estate       .

 

Investing in real estate, in addition to stocks and bonds, helps investors achieve       . (Enter one word per blank.)

 

Historically, when rental growth increases, occupancy tends to       ?

 

Which of the following are facts about the real estate industry?

 

Given the following cash flows, what is the internal rate of return?

 

A major capital investment, such as building a new storage facility, is an example of a         outlay.

 

Suppose a 10 year loan has loan fees (points) of $25,000. How much is amortized each year?

 

A price increase contributes to an investor’s       .

 

The rate that makes the present value of the projected cash flows equal to the initial investment is referred to as which of the following?

 

Assume the capital gains tax rate is 15% and the tax rate due to depreciation is 25%. At sale, if price appreciation is $750,000 and accumulated depreciation is $400,000, what is the total capital gain tax?

 

The debt coverage ratio (DCR) is the ratio of                      to the mortgage payment. (Enter one word per blank.)

 

At the time of sale, the        balance must be paid.

 

Given a positive tax rate, the before-tax IRR will be         the after-tax IRR.

 

Under a lease with an expense stop, the amount of operating expenses paid by the owner have which of the following?

 

If the marginal tax rate is 28%, the before-tax IRR is 17% and the after-tax IRR is 14%, what is the effective tax rate?

 

Income from operating a hotel will fall under which of the following categories?

 

Which of the following is income from a business where the investor does not actively participate in the operation of the property?

 

Taxable income is defined as:

 

The current depreciable life for nonresidential real estate is:

 

Historically, rental growth and occupancy are         correlated.

 

Given a real estate cycle, further development is likely under what condition(s)?

 

The discount rate used to value a property is adjusted to account for what?

 

Dividends received from REITs fall into which income category?

 

True or false: Financing costs should be included in the cash flows to the equity investor.

 

What is the equity dividend rate if you purchase a property for $11,000,000 using $7,000,000 of debt and the before-tax cash flow in year 1 is $450,000?

 

The current depreciable life for residential real estate is: