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1. Given the following information, calculate the effective gross income multipl

ID: 2675738 • Letter: 1

Question

1. Given the following information, calculate the effective gross income multiplier for the specific investment. Effective gross income = $60,000, First-year NOI = $20,000, Acquisition price = $900,000, Equity Investment = 20%.
a. 15
b. 0.067
c. 45
d. 3
e. None of the above

2. Given the following information, calculate the equity dividend rate for this investment. First-year NOI = $18,750, Before-tax cash flow = $11,440, Acquisition price = $520,000, Equity Investment = 20%.
a. 2.2%
b. 3.6%
c. 11.0%
d. 18.02%
e. None of the above

3. Given the following information, calculate the operating expense ratio for this property. Potential gross income = $120,000, Vacancy rate = 9%, Net operating income = $57,900, Operating expenses = $51,300.
a. 34%
b. 43%
c. 47%
d. 53%
e. None of the above

4. Given the following information, calculate the effective gross income multiplier for the specific investment. Effective gross income = $25,000, First-year NOI = $10,000, Acquisition price = $500,000, Equity Investment = 25%.
a. 50
b. 20
c. .05
d. 5
e. None of the above

5. Given the following information, calculate the operating expense ratio for this property. Potential gross income = $194,440, Vacancy rate = 10%, Net operating income = $40,000, Operating expenses = $70,000.
a. 33%
b. 22%
c. 36%
d. 40%
e. None of the above

6. Given the following information, calculate the effective gross income multiplier for the specific investment. Effective gross income = $49,500, First-year NOI = $18,750, Acquisition price = $520,000, Equity Investment = 20%.
a. 0.036
b. 0.095
c. 10.5
d. 27.7
e. None of the above

7. Given the following information, calculate the equity dividend rate for this investment. First-year NOI = $20,000, Before-tax cash flow = $15,000, Acquisition price = $400,000, Equity Investment = 20%.
a. 18.75%
b. 3.75%
c. 7.5%
d. 37.75%
e. None of the above

8. Given the following information, calculate the going-in capitalization rate for the specific property. First-year NOI = $20,000, Acquisition price = $200,000, Equity Investment = 25%.
a. 2.5%
b. 10.0%
c. 13.3%
d. 40%
e. None of the above

9. Given the following information, calculate the debt coverage ratio for this investment. Potential gross income = $150,000, Vacancy rate = 5%, Net operating income = $60,000, Operating expenses = $45,000, Acquisition Price = $450,000, Debt service = $50,000.
a. 0.90
b. 0.83
c. 2.85
d. 1.20
e. None of the above

10. Given the following information, calculate the equity dividend rate for this investment. First-year NOI = $20,000, Before-tax cash flow = $10,000, Acquisition price = $500,000, Equity Investment = 25%.
a. 2%
b. 4%
c. 16%
d. 8%
e. None of the above

Explanation / Answer

1)a 2)c 3)d 4)b 5)a 6)b 7)c 8)d 9)a 10)a