Chapter 13 Flashcards
1
Q
Cash on Cash Return
A
Annual Pre Tax Cash Flow/Actual Cash Invested
(NOI-Debt Service)/Equity
2
Q
WACC
A
= (Cost of Equity/Total Market Value% Cost of Equity)+ (Cost of Debt/Total Market Value% Cost of Debt)* (1-Tax Rate)
3
Q
Leverage Ratio
A
Asset Value/Equity Value
4
Q
Loan to Value
A
Loan Amount/Asset Value
in Percent form
5
Q
Non-recourse Loans
A
Loans that contain exculpatory clauses which remove the borrower from responsibility for the debt, giving the lender no recourse beyond taking possession of the collateral that secures the loan.
6
Q
Loan to Cost
A
Loan Amount/Purchase Price
