a) Net operating income is measured after property taxes.
b) Net operating income is measured before income taxes but after interest expense.
c) Net operating income is measured before interest expense.
d) Net operating income is measured after capital expenditures.
The correct answer is: d)
When valuing an entire property, and not just the equity portion in the property, we have to discount all the cash flows that would be available not just to the property owner, but to the creditors as well. Therefore, net operating income is measured before any interest charges are deducted.
Learn how fair market value is determined during a real estate appraisal and how market values are really decided by professional ...
The correct answer is b) Insider trading would include information that is material and non-public. Certainly, a poor earnings ...
The correct answer is a. I should be the the other way around: convertible bond holders can exchange their bonds for shares. ...
The correct answer is c): The operating margin is a very useful test of the efficiency of corporate management. Operating ...
- No results found.