Question 1

The appraiser must be able to segment the demand in a market.

Accepted Answer

A) True 
 B)False  True

Question 2

The highest and best use for a parcel of land is always a commercial use.

Accepted Answer

A) True 
 B)False  False

Question 3

The cost approach is generally the easiest approach to complete.

Accepted Answer

A) True 
 B)False  False

Question 4

Given a debt percentage of 40 percent, a mortgage constant of .12, and a required return on equity of 16 percent, what is the overall capitalization rate?

Accepted Answer

A) 14 percent 
B) 13 percent 
C) 12 percent 
D) none of the above 
A) 14 percent 
B) 13 percent 
C) 12 percent 
D) none of the above

Question 5

A 100-room hotel achieves a 70 percent occupancy and an average rate of $60. It sells for $4,600,000. What is the gross rooms revenue multiplier?

Accepted Answer

A) 1.5 
B) 3.0 
C) 02 
D) cannot tell from information given 
A) 1.5 
B) 3.0 
C) 02 
D) cannot tell from information given

Question 6

A property with a competitive advantage within a market segment will have a penetration rate of

Accepted Answer

A) more than 100 percent. 
B) less than 100 percent. 
C) 100 percent. 
D) 50 percent or more. 
A) more than 100 percent. 
B) less than 100 percent. 
C) 100 percent. 
D) 50 percent or more.

Question 7

If the appraiser finds deferred maintenance at the property, she should

Accepted Answer

A) add it to the value of the property. 
B) subtract it from the value conclusion. 
C) increase maintenance expense in the income statement. 
D) use a higher discount rate. 
A) add it to the value of the property. 
B) subtract it from the value conclusion. 
C) increase maintenance expense in the income statement. 
D) use a higher discount rate.

Question 8

The best source for projecting operating expenses for a hotel is the financial statements of comparable hotels.

Accepted Answer

A) True 
 B)False

Question 9

If you were appraising a church, which approach to value would be best to use?

Accepted Answer

A) sales comparison approach 
B) cost approach 
C) income capitalization approach 
D) revenue multiplier 
A) sales comparison approach 
B) cost approach 
C) income capitalization approach 
D) revenue multiplier

Question 10

Which of the following is typically used in the cost approach?

Accepted Answer

A) reproduction cost 
B) replacement cost 
C) aging cost 
D) valuation cost 
A) reproduction cost 
B) replacement cost 
C) aging cost 
D) valuation cost

Question 11

Visibility and access are critical components of a hotel site analysis.

Accepted Answer

A) True 
 B)False

Question 12

The most complete interest in real estate is a fee simple interest.

Accepted Answer

A) True 
 B)False

Question 13

The fair share concept states that if a hotel represents 10 percent of room supply, it should accommodate 10 percent of market demand.

Accepted Answer

A) True 
 B)False

Question 14

Appraisals are often completed for lenders.

Accepted Answer

A) True 
 B)False

Question 15

A neighborhood is defined as an area with a wide variety of land uses.

Accepted Answer

A) True 
 B)False

Question 16

An estimate of value is good for

Accepted Answer

A) one day. 
B) one month. 
C) three months. 
D) one year. 
A) one day. 
B) one month. 
C) three months. 
D) one year.

Question 17

Employment data are not important in an appraisal because they are all historical.

Accepted Answer

A) True 
 B)False

Question 18

Biased appraisals was a significant problem in the 1980s.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT considered in a site analysis?

Accepted Answer

A) zoning 
B) location in a flood plain 
C) whether or not utilities are above ground or below ground 
D) size and topography 
A) zoning 
B) location in a flood plain 
C) whether or not utilities are above ground or below ground 
D) size and topography

Question 20

When completing the sales comparison approach, inferior properties are adjusted downward.

Accepted Answer

A) True 
 B)False

The appraiser must be able to segment the demand in a market.

The highest and best use for a parcel of land is always a commercial use.

The cost approach is generally the easiest approach to complete.

Given a debt percentage of 40 percent, a mortgage constant of .12, and a required return on equity of 16 percent, what is the overall capitalization rate?

A 100-room hotel achieves a 70 percent occupancy and an average rate of $60. It sells for $4,600,000. What is the gross rooms revenue multiplier?

A property with a competitive advantage within a market segment will have a penetration rate of

If the appraiser finds deferred maintenance at the property, she should

The best source for projecting operating expenses for a hotel is the financial statements of comparable hotels.

If you were appraising a church, which approach to value would be best to use?

Which of the following is typically used in the cost approach?

Visibility and access are critical components of a hotel site analysis.

The most complete interest in real estate is a fee simple interest.

The fair share concept states that if a hotel represents 10 percent of room supply, it should accommodate 10 percent of market demand.

Appraisals are often completed for lenders.

A neighborhood is defined as an area with a wide variety of land uses.

An estimate of value is good for

Employment data are not important in an appraisal because they are all historical.

Biased appraisals was a significant problem in the 1980s.

Which of the following is NOT considered in a site analysis?

When completing the sales comparison approach, inferior properties are adjusted downward.

Introduction

Financial Markets and Financial Instruments

Review of Financial Statements and Selected Ratios

The Relationship Between Risk and Return

Time Value of Money

Fixed Income Securities: Bonds and Preferred Stock

Common Stock

Cost of Capital

Introduction to Capital Budgeting and Cash Flow Estimation

Capital Budgeting Decision Methods

Capital Structure

Filters

Exam 11: An Introduction to Hotel Valuation

The appraiser must be able to segment the demand in a market.

The highest and best use for a parcel of land is always a commercial use.

The cost approach is generally the easiest approach to complete.

Given a debt percentage of 40 percent, a mortgage constant of .12, and a required return on equity of 16 percent, what is the overall capitalization rate?

A 100-room hotel achieves a 70 percent occupancy and an average rate of $60. It sells for $4,600,000. What is the gross rooms revenue multiplier?

A property with a competitive advantage within a market segment will have a penetration rate of

If the appraiser finds deferred maintenance at the property, she should

The best source for projecting operating expenses for a hotel is the financial statements of comparable hotels.

If you were appraising a church, which approach to value would be best to use?

Which of the following is typically used in the cost approach?

Visibility and access are critical components of a hotel site analysis.

The most complete interest in real estate is a fee simple interest.

The fair share concept states that if a hotel represents 10 percent of room supply, it should accommodate 10 percent of market demand.

Appraisals are often completed for lenders.

A neighborhood is defined as an area with a wide variety of land uses.

An estimate of value is good for

Employment data are not important in an appraisal because they are all historical.

Biased appraisals was a significant problem in the 1980s.

Which of the following is NOT considered in a site analysis?

When completing the sales comparison approach, inferior properties are adjusted downward.

Introduction

Financial Markets and Financial Instruments

Review of Financial Statements and Selected Ratios

The Relationship Between Risk and Return

Time Value of Money

Fixed Income Securities: Bonds and Preferred Stock

Common Stock

Cost of Capital

Introduction to Capital Budgeting and Cash Flow Estimation

Capital Budgeting Decision Methods

Capital Structure

Filters