Valuation quiz

What is price?

• The estimated amount paid for something

• The actual amount paid for something

• The value to an investor

What is value?

• The estimated amount the market would pay for a property

• The estimation of market worth

• The amount a particular investor would pay for for a property

What is worth?

• The estimated amount the market would pay for a property

• An estimation of the price of a property

• The amount that a particular investor would pay for a property

Which of these are the five traditional methods of valuation?

• Comparable method

• Residual method

• Investment method

• Discounted cash flow method

• Depreciated replacement cost method

What is the comparable method used for? (select all that apply)

• Capital values

• Rental values

• Yields

What is the formula for investment valuation?

• CV = NI / YP

• CV = YP / NI

• CV = NI x YP

Draw the graph of a set level of income received in perpetuity (YP perp).

Draw the graph of a set level of income received in perpetuity but starting in the future (YP reversion to perp).

Draw the graph of a set level of income received for a fixed period of time and then stopping (YP single rate).

Which of these two pubs is the most valuable?

• The smaller pub

• The larger pub

• You can't tell, you would have to see their trading accounts to decide