WorksheetsRHC Valuations
Total questions: 8
Worksheet time: 8mins
If you are calculating the value of properties for transferring of properties from a subsidiary to a holding company (Jumeirah transfers assets to Dubai Holding). What type of valuation would this be?
Market value
Fair value
Investment value
Which of the following valuation methods is a hybrid between the income and cost approach?
DCF
DRC
RLV
When calculating the the value using the direct capitalization method, what would the formula be?
1) Gross income
2) Long term growth rate
1) Net income
2) Discount rate
1) Gross income
2) Cap rate
1) Net income
2) Yield
When conducting a RLV valuation what is the output from capitalizing all income forecasted for the project
Construction cost
Gross development value (GDV)
Profit on cost
Residual value (RV)
If our Subject Property in Makkah is in proximity to Masjid Al Haram and our comparable listing data points are on the outskirts of the city with better quality finishes what discount and premiums would we add to our comparable data? (Tip you can select multiple correct answers)
Location discount
Location premium
Listing discount
Quality premium
Prime properties such as trophy assets (Burj Khalifa) would have a higher WACC rate when compared with other properties (labor accommodation)
True they generate more income per sqft
True they are viewed as a less risky investment
False they generate more income per sqft
False they are viewed as a less risky investment
When developing a WACC what would not be a standard source for the premiums and discounts?
Prof. Damodaran
EY publications
STR reports
Duff & Phelps
Which of the following is not a component of (TOR) Total Operating Revenue in a hotel property?
F&B
Rooms
Utilities
Spa
