1. Answer true or false and comment briefly if necessary

1. Debt holders generally have preferred claims on the firms assets compared to equity investors.

2. Condo A is more liquid than condo B. This means that Condo A will be easier to sell than Condo B.

3. Vacancy is taken out of a propertys cash flow after NOI.

4. A high LTV means there is a lot of debt relative to value on a property.

5. Cash returns never change over the course of a propertys life.

6. A gross lease is a lease where the landlord pays all operating expenses.

7. $100 in five years is worth less than $100 tomorrow.

8. The discount rate is used to account for inflation only.

9. If the capitalization rate is high, the property value is also high.