I. Answer true or false and comment briefly if necessary (4.5 points).

A. Debt holders generally have preferred claims on the firms assets compared to equity in- vestors.

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

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

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

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

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