For each of the factors listed below indicate whether the factor, independently, is likely to cause a particular income producing property to trade for a lower or higher CAP rate compared with an average property. For this question, no explanation is needed. Indicating “higher”, “lower” or “irrelevant” for factors a through g is sufficient. a. Lower volatility in rent prices and occupancy rates. b. Worse location c. High inflation environment d. High risk premium environment e. Market general higher than normal expected NOI growth f. Lower construction quality g. High quality tenants
For each of the factors listed below indicate whether the factor, independently, is likely to cause a particular income producing property to trade for a lower or higher CAP rate compared with an average property. For this question, no explanation is needed. Indicating “higher”, “lower” or “irrelevant” for factors a through g is sufficient. a. Lower volatility in rent prices and occupancy rates. b. Worse location c. High inflation environment d. High risk premium environment e. Market general higher than normal expected NOI growth f. Lower construction quality g. High quality tenants
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter16: Advanced Topics Concerning Complex Auditing Judgments
Section: Chapter Questions
Problem 23MCQ
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For each of the factors listed below indicate whether the factor, independently, is likely to cause a particular income producing property to trade for a lower or higher CAP rate compared with an average property. For this question, no explanation is needed. Indicating “higher”, “lower” or “irrelevant” for factors a through g is sufficient. a. Lower volatility in rent prices and occupancy rates. b. Worse location c. High inflation environment d. High risk premium environment e. Market general higher than normal expected NOI growth f. Lower construction quality g. High quality tenants
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