Q1. List and describe briefly the three types of Taxable Income
Q2. A property is purchase for SAR15 million. Financing is obtained at a 75% loan-to-value ratio with total annual payments of SAR 1,179,000. The property produces an
NOI of SAR 1,400,000. Compute the equity dividend rate.
Q3. Karim Riskless is considering one project. He has estimated the IRR for it under three
possible scenarios and assigned probabilities of occurrence to each scenario.
INVESTMENT I
(1) (2) (3) (4) (5) (6)
Estimated Expected Deviation Squared Product
BTIRR Return (1) – (2) Deviation Probability (4) x (5)
Optimistic 15.00 ? ? ? 0.20 ?
Most Likely 10.00 ? ? ? 0.60 ?
Pessimistic 5.00 ? ? ? 0.20 ?
a. Complete the missed numbers
b. Compute the variance and the standard deviation
Sample Solution
