/biz/ - Business & Finance

File: 83 KB, 592x592, 1480364385868.jpg [View same] [iqdb] [saucenao] [google]

Anonymous Fri Feb 24 10:19:58 2017 No.1816571 [DELETED]

Got a question for you guys. Asset pricing [not school related, btw]

The asset is an apartment building that makes 5 million per year, houses 200 people, and has 90% vacancy. Operating costs are 500k per year including maintenance.

Then i'm asked how much should someone feel comfortable buying that apartment building.

I have all the maths background to do this stuff- just never did finance courses- some terms being thrown around that i'm not sure of.

Is this supposed to be a CAPM problem? Does the vacancy rate affect the risk? Any assumptions I can make to give a more through solution to the problem?

[seems like you would just pay revenue - operating cost but... that is too simple... must be a trick]

pic quazi-related, thanks

>>	Anonymous Fri Feb 24 10:20:13 2017 No.1816572 >>1816571 10% vacancy kek

>>	Anonymous Fri Feb 24 10:20:44 2017 No.1816573 >>1816572 ** that was meant to be a correction

Advanced search
Text to find
Subject [?]Search by post subject. Leave empty for any.
Username [?]Search for user name. Leave empty for any user name.
Tripcode [?]Search for tripcode. Leave empty for any.
Email [?]Search by email. Leave empty for any.
Filename [?]Search by image filename. Leave empty for any.
From Date [?]Enter what date to start searching from. Format is YYYY-MM-DD
To Date [?]Enter what date to start searching until. Format is YYYY-MM-DD
Image hash
Search in	All Posts OPs Only
Deleted posts	Show all posts Show only deleted posts Only show non-deleted posts
Internal posts	Show all posts Show only internal posts Show only archived posts
Order	New posts first Old posts first
Capcode	All Posts Only by Users Only by Mods Only by Admins Only by Developers
Results	Posts Threads
Action	[ Simple ]