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Section B (2 Mark)

Major phases of budgeting process are:

Section B (2 Mark)

You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of Rs44,500. Four highly similar and competitive apartment properties within two blocks of the subject property have sold in the past three months. All four offer essentially the same amenities and services as the subject. All were open-market transactions with similar terms of sale. All were financed with 30-year fixed-rate mortgages using 70 percent debt and 30 percent equity. The sale prices and estimated first-year net operating incomes were as follows:

What is the indicated value of the property using direct capitalization?

Section C (4 Mark)

Read the senario and answer to the question.

Assume the following additional facts:

The Shankers have purchased a homeowner's policy (comprehensive) covering 100% of the replacement cost of their residence. This policy has a Rs. 500 deductible. Also, they have purchased a disability income policy with a 30-day elimination period and an any-occupation definition of disability.

What actions should the Shankers consider in order to improve the quality of the insurance program described above?

Section A (1 Mark)

Loans to individuals and families to finance the purchase of new homes are known as:

Section A (1 Mark)

A European call option allows the buyer to