{ "version": "2026-10-09.1", "rubric": { "version": "2026-10-09.1", "reviewed_on": "2026-10-09", "basis": "Editorial estimate of question complexity after the relevant concept has been taught. One scale across all three courses; not student error rates, time limits, exam likelihood, or a measure of student ability.", "components": { "reasoning": { "range": [ 0, 3 ], "anchors": [ "Recognize or recall one concept.", "Apply one established rule or formula.", "Compare alternatives or infer an implication.", "Evaluate interacting constraints or competing explanations." ] }, "steps": { "range": [ 0, 3 ], "anchors": [ "No calculation or dependent solution step.", "One substantive operation or decision.", "Two or three consequential operations or decisions.", "A longer dependent calculation, iterative solve, or linked cash-flow sequence." ] }, "information": { "range": [ 0, 2 ], "anchors": [ "Inputs and basis are directly specified.", "Select relevant inputs, units, denominator, or cash-flow basis.", "Reconcile timing, a table, multiple records, or conflicting constraints." ] } }, "thresholds": { "Easy": [ 0, 2 ], "Medium": [ 3, 5 ], "Hard": [ 6, 8 ] }, "rules": [ "Do not award difficulty merely for length, dollar amounts, an advanced topic name, or the number of line items added in one operation.", "Use the supplied formula or factor when given; ordinary calculator use is assumed where appropriate.", "Identical questions share a canonical rating. Changes to a stem, choices, key, or table require a fingerprint review.", "Course scope and prerequisite knowledge are independent of difficulty." ], "course_labels": { "118/128 Foundation": "Shared real estate concepts and basic property arithmetic. No discounted-cash-flow or amortization calculation is assumed. FIN118 students use these as their default practice set; FIN128 students also build on them.", "128 Finance application": "Real estate finance applications beyond the FIN118 foundation. FNCE128 formally requires FNCE121 or FNCE121S. Topic tags distinguish prior finance methods from methods introduced within FNCE128.", "143": "Entrepreneurial finance. FNCE143 formally requires FNCE121 or FNCE121S." }, "catalog_source": "https://www.scu.edu/business/finance/academics/courses/", "catalog_note": "FNCE118 is foundational, with sophomore standing or ACTG11/11A prerequisites. FNCE128 and FNCE143 require FNCE121/121S. Formal course prerequisites do not imply that every individual question tests those methods." }, "counts": { "web_mcqs": 800, "deck_only_mcqs": 6, "records": 806, "non_mcq_exercises_excluded": 3 }, "questions": [ { "id": "re-w01-s008", "canonical_id": "re-w01-s008", "bank": "re", "week": 1, "title": "Real and personal property: scenario", "prompt": "A buyer acquires a warehouse. The land and building include a permanently installed passenger elevator. The sale schedule separately lists office desks that can be removed without damaging the building. Which classification is best supported by these facts?", "fingerprint": "12a20a4933eabafa7489b744cf2b7bc5c06e901cf870e6976a26002751c787f7", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w01-s008", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 8, "answer_slides": [ 9 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s010", "canonical_id": "re-w01-s010", "bank": "re", "week": 1, "title": "Practice", "prompt": "A buyer is acquiring an owner-operated warehouse. The seller installed a passenger elevator permanently within the building and uses freestanding desks that can be removed without damage. The purchase agreement lists separate prices for both items but does not exclude the elevator from the real estate sale. The seller argues that assigning separate prices makes both items personal property. Which assessment is best supported?", "fingerprint": "4bd8b10846f4ab88a1e3f0b5e703558e0a3a651da24ea8fa4299d43edd358558", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s010", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 10, "answer_slides": [ 11 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s012", "canonical_id": "re-w01-s012", "bank": "re", "week": 1, "title": "A personal residence: scenario", "prompt": "Which statement best explains why a personal residence is treated differently from income-producing real estate in real estate finance?", "fingerprint": "edab268dd5d9acb8e2015a65c8ff178c485b070b9d347e20d3a87f2c0bcb42d5", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w01-s012", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 12, "answer_slides": [ 13 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s016", "canonical_id": "re-w01-s016", "bank": "re", "week": 1, "title": "Liquidity and a 48-hour cash need: scenario", "prompt": "An owner may need investment cash within 48 hours for an emergency. Why might direct ownership of a building be a poor match for that liquidity need?", "fingerprint": "7af32e95edceb155205d0c6a0cc7eacd6fbbdb034b4777011657995c119b5e58", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w01-s016", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 16, "answer_slides": [ 17 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s023", "canonical_id": "re-w01-s023", "bank": "re", "week": 1, "title": "A nontraded partnership interest", "prompt": "An investor buys, through a private offering, a nontraded ownership interest in a partnership that owns one apartment building. The sponsor manages the property. How is the investor’s interest classified?", "fingerprint": "c922ef98ff3339922c58b34301caf542c631877c0a1ee802c18c11da8b8a527e", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w01-s023", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 23, "answer_slides": [ 24 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s025", "canonical_id": "re-w01-s025", "bank": "re", "week": 1, "title": "Practice", "prompt": "An investor pays $180,000 for interests in an LLC that owns an apartment building. The interests are sold directly by the sponsor and have no exchange listing. The sponsor manages the property and projects quarterly cash distributions at an annual rate of 6.5% of invested capital. Distributions can be reduced or skipped. Money returned when the property sells depends on what remains after its obligations are paid; no promissory note or fixed repayment date governs the contribution. Which classification and reasoning best fit this investor's claim?", "fingerprint": "8bcf9fcbe53d6bb0ebc35771406c88ac95fe6587b105c236a32d432a96614309", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s025", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 25, "answer_slides": [ 26 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s027", "canonical_id": "re-w01-s027", "bank": "re", "week": 1, "title": "Why investment structure matters: scenario", "prompt": "Which statement best captures why the form of real estate ownership matters to investors?", "fingerprint": "308abccdb4a5ccf3fb8a2e47f6ab1f80567d92252dd8322f012548a1841abf29", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w01-s027", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 27, "answer_slides": [ 28 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s032", "canonical_id": "re-w01-s032", "bank": "re", "week": 1, "title": "Property management", "prompt": "An owner needs someone to collect rent, coordinate repairs, and track operating expenses after closing. Which service role most directly performs this work?", "fingerprint": "a8f54b31ed5b32b138fd902352b16c7254ff4863e89b811f6a06694951d864c0", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w01-s032", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s036", "canonical_id": "re-w01-s036", "bank": "re", "week": 1, "title": "Public restrictions and private rights", "prompt": "A city rule limits a site to two stories, while a recorded agreement gives a neighboring owner access across its driveway. Which statement distinguishes the two restrictions?", "fingerprint": "4d6b33ced70ae9ad272571b1b8e1fe04ef9e1533f99896b106a3a08e90560ad3", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w01-s036", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 36, "answer_slides": [ 37 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s038", "canonical_id": "re-w01-s038", "bank": "re", "week": 1, "title": "Practice", "prompt": "A city permits buildings up to three stories on a commercial parcel. A valid recorded easement separately gives the neighboring parcel a continuing right to use a driveway across it. The buyer's two-story expansion satisfies the height rule but would permanently block that driveway. The city has confirmed compliance with the height rule only. The easement has not been released or modified. Which conclusion is most accurate?", "fingerprint": "c56672d2157bf79b5e100875a28d0d5b10aeabd721386a5e5dfe4de0a8dacd5e", "score": 5, "components": { "reasoning": 2, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s038", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 38, "answer_slides": [ 39 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s041", "canonical_id": "re-w01-s041", "bank": "re", "week": 1, "title": "An easement across a loading area: scenario", "prompt": "During an active title-objection period, a title report identifies a recorded access easement across the buyer’s planned loading area. Which next action best addresses the stated risk?", "fingerprint": "063c80fcf56ff5ea3044b75ccd0a8dd6f73b5f5833b0ae038f6bde2a511a50e9", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s041", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 41, "answer_slides": [ 42 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s044", "canonical_id": "re-w01-s044", "bank": "re", "week": 1, "title": "Practice", "prompt": "An investor is considering a warehouse that is currently permitted and leased as one building. The broker projects an additional $168,000 of annual rent if the building is divided into smaller units.\nThe zoning letter says subdivision requires discretionary approval. No application has been filed. A preliminary design appears physically feasible, but there is no construction budget. The broker estimates six months for approval without supporting evidence.\nThe investor is first preparing a forecast of the existing permitted use. How should the proposed subdivision income be treated?", "fingerprint": "d1bda9bf220199e3e8160ef4d8ca1ba4eb8de241c560d4fdb996312482de3a38", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w01-s044", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 46, "answer_slides": [ 47 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s047", "canonical_id": "re-w01-s047", "bank": "re", "week": 1, "title": "Practice", "prompt": "An analyst is preparing property-level net operating income (NOI). The cash ledger contains an annual property-tax bill, mortgage interest, a complete roof replacement, acquisition escrow fees, and the owner's federal income taxes. All five amounts were paid this year. Which listed payment is an operating expense when calculating NOI?", "fingerprint": "47c702cf31dbf02ccefdfdb99c9dfa099ba2b0ecf40d3aeb1450e7192292dfdc", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s047", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 49, "answer_slides": [ 50 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-x08", "canonical_id": "re-w01-x08", "bank": "re", "week": 1, "title": "Unlevered one-year total return", "prompt": "An all-equity buyer pays $2,400,000 for a small industrial property and $60,000 of closing costs. During the next year it receives $180,000 of operating cash after all operating expenses and capital work. At year-end it sells for $2,600,000 and pays $65,000 of selling costs. There are no other cash flows or taxes. What is the one-year total return on the buyer’s entire initial cash outlay? Round to two decimal places.", "fingerprint": "96b597bafbe40975a442c4bce80f0de9b1a41c3034022063ca612eddccdc8aa2", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x08", "locations": [] }, { "id": "re-w01-x09", "canonical_id": "re-w01-x09", "bank": "re", "week": 1, "title": "Leverage and the change in equity value", "prompt": "A property is worth $5,000,000 and has $3,200,000 of mortgage debt. Its value subsequently declines to $4,550,000 while the debt balance remains unchanged. Ignore operating distributions, selling costs, taxes, and any additional contribution. By what percentage has the owner’s equity value declined? Report the loss as a positive percentage. Round to two decimal places.", "fingerprint": "20b0285142d638e0785678a8e4a99c93ef99b89802b81598c9250a0a7506395a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x09", "locations": [] }, { "id": "re-w01-s057", "canonical_id": "re-w01-s057", "bank": "re", "week": 1, "title": "A lease below market rent: scenario", "prompt": "Scenario: A buyer is evaluating two otherwise similar office buildings. Building A is vacant, unencumbered, and has many prospective tenants. Building B is fully leased for the next 8 years to a creditworthy tenant, but the lease rate is 25% below current market rent and the lease gives the tenant broad renewal rights with below-market increases to rent. Both buildings are in the same location and physical condition. Which valuation conclusion is best supported?", "fingerprint": "964a8356537fcf5e20b07d5da625dfa8e493aadd353f4322c1ee7b7d841144cf", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s057", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 59, "answer_slides": [ 60, 61 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s063", "canonical_id": "re-w01-s063", "bank": "re", "week": 1, "title": "Practice", "prompt": "Two apartment buildings have the same location quality, condition, operating risk, required return, future capital needs, and expected net sale proceeds. Forecast annual NOI is $412,000 for Building A and $376,000 for Building B, with that income difference expected to persist during the holding period. Income arrives at the same dates. Building A cost more to construct, while its buyer plans to borrow less. Which conclusion is best supported by income-based valuation?", "fingerprint": "ab839099e80427442b32637c53574c29ab7d281e254caafef7916f8774348f19", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s063", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 65, "answer_slides": [ 66 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-x10", "canonical_id": "re-w01-x10", "bank": "re", "week": 1, "title": "Comparable sales and property size", "prompt": "Three recent warehouse sales are considered equally comparable after their stated adjustments: a 40,000-square-foot building at $7,600,000, a 50,000-square-foot building at $10,000,000, and a 60,000-square-foot building at $12,600,000. The appraiser uses the simple average of the three adjusted prices per square foot. What value does that method indicate for a 45,000-square-foot subject property? Round to the nearest $100.", "fingerprint": "d922b2655e798b03c6af12ee482e0c5b79552d2a918551ad57be94bec7c83d27", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x10", "locations": [] }, { "id": "re-w01-x05", "canonical_id": "re-w01-x05", "bank": "re", "week": 1, "title": "Income-based value from a revenue bridge", "prompt": "A stabilized neighborhood retail property has $960,000 of effective gross income and $336,000 of annual operating expenses. A $72,000 roof replacement and $250,000 of debt service are listed separately. Comparable sales support a 6.50% cap rate applied to annual NOI before capital expenditures and financing. What property value does direct capitalization indicate? Round to the nearest $100.", "fingerprint": "95238017a6c181433daa8b3ac45ff0f21472207dd6a651abe6e3a0e17feac913", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x05", "locations": [] }, { "id": "re-w01-x06", "canonical_id": "re-w01-x06", "bank": "re", "week": 1, "title": "Cap rate versus equity cash yield", "prompt": "A stabilized apartment property sells for $8,400,000. Expected first-year effective gross income is $910,000 and operating expenses are $385,000. The buyer also incurs $168,000 of acquisition costs and borrows $5,040,000. No acquisition cost is included in the sale price. What going-in NOI cap rate is implied by the property sale price? Round to two decimal places.", "fingerprint": "2f661fceea2d90b5973fb6bc3fab43467a23927212384cbf092c111b53e9f7db", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x06", "locations": [] }, { "id": "re-w01-x07", "canonical_id": "re-w01-x07", "bank": "re", "week": 1, "title": "Required income at a proposed price", "prompt": "A buyer is considering a $7,250,000 offer for a stabilized warehouse. Its pricing policy requires a 7.20% going-in cap rate on the purchase price. Verified annual effective gross income is $760,000, and a preliminary operating budget is $210,000. There are no expense reimbursements outside EGI. What is the highest annual operating expense budget consistent with the required cap rate at that price? Round to the nearest $100.", "fingerprint": "67a22f0b266ff1331d62ddc702ac68607941ed6add13dbeec4c3ad28c590eb59", "score": 5, "components": { "reasoning": 2, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x07", "locations": [] }, { "id": "re-w01-s069", "canonical_id": "re-w01-s069", "bank": "re", "week": 1, "title": "Higher cash flows and present value", "prompt": "Two otherwise identical properties have the same risk, cash-flow timing, and expected sale proceeds. Property A has reliably higher net operating cash flows during the holding period. What follows from income-based valuation?", "fingerprint": "a817f4601f041e242bcbf02f74570b995c15efeb8be7ae42e0f20dcd8571cc91", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w01-s069", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 71, "answer_slides": [ 72 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s071", "canonical_id": "re-w01-s071", "bank": "re", "week": 1, "title": "Same NOI, different prospects: scenario", "prompt": "Two properties have the same verified current NOI. Property A has stronger tenants, longer remaining lease terms, and better-supported rent growth; Property B has near-term rollover and weaker tenant credit. Which valuation conclusion is best supported?", "fingerprint": "2237ff020505dec35d8ef42f31607b32113b62ffdc602af39acede2894b7d248", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s071", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-x01", "canonical_id": "re-w01-x01", "bank": "re", "week": 1, "title": "Mixed-unit gross potential rent", "prompt": "An apartment property has 24 studios with monthly market rent of $1,725 and 36 one-bedroom units with monthly market rent of $2,150. Five studios are vacant. The owner expects $27,600 of parking revenue and $18,000 of concessions during the year. Gross potential rent assumes that every apartment is leased at market rent for all 12 months. What is annual gross potential rent, excluding parking? Round to the nearest dollar.", "fingerprint": "a7f5f4d4e46072334bb45be53d59b7b8d4afddbb15ccc65b8e19cc8f5e7af81b", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x01", "locations": [] }, { "id": "re-w01-x02", "canonical_id": "re-w01-x02", "bank": "re", "week": 1, "title": "Partial-year base rent", "prompt": "An industrial tenant leases 18,000 rentable square feet at $28 per square foot per year. Its lease starts March 1. March and April are free of base rent, but the tenant occupies the property throughout the lease period. The tenant pays all later monthly base rent on time. The landlord also receives a refundable $42,000 security deposit and $30,000 of expense reimbursements. What base rent is collected from this tenant during the calendar year? Round to the nearest dollar.", "fingerprint": "872043500cd5307d3a544679b5893d48e58e53f7d30c88e0baaceb6f2c02e442", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w01-x02", "locations": [] }, { "id": "re-w01-s076", "canonical_id": "re-w01-s076", "bank": "re", "week": 1, "title": "Gross potential rent", "prompt": "A multifamily property has 120 leasable apartment units. Market rent is $1,850 per unit per month. The property is currently 94% occupied, and management expects 2% collection loss. What is the property’s annual gross potential rent (GPR)?", "fingerprint": "fb64c85de0dcc3fccf8df73efb73c1772307d7e3380a13cba50c87ccde51a485", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s076", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 78, "answer_slides": [ 79 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s078", "canonical_id": "re-w01-s078", "bank": "re", "week": 1, "title": "Practice", "prompt": "An apartment building has 18 one-bedroom units with monthly market rent of $1,850 each and 10 two-bedroom units with monthly market rent of $2,425 each. Three one-bedroom units are currently vacant. Management expects $16,200 in annual parking income and has budgeted $142,000 in operating expenses. Assume these monthly market rents remain unchanged for the full year. What is the building's annual gross potential rent (GPR)?", "fingerprint": "5063cf9eae7133882968e9aa0f5e638985b21a9cb1dcb6eb3e382be5a4117193", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s078", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 80, "answer_slides": [ 81 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s080", "canonical_id": "re-w01-s080", "bank": "re", "week": 1, "title": "Two months of free base rent", "prompt": "A tenant leases 12,000 square feet at $36 per square foot annually. The tenant occupies the space all year and receives two months of free base rent. Assume all remaining base rent is collected. Other charges are not abated. What Year 1 base rent is collected?", "fingerprint": "bba610632493c69bd518a9651d2d1a85f108e9ac024ccd4ccf83d39d1f7f081b", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s080", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 82, "answer_slides": [ 83 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s082", "canonical_id": "re-w01-s082", "bank": "re", "week": 1, "title": "Practice", "prompt": "A tenant leases 14,400 rentable square feet at an annual base rent of $32 per square foot. The lease begins April 1, and rent is paid monthly through December 31 of the same calendar year.\nApril and May are free of base rent.\nThe landlord separately collects $42,000 of expense reimbursements during the year.\nThe tenant also pays a refundable $38,400 security deposit.\nThe tenant makes every required payment. How much base rent does the landlord collect during this calendar year?", "fingerprint": "7711384cc844522256374f1285de7e5a04e16588ef51e1cbb76ce3abf23f9795", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w01-s082", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 84, "answer_slides": [ 85 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s084", "canonical_id": "re-w01-s084", "bank": "re", "week": 1, "title": "Practice", "prompt": "A property's annual gross potential rent at market rent is $541,600. The forecast separately lists $19,600 of loss to lease, $32,400 of vacancy loss, $8,100 of credit and collection loss, and $9,600 of concessions. These amounts do not overlap, and none has already been deducted. Other property income is $18,000, and operating expenses are $160,000. What is the property's annual net rental revenue?", "fingerprint": "f9c4fdcf357d4225a005f133745ad93b593fbee9b501fbb539b799b973ab0cfa", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s084", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 86, "answer_slides": [ 87 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-x04", "canonical_id": "re-w01-x04", "bank": "re", "week": 1, "title": "Collected other income", "prompt": "A 72-unit property sells 44 parking permits at $90 per month and leases 18 storage lockers at $55 per month. All permits and lockers are paid for 12 months. It also earns $9,600 in nonrefundable application fees. A separate $36,000 of refundable security deposits is collected, and an owner contributes $80,000 for repairs. What annual other property income should the revenue forecast include? Round to the nearest dollar.", "fingerprint": "f3877fcdab7d0ec8ce636e9bfd35802effdbc495e4e112ca5a3d56d984d9fafd", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x04", "locations": [] }, { "id": "re-w01-s088", "canonical_id": "re-w01-s088", "bank": "re", "week": 1, "title": "Annual other income", "prompt": "An 80-unit apartment property earns income beyond base rent from the following sources:\n• Parking fees: 50 spaces at $65 per month- Pet rent: 20 units at $35 per month- Storage lockers: 15 lockers at $40 per month- Annual application and administrative fees: $8,400 per year- Utility reimbursements/RUBS: $72,000 per year Assume all monthly charges apply for 12 months and the stated amounts are collected. What is the property’s annual Other Income?", "fingerprint": "e474a57945b8744a256e29ba76d1899a28cca390bf7942bd111ab2511562af83", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s088", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 90, "answer_slides": [ 91 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-x03", "canonical_id": "re-w01-x03", "bank": "re", "week": 1, "title": "Revenue bridge without overlapping deductions", "prompt": "A multifamily forecast starts with $1,080,000 of annual gross potential rent. It separately identifies $48,000 of loss to lease, $62,000 of vacancy, $14,000 of credit loss, and $21,000 of concessions. These deductions do not overlap. Collected other property income is $57,000. A $25,000 tenant deposit is refundable, and $110,000 of mortgage principal is repaid during the year. What is effective gross income? Round to the nearest dollar.", "fingerprint": "0178fab0b6adbf4cab5ae9b7a6d5780edc443fcdb28b4b8dba1fa343d2724b1f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x03", "locations": [] }, { "id": "re-w01-s093", "canonical_id": "re-w01-s093", "bank": "re", "week": 1, "title": "Effective gross income: the basics", "prompt": "An apartment property has annual potential rent of $100,000, vacancy and collection loss of $5,000, and other property income of $2,000. What is effective gross income?", "fingerprint": "863928a937f67c4b6806d02b91a8b435fa8abf11f8a58787ed74f2ec532204bb", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w01-s093", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 95, "answer_slides": [ 96 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s095", "canonical_id": "re-w01-s095", "bank": "re", "week": 1, "title": "Cedar Lane", "prompt": "Cedar Lane has 18 apartments, each at $1,800 per month. Vacancy and collection loss equals 7% of annual gross potential rent. Other annual income is $12,000. What is annual effective gross income?", "fingerprint": "39d8c577fc2f8431037e0303920b6dfd95f559f71212266c695d7c6b1dfadac4", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s095", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 97, "answer_slides": [ 98 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s097", "canonical_id": "re-w01-s097", "bank": "re", "week": 1, "title": "Effective gross income: 100 units", "prompt": "A 100-unit apartment property has market rent of $2,100 per unit per month. The analyst identifies the following annual revenue adjustments:\n• General vacancy: 4.0% of GPR- Loss to lease: $72,000- Credit loss: 1.5% of GPR- Concessions: $18,000- Other income: $135,000Assume the rental adjustments are separate and nonoverlapping. What is the property’s annual effective gross income (EGI)?", "fingerprint": "5640dc6fe3291ada76e6892768d29850d2c98fac89eef149f6e309364ea68ff1", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s097", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 99, "answer_slides": [ 100 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s099", "canonical_id": "re-w01-s099", "bank": "re", "week": 1, "title": "Practice", "prompt": "A 150-unit apartment property has a market rent of $1,900 per unit per month. Estimated annual revenue adjustments:\nGross Potential Rent (GPR) assumes all units leased at market rent for the full year. Assume the rental adjustments are separate and nonoverlapping.\nVacancy loss: 5.0% of GPR\nLoss to lease: $95,000\nCredit loss: 1.0% of GPR\nConcessions and free rent: $30,000\nOther income: $180,000\nWhat is the property’s annual effective gross income (EGI)?", "fingerprint": "2bd52f9dd80c0d4b7ddeb36e37a8877acbde0874b57b8db36b3eb3aa8f4f0f12", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-s099", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 101, "answer_slides": [ 102 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-x11", "canonical_id": "re-w01-x11", "bank": "re", "week": 1, "title": "Operating expenses versus capital and financing", "prompt": "A property produces $725,000 of effective gross income. Its annual payments include $94,000 of property taxes, $28,000 of insurance, $53,000 of routine maintenance, and $36,000 of property management fees. It separately pays $120,000 for a full roof replacement, $210,000 of mortgage debt service, and $17,000 of the owner’s income taxes. What is property NOI before reserves and capital expenditures? Round to the nearest dollar.", "fingerprint": "fc25ef03d97ce828bc17b55d2c6633672925205854ddcc9b726884297f271baa", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w01-x11", "locations": [] }, { "id": "re-w01-s106", "canonical_id": "re-w01-s106", "bank": "re", "week": 1, "title": "Fixtures after a property sale", "prompt": "A commercial building is sold after foreclosure. The purchase agreement is silent about personal property. Which item is most likely to transfer with the real estate as part of the real property?", "fingerprint": "a4cd1cd7ca79c8f013c93b9772d5cbc4d952865a1f6ce7bde782ade11c67c19c", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w01-s106", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 108, "answer_slides": [ 109 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w01-s108", "canonical_id": "re-w01-s108", "bank": "re", "week": 1, "title": "An elevator and movable desks", "prompt": "A warehouse sale includes land and its permanently installed passenger elevator. Office desks are separately listed as movable equipment. Which classification best fits these stated facts?", "fingerprint": "8f0bcff4a907283fb38c53dbdd28111e302bb46c3f37a167313608d67e17f4cf", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w01-s108", "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 110, "answer_slides": [ 111 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s004", "canonical_id": "re-w02-s004", "bank": "re", "week": 2, "title": "Identify the property type", "prompt": "A property owner is underwriting an asset with the following lease terms:\nTenants pay base rent plus expense reimbursements.\nSome tenants pay percentage rent based on gross sales thresholds.\nAnchor tenants drive traffic and receive favorable long-term leases.\nWhat property type is this lease structure most likely associated with?", "fingerprint": "0d94ce40529d8e6365c77277088010aa653fbb3c76932d064f0071fc470a11a5", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s004", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 4, "answer_slides": [ 5 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s010", "canonical_id": "re-w02-s010", "bank": "re", "week": 2, "title": "Recognize a counteroffer", "prompt": "A buyer sends a written offer to purchase a small industrial building for $5 million, identifying all key terms. The seller signs but changes the price to $5.3 million before returning it. The buyer does not agree.\nWhich statement is most accurate?", "fingerprint": "233658caaeb96747d0e262076ac9029785f7daa8118c19b2dca098e5935684c7", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s010", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 10, "answer_slides": [ 11 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s012", "canonical_id": "re-w02-s012", "bank": "re", "week": 2, "title": "Transfer instruments: the scenario", "prompt": "A real estate investor signs a purchase agreement to acquire a 40,000-square-foot industrial building for $8 million. Closing is scheduled for 60 days later. Before closing, the seller signs a five-year lease with a logistics company for 10,000 square feet in the building.\nAssume both agreements are otherwise valid. Which statement best describes their legal effect?", "fingerprint": "786f7995b78f60b73da304db4058703afec9cdc3657dccd5bbe4d43854592f8c", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s012", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 12, "answer_slides": [ 13 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s014", "canonical_id": "re-w02-s014", "bank": "re", "week": 2, "title": "Practice", "prompt": "A design firm signs a valid three-year lease for an office suite. The lease permits office use, requires written landlord consent before assignment or subletting, and grants no purchase option. The tenant pays six months of rent in advance and installs its own removable desks. It later wants to convert the suite into a restaurant and transfer the remaining term without consent. Assume the lease terms are enforceable. Which statement best describes the tenant's rights?", "fingerprint": "19d5e4dc154b16feb7e4c5a51d6d80ad7bfa224898bc35e7f745d8f4a3fdb0e5", "score": 5, "components": { "reasoning": 2, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s014", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 14, "answer_slides": [ 15 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s017", "canonical_id": "re-w02-s017", "bank": "re", "week": 2, "title": "Preserve the inspection option: scenario", "prompt": "A purchase agreement gives the buyer the right to terminate and recover its deposit only if written notice is delivered before the inspection deadline. A material defect is discovered one day before the deadline.\nWhat action best preserves the buyer’s contractual option?", "fingerprint": "b3c93411685cadc8de26eadc45bbc7fe688a874c417d3ee10d16e318de827b80", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w02-s017", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 17, "answer_slides": [ 18 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s019", "canonical_id": "re-w02-s019", "bank": "re", "week": 2, "title": "Practice", "prompt": "A buyer is completing due diligence on a warehouse. The purchase agreement states that:\nThe buyer may terminate and recover its $95,000 deposit by delivering written termination notice to the seller's designated email address by 5:00 p.m. Friday.\nAny extension must be signed by both the buyer and seller before that deadline.\nOn Thursday, an inspection identifies a roof defect. The repair estimate will arrive Monday. The broker says the seller is willing to discuss an extension, but nothing has been signed. The buyer wants to review the estimate without losing the right to recover the deposit.\nWhich action best protects the buyer under these terms?", "fingerprint": "33bcb395baf66df7da2bcc63bd23f4543b1869dca2ae004c6646f83a90823140", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-s019", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 19, "answer_slides": [ 20 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s022", "canonical_id": "re-w02-s022", "bank": "re", "week": 2, "title": "Identify the remedy being sought", "prompt": "A buyer signs a valid contract for a unique office building. The seller refuses to close after getting a higher offer. The buyer argues money is insufficient because the property is uniquely valuable to their strategy.\nWhich remedy is the buyer most likely seeking?", "fingerprint": "4d830f756965ddd8f1f4a92e19153da8304fdf150a5114524d9ba3c34400c3c2", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w02-s022", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 22, "answer_slides": [ 23 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-x01", "canonical_id": "re-w02-x01", "bank": "re", "week": 2, "title": "Closing cash with a credited deposit", "prompt": "A buyer agrees to pay $3,600,000 for an office property. Additional uses at closing are $72,000 of acquisition costs, $180,000 of immediate repairs, and $90,000 of initial reserves. The lender disburses $2,340,000, and a $120,000 earnest-money deposit already paid by the buyer is credited toward the purchase price. There are no loan fees or other adjustments. How much additional cash must the buyer wire at closing? Round to the nearest dollar.", "fingerprint": "e5bb8784cb10486f8aa0cb47d99ac5655ba5eb444a35f1c459c52c2718a588c7", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-x01", "locations": [] }, { "id": "re-w02-s030", "canonical_id": "re-w02-s030", "bank": "re", "week": 2, "title": "Calculate the buyer’s cash contribution", "prompt": "A property costs $500,000, and closing costs are $10,000. A loan provides $350,000. With no other initial costs or funding sources, how much cash must the buyer contribute at closing?", "fingerprint": "695e27c8b42298c331894fa9220bd94daf2be66be1f142d337e92cf8adc074c1", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w02-s030", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 30, "answer_slides": [ 31 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s032", "canonical_id": "re-w02-s032", "bank": "re", "week": 2, "title": "Identify the right granted by a lease", "prompt": "A tenant signs a 12-month apartment lease rather than buying a condominium. What right does the lease ordinarily grant during its stated term?", "fingerprint": "291b6b7674959b47e3a755f2c64df870ceaf9186056ece171d066444d8e5dc39", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w02-s032", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s035", "canonical_id": "re-w02-s035", "bank": "re", "week": 2, "title": "Follow the cost risk in a gross lease: scenario", "prompt": "A gross lease requires the landlord to pay property taxes, insurance, and routine maintenance. Rent is fixed for the year, and the lease has no reimbursement clause. Those operating costs unexpectedly increase.\nWho initially bears the economic effect?", "fingerprint": "7c384cbd237fe08f0efe24ce0232ebfd052a0e106e7c8a9ae2e20c7bfa3cd416", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w02-s035", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 35, "answer_slides": [ 36 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s037", "canonical_id": "re-w02-s037", "bank": "re", "week": 2, "title": "Practice", "prompt": "A broker's brochure calls a small office building's leases \"net leases.\" The executed leases, however, fix rent through December and require the landlord to pay property taxes, insurance, and routine maintenance without reimbursement or a current-year rent adjustment. Insurance and maintenance costs rise unexpectedly during the year. The mortgage rate is fixed, and neighboring asking rents are increasing. Assuming no other changes, which assessment of the current-year effect is correct?", "fingerprint": "32f349a4f0de58f128f55f8a08ef3dc5150f7ce265fa6befe5f0783dcf2458d9", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s037", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 37, "answer_slides": [ 38 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s039", "canonical_id": "re-w02-s039", "bank": "re", "week": 2, "title": "Alternate gross-lease question", "prompt": "A gross lease requires the landlord to pay property taxes, insurance, and routine maintenance. With rent fixed for the year and no reimbursement clause, who initially bears an unexpected increase in those costs?", "fingerprint": "fa8f3405429f6622d788b489f758a179a14c52bcfbb1a7a831028610158460d9", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w02-s039", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 39, "answer_slides": [ 40 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-x04", "canonical_id": "re-w02-x04", "bank": "re", "week": 2, "title": "Percentage rent above a breakpoint", "prompt": "A retail lease requires $180,000 of annual base rent plus 6% of annual store sales above an explicit $3,200,000 breakpoint. Annual sales are $4,500,000. Expense reimbursements of $42,000 are billed separately and are fully collected. There are no concessions. What total base and percentage rent is due, excluding reimbursements? Round to the nearest dollar.", "fingerprint": "fdb767b31a49d0db8a29891853b43c5f4fdaac8a7db63b86cbd522ac56aa8b18", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-x04", "locations": [] }, { "id": "re-w02-x05", "canonical_id": "re-w02-x05", "bank": "re", "week": 2, "title": "Rentable area and concessions", "prompt": "A tenant requires 9,000 usable square feet. The lease’s rentable area equals usable area multiplied by 1.18. Annual base rent is $42 per rentable square foot. The lease begins January 1 and grants the first three months free of base rent. All remaining rent is collected; no other rent adjustment applies. What first-year base rent is collected? Round to the nearest dollar.", "fingerprint": "29667628d4f76da6e43341710f353e71908b059ead5ac12485b3f91ad91913d8", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-x05", "locations": [] }, { "id": "re-w02-x02", "canonical_id": "re-w02-x02", "bank": "re", "week": 2, "title": "Expense stop and pro rata recovery", "prompt": "An office tenant occupies 12,000 of a building’s 60,000 rentable square feet. The lease requires the tenant to reimburse its area share of recoverable building operating expenses above a $450,000 annual expense stop. Actual recoverable expenses are $570,000. The lease has no cap, gross-up, exclusions, or minimum charge, and all amounts are collected. What is the tenant’s annual reimbursement? Round to the nearest dollar.", "fingerprint": "cbbfcd8c5f01af6e6048e3327b81938eb21fe685701f5d464bb71899492421a9", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-x02", "locations": [] }, { "id": "re-w02-x03", "canonical_id": "re-w02-x03", "bank": "re", "week": 2, "title": "Capped expense reimbursement", "prompt": "A retail tenant’s prior-year CAM reimbursement was $80,000. This year its uncapped share of recoverable CAM would be $94,000. The lease limits this year’s reimbursement to 5% above the prior-year reimbursement, with no cumulative catch-up, exclusions, or separate charges. The tenant pays the maximum allowed by the lease. How much of this year’s allocated CAM remains unreimbursed to the landlord? Round to the nearest dollar.", "fingerprint": "4b91ebe71101e1d8a230b10d64a4ee844656c80f7e9d50443ee110fb0042c6d5", "score": 5, "components": { "reasoning": 2, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-x03", "locations": [] }, { "id": "re-w02-s044", "canonical_id": "re-w02-s044", "bank": "re", "week": 2, "title": "Practice", "prompt": "A broker describes an office lease as a gross lease. The signed agreement requires the tenant to reimburse increases in insurance above the base-year amount. Routine maintenance remains entirely the landlord's responsibility.\nInsurance rises from $24,000 to $29,000, and maintenance rises from $16,000 to $19,000. The tenant pays the full required insurance reimbursement during the same year. Base rent and all other income and expenses remain unchanged.\nCompared with the base year, what happens to annual NOI?", "fingerprint": "53dde46ed0e1c8af08d6237bd277cc9b3a152c4e39f55e39c219a15d12c83da1", "score": 5, "components": { "reasoning": 2, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s044", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 44, "answer_slides": [ 45 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s046", "canonical_id": "re-w02-s046", "bank": "re", "week": 2, "title": "Apply an annual expense stop", "prompt": "A 12,000-square-foot lease has a $9 per square foot annual expense stop. Eligible annual expenses allocated to this tenant’s space total $132,000 and are fully collectible from the tenant above the stop.\nWhat reimbursement is due?", "fingerprint": "2a24a8211e0292987041f65ff8eb0469119a8cc786c9fa514e90735337aadc3f", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w02-s046", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 46, "answer_slides": [ 47 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s048", "canonical_id": "re-w02-s048", "bank": "re", "week": 2, "title": "Practice", "prompt": "An office tenant occupies 18,000 square feet in a 100,000-square-foot building. Eligible building expenses are allocated to the tenant in proportion to its share of the building's area. The landlord covers the first $3.50 per square foot of the tenant's space in that allocated amount; the tenant reimburses any excess.\nThe building's annual expense report totals $510,000, including a $90,000 roof replacement. The lease excludes capital replacements from the reimbursable expense pool. All other reported expenses are eligible. There are no caps or other adjustments.\nWhat is the tenant's expense reimbursement for the year?", "fingerprint": "23789c10a59e678a95042c7584fd6beeb8d3a9b54f6623774f6a0955c7dea595", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-s048", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 48, "answer_slides": [ 49 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-x06", "canonical_id": "re-w02-x06", "bank": "re", "week": 2, "title": "First-year lease cash after TI", "prompt": "An owner receives $246,000 of base rent and $32,000 of collected expense reimbursements from an office suite during Year 1. Operating costs attributable to the suite are $81,000. The owner also pays a $95,000 tenant improvement allowance and a $24,000 leasing commission in Year 1. No debt service or other cash item is allocated to the suite. What first-year cash flow remains after these lease-related uses? Round to the nearest dollar.", "fingerprint": "f5f8312492db9620ab4409ff4d6b14655c3cf1eb6fddf0bf5c5f9027caf3e2fb", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-x06", "locations": [] }, { "id": "re-w02-s053", "canonical_id": "re-w02-s053", "bank": "re", "week": 2, "title": "Select the evidence for expense recoveries: scenario", "prompt": "A rent roll lists a tenant’s annual rent and shows an expense stop. The executed lease includes exclusions and timing rules. A signed amendment grants a temporary concession that applies during the forecast year.\nWhich method best estimates reimbursable expenses due under the lease during that year?", "fingerprint": "e188b76535683ba42287029dd6ad9842ff4fbe17e15921049c85235be27796fa", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s053", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 53, "answer_slides": [ 54 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s055", "canonical_id": "re-w02-s055", "bank": "re", "week": 2, "title": "Practice", "prompt": "An analyst is reviewing an office tenant's first-year cash flow. Three documents contain different information:\nThe broker's rent roll describes the lease as “fully reimbursable.”\nThe signed lease excludes capital replacements from reimbursable expenses.\nA signed amendment grants two months of free base rent and states that expense reimbursements continue during those months.\nThe owner plans to replace the roof in the first year. No later amendment changes these terms.\nHow should the analyst model the tenant's payments?", "fingerprint": "7ddc6b150c95bcc88aaf9c487c9519bd2467d3fb5c3a81425be67a094e52c799", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-s055", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 55, "answer_slides": [ 56 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s058", "canonical_id": "re-w01-s093", "bank": "re", "week": 2, "title": "Calculate effective gross income", "prompt": "An apartment property has annual potential rent of $100,000, vacancy and collection loss of $5,000, and other property income of $2,000. What is effective gross income?", "fingerprint": "863928a937f67c4b6806d02b91a8b435fa8abf11f8a58787ed74f2ec532204bb", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w02-s058", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 58, "answer_slides": [ 59 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s060", "canonical_id": "re-w02-s060", "bank": "re", "week": 2, "title": "Practice", "prompt": "For one calendar year, an apartment property's rent schedule shows $286,000 of potential rent before vacancy and collection losses. Vacancy loss is $17,200 and collection loss is a separate $4,600; neither has already been deducted. Expected parking and laundry income totals $9,800 after any losses. The owner also receives $6,000 of fully refundable tenant security deposits and pays $64,000 of property operating expenses. What is effective gross income for the year?", "fingerprint": "6e63b524a95648988b7a256b6f833c36ebd4962c8a06316b067ed32ed16f5ea5", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s060", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 60, "answer_slides": [ 61 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-x07", "canonical_id": "re-w02-x07", "bank": "re", "week": 2, "title": "Underwritten NOI normalization", "prompt": "A building’s reported $408,000 NOI includes a one-time $34,000 insurance recovery as operating income and a $52,000 full roof replacement as an operating expense. The replacement is a capital expenditure. The report omitted a recurring $18,000 property management fee. All other revenue and operating expenses are representative of a stabilized year. What normalized NOI should an analyst use before capital expenditures? Round to the nearest dollar.", "fingerprint": "ce8e8ee0306c0b37d1492c033b477ff682f64aedf0c8ff2da6cfe96060cec63d", "score": 5, "components": { "reasoning": 2, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-x07", "locations": [] }, { "id": "re-w02-s064", "canonical_id": "re-w02-s064", "bank": "re", "week": 2, "title": "Classify an operating expense", "prompt": "Which annual cash expense is deducted in the simplified property NOI calculation?", "fingerprint": "f12c8b35338606a4f33ffc343b8fd27b6b0abc9d28a780c960b1f4d0cd2e4e65", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w02-s064", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 64, "answer_slides": [ 65 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s066", "canonical_id": "re-w02-s066", "bank": "re", "week": 2, "title": "Calculate NOI before capital and debt", "prompt": "An independent property has annual EGI of $410,000 and operating expenses of $145,000, including property taxes. Annual capital spending is $25,000 and debt service is $125,000. What is NOI?", "fingerprint": "98d92c9d070e4625aeb7c0d168bcabd72466290fadca29a702552278d1679d7e", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s066", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 66, "answer_slides": [ 67 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s068", "canonical_id": "re-w02-s068", "bank": "re", "week": 2, "title": "Practice", "prompt": "A retail property's annual effective gross income is $218,400, already net of vacancy and collection losses. Its ledger lists $28,600 of property taxes, $12,400 of property insurance, $16,800 of routine repairs, and $10,200 of property management fees. It also shows $42,000 of annual debt service, including $9,000 of principal, and $18,000 for a complete roof replacement. There are no other operating expenses. What is the property's annual NOI?", "fingerprint": "fc4623605897965dfb16a212e30b41dfeaac124970d96f626aff39804138e212", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s068", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 68, "answer_slides": [ 69 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s070", "canonical_id": "re-w02-s070", "bank": "re", "week": 2, "title": "Include reimbursements and exclude capital and debt", "prompt": "A property generates annual base rent of $400,000, tenant reimbursements of $30,000, and other property income of $15,000. Annual operating expenses are $150,000, capital expenditures are $35,000, and debt service is $190,000.\nAssume the stated income is collected, with no further vacancy, credit-loss, or concession adjustment. What is the property’s annual NOI?", "fingerprint": "794626627d79f15f01000fc933fa926ac1f0aedbd0ddedd470d9ed1fd02a9512", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s070", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 70, "answer_slides": [ 71 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s072", "canonical_id": "re-w02-s072", "bank": "re", "week": 2, "title": "Alternate NOI question: original FIN128 version", "prompt": "A property collects annual base rent of $400,000, reimbursements of $30,000, and other income of $15,000. Annual operating expenses are $150,000, capital spending is $35,000, and debt service is $190,000.\nWhat is NOI?", "fingerprint": "e75e43ea0643898e508a793f873f3ab9acd021db143204dbba251b4c800ae8f3", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s072", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 72, "answer_slides": [ 73 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s074", "canonical_id": "re-w02-s074", "bank": "re", "week": 2, "title": "Practice", "prompt": "An office property's annual operating report contains the following amounts:\nThe $190,000 of operating expenses excludes every other listed item. There are no other revenues or expenses.\nWhat is the property's net operating income, or NOI, before capital spending and financing costs?", "fingerprint": "b6bf86afd51f35174d1eebd1f8330ef466debd9b5067e80c58f86bcc69ae0cf4", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-s074", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 74, "answer_slides": [ 75 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s076", "canonical_id": "re-w02-s076", "bank": "re", "week": 2, "title": "Match a recovery with its expense", "prompt": "A lease requires the tenant to reimburse the full amount of a specified property operating cost. The cost increases by $6,000, and the tenant reimburses the full $6,000 in the same period.\nHolding everything else constant, what happens to the landlord’s NOI?", "fingerprint": "6700d9151ec5ea5fb98616b462dfed705241418f6f6e1734d0ad2162ad01eeee", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w02-s076", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 76, "answer_slides": [ 77 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s078", "canonical_id": "re-w02-s078", "bank": "re", "week": 2, "title": "Keep a temporary concession in the right year", "prompt": "A lease gives a tenant two months of free base rent only in Year 1. Scheduled base rent is $432,000 per year. A model subtracts the same concession again in Year 2, even though Year 2 has no concession.\nHolding other income and expenses constant, what is the Year 2 effect?", "fingerprint": "37fae617a96ca55388f29fadf5a09be37634d5da62aa6b2f65a9294c46994c33", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s078", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 78, "answer_slides": [ 79 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s080", "canonical_id": "re-w02-s080", "bank": "re", "week": 2, "title": "Practice", "prompt": "An analyst is underwriting a 100-unit apartment property with annual EGI of $2,209,500. The analyst identifies these annual costs:\nWith replacement reserves shown below NOI, what is annual NOI?", "fingerprint": "901204d24c40feb78d0b4ceb01d5099cfde5cef67bff82ccbe0b9a9c00cf8da6", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-s080", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 80, "answer_slides": [ 81 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s083", "canonical_id": "re-w02-s083", "bank": "re", "week": 2, "title": "Interpret the operating expense ratio", "prompt": "In this independent Ridgeline Terrace OER scenario, annual gross potential rent is $4,000,000, EGI is $2,209,500, and operating expenses are $711,075.\nWhat is the property’s operating expense ratio, and what does it indicate?", "fingerprint": "9293d19ab0801bd673a42d916fd13df03362487c004972e08f4d2b257cf394f6", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s083", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 83, "answer_slides": [ 84 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s085", "canonical_id": "re-w02-s085", "bank": "re", "week": 2, "title": "Calculate and interpret the going-in cap rate: scenario", "prompt": "In this independent Ridgeline Terrace cap-rate scenario, annual gross potential rent is $5,000,000, vacancy is 1%, and first-year NOI is $1,498,425. An investor is considering purchasing the property for $25,000,000.\nWhich calculation and interpretation of the property’s going-in capitalization rate is most accurate?", "fingerprint": "c70553b85b79a462bfd888c2e5faeac3d4a5af66f63f82bf4d7166f5c95c4bff", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s085", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 85, "answer_slides": [ 86 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-x08", "canonical_id": "re-w02-x08", "bank": "re", "week": 2, "title": "Present value of a future capital obligation", "prompt": "A property owner must pay $425,000 for a scheduled elevator replacement exactly four years from today. A segregated reserve can earn a guaranteed 5.00% effective annual return, compounded annually. There will be no additional deposits or withdrawals before the replacement. How much must the owner place in the reserve today to fund the payment in full? Round to the nearest $100.", "fingerprint": "8cbd2773ab96dffcb52f6a4494618b0bbcb67cdf90b6c54e3f772271c8d0a495", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-x08", "locations": [] }, { "id": "re-w02-x09", "canonical_id": "re-w02-x09", "bank": "re", "week": 2, "title": "Beginning-of-year reserve deposits", "prompt": "A property partnership deposits $45,000 into a capital reserve today and again exactly one and two years from today. The account earns 6.00% effective annually. No money is withdrawn before the end of Year 3, immediately after the third full year’s interest has accrued. What is the reserve balance at that date? Round to the nearest $100.", "fingerprint": "276f212c9940ad890a8442049267fea6bf8091e6287d3cf3e6400f0081500cee", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-x09", "locations": [] }, { "id": "re-w02-x10", "canonical_id": "re-w02-x10", "bank": "re", "week": 2, "title": "Incremental lease concession NPV", "prompt": "A landlord is choosing between two three-year leases for the same retail suite. Lease A pays $120,000 at the end of each year and requires no upfront landlord payment. Lease B pays $140,000 at the end of each year but requires the landlord to pay $45,000 of additional TI today. Operating expenses, credit risk, and the property’s value at the end of Year 3 are identical. Using an 8.00% annual discount rate, what is the incremental NPV of Lease B relative to Lease A? Round to the nearest $100.", "fingerprint": "af98fe9fbf0ab28838209eec9fe26b9ff4b5976264816480e6e2c62b3c3fba5a", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-x10", "locations": [] }, { "id": "re-w02-s095", "canonical_id": "re-w02-s095", "bank": "re", "week": 2, "title": "Value Lease A’s level cash flows", "prompt": "Lease A costs the landlord $20,000 today and produces net cash flow of $90,000 at each of the next three year-ends. At an 8% annual discount rate, the three-year ordinary-annuity present-value factor is 2.57709699.\nAssume these are all relevant lease cash flows, with no terminal value. What is NPV, rounded to the nearest dollar?", "fingerprint": "7d5326cfd8d2ef7c42aee826c1e2f153fc61dd361e60e8ffae96be8979b16ae8", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w02-s095", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 95, "answer_slides": [ 96 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s097", "canonical_id": "re-w02-s097", "bank": "re", "week": 2, "title": "Practice", "prompt": "A landlord is evaluating a four-year lease. Signing the lease requires $32,000 of tenant improvements and an $8,000 leasing commission, both paid today.\nThe tenant will pay $124,000 at the end of each year for four years. The landlord will pay $18,000 of incremental operating expenses at each of those same year-ends. The lease has no rent increases, additional capital spending, or residual value after Year 4.\nUsing a 9% annual discount rate, what is the NPV today of signing the lease, rounded to the nearest dollar?", "fingerprint": "8866be60eae123fae7879f0e13121cb1efc3406d290731347a7bb387350230b7", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-s097", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 97, "answer_slides": [ 98 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s099", "canonical_id": "re-w02-s099", "bank": "re", "week": 2, "title": "Value Lease B’s unequal cash flows", "prompt": "Lease B costs the landlord $45,000 today and produces net cash flow of $100,000, $102,000, and $104,000 at the ends of Years 1, 2, and 3, respectively. The annual discount rate is 8%. There is no terminal value or other relevant cash flow.\nWhat is NPV, rounded to the nearest $100?", "fingerprint": "230f2b2b528cd62917aa15b279bc08de42c24890fdec1714ade7af45706ea5dc", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-s099", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 99, "answer_slides": [ 100 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s101", "canonical_id": "re-w02-s101", "bank": "re", "week": 2, "title": "Practice", "prompt": "A landlord is evaluating a three-year lease. Today, the landlord must pay $43,000 for tenant improvements and a $17,000 leasing commission.\nThe forecast contains the following additional cash flows, all paid or received at the end of the stated year:\nThere are no other cash flows or residual value. Using an 8.5% annual discount rate, what is the lease's NPV today, rounded to the nearest dollar?", "fingerprint": "0764ddb075d7fdc0abfe146c7ea3a18dbbff96a02264bf992aa50db9cba485c6", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-s101", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 101, "answer_slides": [ 102 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w02-s103", "canonical_id": "re-w02-s103", "bank": "re", "week": 2, "title": "Practice", "prompt": "A company offers a three-year service contract under two payment options:\nAnnual billing: The customer pays $140,000 at the end of each year for three years.\nPrepayment: The customer pays the full three-year contract price today and receives an 18% discount from the total undiscounted price.\nIf the customer prepays, the company also incurs an $8,400 processing and contract-administration cost today. This cost is not incurred under annual billing.\nThe company can immediately reinvest any cash it receives in another business line that is expected to earn a 22% annual return over the next three years. The company incurs $28,000 of service-delivery costs at the end of each year under either payment option.\nAssume the service obligations are identical, all amounts are collected as scheduled, and there are no taxes or other incremental cash flows. Use 22% as the annual discount rate for this comparison.\nWhat is the incremental NPV today to the company of accepting prepayment rather than annual billing, rounded to the nearest $100?", "fingerprint": "9aa751b3138d3bf1831301f326b964705cd3f85cf91f8e5b6f5f6505c9a70ee0", "score": 8, "components": { "reasoning": 3, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w02-s103", "locations": [ { "deck_id": "1W8KiwD7vDYS3uyssSAf35mf_DF8XE5KU", "deck_name": "Week 2 - FNCE 118 & FNCE 128 - Contracts, Leases, NOI, and TVM - Shared Master.pptx", "question_slide": 103, "answer_slides": [ 104 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-x01", "canonical_id": "re-w03-x01", "bank": "re", "week": 3, "title": "Net debt proceeds and equity funding", "prompt": "A buyer pays $6,800,000 for an industrial property, $136,000 of nonfinancing closing costs, $240,000 for immediate improvements, and $124,000 for an initial reserve. A mortgage has a face amount equal to 65.00% of the property price. The lender withholds a 1.50% origination fee from that face amount. There are no other sources or uses. What total equity contribution is required at closing? Round to the nearest $100.", "fingerprint": "20ab998421ca4a836059948e53e50e1d38a9b90928d1b34bf890fcd1a446a4a0", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-x01", "locations": [] }, { "id": "re-w03-s004", "canonical_id": "re-w03-s004", "bank": "re", "week": 3, "title": "Practice", "prompt": "A bank provides a loan secured by a property. An investor contributes cash in exchange for the residual ownership interest. Which statement best distinguishes their roles?", "fingerprint": "6f72864b6325cdbaef2cf3fda9d22bc0e62531d13cbf5ca13023f7fc3c94a59f", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s004", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 4, "answer_slides": [ 5 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s006", "canonical_id": "re-w03-s006", "bank": "re", "week": 3, "title": "Practice", "prompt": "A buyer agrees to pay $1,360,000 for an industrial property. Buyer closing costs of $38,400 remain unpaid. The lender will disburse $952,000 at closing, with no fee withheld from those proceeds. The buyer previously paid a $40,000 earnest-money deposit that will be fully credited at closing. The loan has a 6.25% annual interest rate. With no other costs or credits, how much additional cash must the buyer bring to closing?", "fingerprint": "c022a66bbc22eb4d1ceb94329692b0fc4c365f17b8cbebdf7829c4b68dfee439", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s006", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 6, "answer_slides": [ 7 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s008", "canonical_id": "re-w03-s008", "bank": "re", "week": 3, "title": "Practice", "prompt": "An acquisition has $10,100,000 of initial uses before loan fees. The loan is $5,800,000, and a 1.25% loan fee is paid at closing in addition to those uses. What is initial equity?", "fingerprint": "acf6a40b9d9b1d256fbc9ee21942d2555250e968357ffd7a24662737b5fffc69", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s008", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 8, "answer_slides": [ 9 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s010", "canonical_id": "re-w03-s010", "bank": "re", "week": 3, "title": "Practice", "prompt": "A buyer is preparing the equity funding schedule for a property acquisition:\nThe lender approves a $5,600,000 loan but withholds a fee equal to 1.5% of that amount from the loan proceeds. The buyer has already paid a $150,000 earnest-money deposit, which is credited toward the purchase price at closing. There are no other funding sources.\nWhat is the buyer's total equity contribution to the acquisition, including the deposit already paid?", "fingerprint": "6d8109e29c520675971ef7c1f9e6a57b137a72c058fda4f3452d47c62ec1d9aa", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-s010", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 10, "answer_slides": [ 11 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-x02", "canonical_id": "re-w03-x02", "bank": "re", "week": 3, "title": "Priority and residual equity after sale", "prompt": "A distressed office property sells for $5,900,000. Selling costs are $177,000. The senior lender’s full payoff is $4,850,000, and a mezzanine lender’s full payoff is $620,000. The agreement pays sale costs first, senior debt second, mezzanine debt third, and common equity last. There are no taxes, other obligations, or side guarantees. How much cash reaches common equity? Round to the nearest dollar.", "fingerprint": "ec62ee733f1dcd77d9444523b81564f3c1a7f9d867e60eaff643ef21c66f56ad", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-x02", "locations": [] }, { "id": "re-w03-s013", "canonical_id": "re-w03-s013", "bank": "re", "week": 3, "title": "Practice", "prompt": "A capital stack includes senior secured debt, preferred equity, and common equity. The documents give senior debt priority over both equity classes and preferred equity priority over common equity. Which statement best describes the economic claims?", "fingerprint": "976470493b0ac0718574866f3f8c25f4bb6463f36649e107bc2e69afd7a6ee37", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s013", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 13, "answer_slides": [ 14 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s015", "canonical_id": "re-w03-s015", "bank": "re", "week": 3, "title": "Practice", "prompt": "A bank makes a $720,000 loan secured by a property. Separate investors contribute $480,000 for all common ownership interests. The bank is entitled only to the repayment and interest specified in its loan agreement; it has no equity participation. The property later attracts a purchase offer above its acquisition price. Assume a sale would fully repay the bank and all other obligations. Which statement correctly distinguishes the bank's claim from the investors' claim?", "fingerprint": "219b602eddda7c7ee4352db4a5028bf1f557f48f1e72320c3e0ea9e121558d80", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s015", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 15, "answer_slides": [ 16 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s017", "canonical_id": "re-w03-s017", "bank": "re", "week": 3, "title": "Practice", "prompt": "A real estate investment has senior debt, mezzanine debt, preferred equity, and common equity. After paying operating expenses, the property generates enough cash to satisfy all required senior debt and mezzanine payments, but only $500,000 remains for the equity investors. Based on the investment’s priority of claims, who generally has the first claim on the remaining $500,000?", "fingerprint": "97453ccd60b6bb75936c1e8f5bca661f7e7be34adadcee1ffb7c85e00cac20f1", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s017", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 17, "answer_slides": [ 18 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s019", "canonical_id": "re-w03-s019", "bank": "re", "week": 3, "title": "Practice", "prompt": "A property sells for $5,700,000. The closing statement and investment agreement require the sale proceeds to be distributed in this order:\nPay selling costs equal to 3% of the sale price.\nRepay the senior loan's $4,150,000 principal balance and $85,000 of accrued interest.\nPay the preferred investors their $900,000 contributed capital and $135,000 accrued preferred return.\nDistribute all remaining cash to the common equity investors.\nThe common investors originally contributed $660,000. There are no other claims, fees, or cash balances.\nHow much cash is distributed to the common equity investors at this closing?", "fingerprint": "d5bff7a5b0ffc13306977855a4c05f7ae9de86025fedbc43d7a11c7b02492d29", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-s019", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 21, "answer_slides": [ 22 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-x08", "canonical_id": "re-w03-x08", "bank": "re", "week": 3, "title": "Mortgage constant and amortization", "prompt": "A loan has a $4,200,000 initial principal balance. During its first year the property pays $277,200 of mortgage interest and $105,000 of principal. NOI is $625,000. A $42,000 lender fee was paid at closing and is not part of scheduled debt service. What is the first-year mortgage constant, using the initial loan balance? Round to two decimal places.", "fingerprint": "c443f7d46bbec124c117ada372b8e85eda6834a85629168787d0e7aa528ffd59", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-x08", "locations": [] }, { "id": "re-w03-x03", "canonical_id": "re-w03-x03", "bank": "re", "week": 3, "title": "Cash flow after reserves and debt", "prompt": "An apartment property reports $680,000 of NOI after its property-management fee. During the year it pays $78,000 for capital replacements, deposits $32,000 into a restricted lender reserve, pays $294,000 of mortgage interest, and repays $86,000 of mortgage principal. The reserve deposit is separate from the capital replacements and is not released this year. How much current-year operating cash is available to equity before partner-level fees? Round to the nearest dollar.", "fingerprint": "be34bd4ce33b7f70bf791b93d019845739c10fd0a13d43f25a796a2cbcaf4990", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-x03", "locations": [] }, { "id": "re-w03-s025", "canonical_id": "re-w03-s025", "bank": "re", "week": 3, "title": "Practice", "prompt": "An independent property has annual NOI of $285,000, capital spending of $30,000, and debt service of $128,000. With no other flows or owner taxes, what cash remains for equity?", "fingerprint": "70695c362b109a7207ddf4ab2b4c9fa856755e3c15d01d5e2813d5b059a95a87", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w03-s025", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 27, "answer_slides": [ 28 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s027", "canonical_id": "re-w03-s027", "bank": "re", "week": 3, "title": "Practice", "prompt": "A property's Year 1 NOI is $164,000. Year 1 debt service totals $69,000, comprising $51,000 of interest and $18,000 of principal. A $22,000 capital replacement is paid from Year 1 cash. Separately, $14,000 of acquisition costs were paid before Year 1 began. With no reserve releases, other cash flows, or owner income taxes, how much Year 1 cash remains for equity?", "fingerprint": "2938698d9c89272c68bacb5ddada39e636524c618726e28cbff1424acc06fc2a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s027", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 29, "answer_slides": [ 30 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s029", "canonical_id": "re-w03-s029", "bank": "re", "week": 3, "title": "Practice", "prompt": "A property has Year 1 NOI of $310,000, annual capital spending of $34,000, and debt service of $185,000. Tenant improvements of $80,000 and leasing commissions of $25,000 were paid at closing and are not recurring Year 1 costs. What is Year 1 cash after debt service?", "fingerprint": "3577853271e5e61b737e27ebb50862afe11a6cb053b6bb3bd6692be4027a753a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s029", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 31, "answer_slides": [ 32 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s031", "canonical_id": "re-w03-s031", "bank": "re", "week": 3, "title": "Practice", "prompt": "A 100-unit multifamily property reports annual NOI of $420,000. The following cash expenditures have not been deducted from NOI: $18,000 of unit-turn costs, $12,000 of marketing and leasing costs, $30,000 of capital reserves, and $180,000 of annual debt service ($45,000 principal and $135,000 interest). What is the property’s annual before-tax cash flow to equity?", "fingerprint": "fdafe5bd8cce087d999836a46b292cd83298608810bc12c7cc865dd9da6c1a1a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s031", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 33, "answer_slides": [ 34 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s033", "canonical_id": "re-w03-s033", "bank": "re", "week": 3, "title": "Practice", "prompt": "A buyer's acquisition budget included $60,000 of tenant improvements and $22,000 of leasing commissions, both paid at closing before Year 1 began.\nThe property's Year 1 forecast shows:\nNOI of $426,000.\nDebt service of $262,000, consisting of $214,000 of interest and $48,000 of principal.\nAdditional capital spending of $37,000 during Year 1, including $18,000 of tenant improvements.\nThere are no other cash flows or reserve requirements. How much Year 1 cash is available to equity after debt service and that year's capital spending?", "fingerprint": "68aae05aea8782b76a25ad533e33bc5450f61f20717f9ca2a99899b029b69270", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s033", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 35, "answer_slides": [ 36 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s036", "canonical_id": "re-w03-s036", "bank": "re", "week": 3, "title": "Practice", "prompt": "A borrower chooses a fixed-rate mortgage instead of an adjustable-rate mortgage. Which risk is most directly reduced during the fixed-rate period?", "fingerprint": "8251cb4fe22ab0ecc3e19e85efab673210a27214789a44b3a51605a73662f3fb", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s036", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 39, "answer_slides": [ 40 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s038", "canonical_id": "re-w03-s038", "bank": "re", "week": 3, "title": "Practice", "prompt": "An owner selects a mortgage with a 6.40% interest rate fixed for its entire seven-year term. Scheduled payments follow a 25-year amortization schedule, so a balance will remain due at maturity. Two years later, market borrowing rates and insurance premiums are higher, while a major lease is approaching expiration. Assume the borrower complies with the loan terms. How does the fixed rate affect the owner's risk?", "fingerprint": "5d8c763d01cbe202a67f568ef36837f272467c92a926087050afe9756b8bada3", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s038", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 41, "answer_slides": [ 42 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s040", "canonical_id": "re-w03-s040", "bank": "re", "week": 3, "title": "Practice", "prompt": "A borrower obtains a 10-year commercial mortgage loan on a stabilized industrial property. The loan amortizes over 30 years, is non-recourse with standard carve-outs, and includes defeasance if the borrower wants to sell or refinance before maturity. Which statement is most accurate?", "fingerprint": "ad47a286ab672e4f54fc10d76ef5b0c0b701f7e7c30c6e52443566cc33f8d264", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s040", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 43, "answer_slides": [ 44 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-x06", "canonical_id": "re-w03-x06", "bank": "re", "week": 3, "title": "Floating-rate cap and partial coverage", "prompt": "An interest-only $5,000,000 property loan charges annual SOFR plus 2.50%. SOFR is 6.20% for the entire coming year. A purchased rate cap pays the excess of SOFR over a 4.00% strike on only $3,000,000 of notional. Assume annual simple accrual, full settlement collection in the same year, no floors, and no change in principal. Ignore the already-paid cap premium. What is net annual interest expense after the cap payment? Round to the nearest $100.", "fingerprint": "abc908da8628853dcd74358fcdea2953a497fc0b4c8a8d87789d24f9b61da40c", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-x06", "locations": [] }, { "id": "re-w03-s043", "canonical_id": "re-w03-s043", "bank": "re", "week": 3, "title": "Practice", "prompt": "An owner finances an industrial property with a four-year loan. Its floating rate is the reference index plus a fixed 2.00% spread. A purchased cap limits the index component to 4.50% on the full outstanding principal for the first three years. The cap then expires.\nThe loan has no extension option, and a balloon is due at the end of Year 4. A major tenant's lease also expires during Year 4. Ignore cap-provider default and timing differences between cap receipts and interest payments.\nWhich risk assessment is most accurate?", "fingerprint": "339b24ec35a5d0de4e067c38b93723c3cea0f7590c25687c216c7283b9958005", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-s043", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 46, "answer_slides": [ 47 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-x04", "canonical_id": "re-w03-x04", "bank": "re", "week": 3, "title": "Monthly amortizing mortgage payment", "prompt": "A warehouse acquisition is financed with a $3,600,000 mortgage at a 6.00% nominal annual interest rate with monthly compounding. Payments are level and made at each month-end, based on a 25-year amortization schedule. The loan matures after five years. Ignore fees. What is the required monthly principal-and-interest payment during the initial term? Round to the nearest dollar.", "fingerprint": "7fe46d08c860e13fd7fcb81515e376774531e99802db8e1aad4b0110df192f8c", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-x04", "locations": [] }, { "id": "re-w03-x05", "canonical_id": "re-w03-x05", "bank": "re", "week": 3, "title": "Mortgage balloon after scheduled payments", "prompt": "A $2,800,000 mortgage has a 6.60% nominal annual rate with monthly compounding, a 30-year amortization schedule, and a five-year maturity. All 60 scheduled month-end payments have just been made. There are no fees, extra principal payments, or unpaid interest. What remaining principal must be repaid at maturity? Round to the nearest $100.", "fingerprint": "a5f744ecc86e622891e9568a094d13d0d707971d6eec1bf2062f2454da0dca8a", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-x05", "locations": [] }, { "id": "re-w03-s046", "canonical_id": "re-w03-s046", "bank": "re", "week": 3, "title": "Practice", "prompt": "A lender offers a $1,000,000 commercial mortgage at 6% nominal annual interest. The loan uses 30-year amortization, monthly payments in arrears, and a five-year term. No fees, extra payments, or rate changes apply.\nImmediately after the 60th scheduled payment, what remaining principal must the borrower repay at maturity, rounded to the nearest dollar?", "fingerprint": "cb6f6918818474c5470303c80ac94b68885fba02a9525d6c6a58710a2185d4d6", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-s046", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 49, "answer_slides": [ 50 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s049", "canonical_id": "re-w03-s049", "bank": "re", "week": 3, "title": "Practice", "prompt": "A lender reviews rent, vacancy, operating expenses, and net operating income before approving an income-property mortgage. What is the best explanation for that review?", "fingerprint": "3da24f34384098c9d2e0b1f341e77600439d6b2e9a3d2e9232f7544425bca787", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s049", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 58, "answer_slides": [ 59 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s051", "canonical_id": "re-w03-s051", "bank": "re", "week": 3, "title": "Practice", "prompt": "A lender is reviewing an apartment acquisition. The broker emphasizes a $3.2 million appraisal and 96% physical occupancy. The rent roll, however, includes tenants with unpaid balances, several leases expire soon, and the buyer's insurance quote exceeds the seller's expense. The loan requires scheduled payments even when collections fall. Which analysis most directly addresses whether recurring property operations can support those payments?", "fingerprint": "db25d11daa83150a530949b9d9e786ff2a61486dd06626387278ba8e45ccc123", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s051", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 60, "answer_slides": [ 61 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s053", "canonical_id": "re-w03-s053", "bank": "re", "week": 3, "title": "Practice", "prompt": "Debt service coverage ratio is used to assess whether property income supports scheduled debt payments. Which expression best states the concept?", "fingerprint": "3e8da979187c4f797f62128559e847c8f458c1d25f2ea129dd01ee62a64bfb19", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s053", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 62, "answer_slides": [ 63 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s055", "canonical_id": "re-w03-s055", "bank": "re", "week": 3, "title": "Practice", "prompt": "A lender defines debt service coverage ratio, or DSCR, as NOI divided by scheduled principal and interest payments. The loan agreement calculates NOI before capital spending.\nThe sponsor's forecast instead deducts a planned parking-lot replacement from NOI and divides the remaining amount by interest payments only. The loan requires both interest and principal payments next year.\nWhich revision makes the forecast consistent with the loan agreement?", "fingerprint": "b6068a49c3d67d20f7e3453d231b80c95cbaac0b36080a04018e7ab5ea089df2", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s055", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 64, "answer_slides": [ 65 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s057", "canonical_id": "re-w03-s057", "bank": "re", "week": 3, "title": "Practice", "prompt": "A lender is underwriting the acquisition of a stabilized multifamily property. The purchase price is $18,000,000, but the lender’s appraisal supports a value of only $17,200,000. The lender offers a loan of $11,180,000 and sizes the loan based on the lower of purchase price or appraised value. What is the loan-to-value ratio?\n\nUse the value basis specified by this lender. Other transactions may use different definitions.", "fingerprint": "d272e4333095b6e4c48011a25c338b7bf46d7a477e30f8a9fa28c2c27c8ba369", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s057", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 66, "answer_slides": [ 67 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-x07", "canonical_id": "re-w03-x07", "bank": "re", "week": 3, "title": "Loan capacity with three constraints", "prompt": "A lender underwrites annual NOI of $540,000 and property value of $7,500,000. Its policy permits no more than 65.00% LTV, requires at least 1.30x DSCR, and requires at least a 10.00% debt yield. Annual debt service equals 8.00% of the loan amount. All three tests apply, and no other limit binds. What is the maximum loan? Round to the nearest $100.", "fingerprint": "b141c56d528f4a38d8ff7fd63755ccc7bc7964fb81ece46f9050076f3169e9ec", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-x07", "locations": [] }, { "id": "re-w03-s060", "canonical_id": "re-w03-s060", "bank": "re", "week": 3, "title": "Practice", "prompt": "Lender-underwritten NOI is $630,000, the minimum DSCR is 1.40x, and the annual mortgage constant is 9.0%. What maximum loan does the DSCR test permit?", "fingerprint": "1e7168fe615ebc6e7ea5fef407c56b2088384c3dc5cb7daa8becb0b67c35858f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s060", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 69, "answer_slides": [ 70 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s062", "canonical_id": "re-w03-s062", "bank": "re", "week": 3, "title": "Practice", "prompt": "A bank is reviewing a loan request. The broker reports annual NOI of $728,000. The bank removes $18,000 of unsupported revenue and adds $8,000 of omitted operating expenses.\nThe proposed loan has these terms:\nMinimum DSCR: 1.35x, calculated using the bank's adjusted NOI.\nAnnual mortgage constant: 8.0%, meaning annual principal and interest payments equal 8.0% of the initial loan amount.\nNote interest rate: 6.2%.\nThe owner also plans $24,000 of capital spending. The bank calculates NOI before capital spending, and no other lending limit applies.\nWhat is the largest loan the bank can approve under the DSCR requirement, rounded to the nearest dollar?", "fingerprint": "9282bf10a1f4cabe727b465b16ae89d08ed3158e94f679a3f759e2b29050122a", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-s062", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 71, "answer_slides": [ 72 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s064", "canonical_id": "re-w03-s064", "bank": "re", "week": 3, "title": "Practice", "prompt": "A sponsor requests a $6,400,000 loan. The same loan is limited to $6,500,000 by LTV, $6,200,000 by DSCR, and $6,350,000 by debt yield. If all three tests must be satisfied, what is the correct response?", "fingerprint": "46ac813625e2baa1b515b2112ce2ec62516d5d829c39b0a53e81441c95f1e23f", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s064", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s066", "canonical_id": "re-w03-s066", "bank": "re", "week": 3, "title": "Practice", "prompt": "A buyer requests a $6,700,000 loan on a property appraised at $10,600,000. The lender accepts annual NOI of $756,000 and requires the loan to satisfy all three tests:\nAnnual principal and interest payments equal 8.4% of the initial loan amount. No other loan limits or fees apply.\nWhat is the largest loan the lender can approve without exceeding the requested amount, rounded to the nearest dollar?", "fingerprint": "cc6c84945315e180dab06e72d2767eb93b4907d597e73a0566df3013cc1b70c3", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-s066", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 75, "answer_slides": [ 76 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s071", "canonical_id": "re-w03-s071", "bank": "re", "week": 3, "title": "Practice", "prompt": "A sponsor is buying a 120-unit apartment property that is currently 72% occupied. The property has deferred maintenance, below-market rents, and outdated interiors. The sponsor plans to renovate units, improve management, increase occupancy, raise NOI, and then refinance into long-term permanent debt once the property is stabilized. Which financing structure best fits this business plan?", "fingerprint": "da7297a808f48f136d5be96b7a328acfdaf5b4583bacb8c882f3a170212fc51f", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s071", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 80, "answer_slides": [ 81 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-x09", "canonical_id": "re-w03-x09", "bank": "re", "week": 3, "title": "Equity cash yield and complete funding", "prompt": "A buyer pays $5,800,000 for an apartment property and another $200,000 for closing costs and immediate work. A $3,600,000 loan funds the acquisition and has a 7.50% annual mortgage constant. Year 1 NOI is $510,000 and additional Year 1 capital spending is $36,000. There are no fees or reserve changes. What is Year 1 cash-on-cash return on the full initial equity contribution? Round to two decimal places.", "fingerprint": "8643ca1bf1e50242accbffa4d1f2c4fa7e771501f329f4d591da626d2cca559d", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-x09", "locations": [] }, { "id": "re-w03-s075", "canonical_id": "re-w03-s075", "bank": "re", "week": 3, "title": "Practice", "prompt": "An investor purchases a property for $12,000,000 with annual NOI of $900,000 (7.5% cap rate). Option 1 (All Cash): $12M equity, $0 debt service. Option 2 (Leveraged): $7.2M debt at 6.0% interest-only ($432k debt service), $4.8M equity. Which statement correctly compares annual cash-on-cash return and financing risk under the two structures?", "fingerprint": "fd5ec68d5808baba071c35b65d1fa6335add6d89564b4b88a0c4be5323d1b176", "score": 5, "components": { "reasoning": 2, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s075", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 84, "answer_slides": [ 85 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s077", "canonical_id": "re-w03-s077", "bank": "re", "week": 3, "title": "Practice", "prompt": "An investor contributes $4,400,000 of cash equity to acquire a $12,800,000 property. That equity includes $400,000 of acquisition costs and initial reserves.\nDuring the first year, the property generates $812,000 of NOI, pays $590,000 of debt service, and spends $68,000 on capital improvements. The debt service includes $70,000 of principal repayment. The property's appraised value also increases by $320,000, but the property is not sold or refinanced.\nWhat is the first-year cash-on-cash return, using cash available after debt service and capital spending divided by all cash equity contributed? Round to two decimal places.", "fingerprint": "8517a11c725594a2b3ca0d57f0ebfa1c187dd2d4fa0c170aa05906de40004de5", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-s077", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 86, "answer_slides": [ 87 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s079", "canonical_id": "re-w03-s079", "bank": "re", "week": 3, "title": "Practice", "prompt": "Two buyers acquire similar properties. Buyer X uses a higher loan-to-value mortgage. If property income falls, why can Buyer X face greater financial pressure?", "fingerprint": "f01865193d9b659c0a111222ae77355fe6479f9ddddcf9ac71f893aca0444e7e", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s079", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 88, "answer_slides": [ 89 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s081", "canonical_id": "re-w03-s081", "bank": "re", "week": 3, "title": "Practice", "prompt": "Two investors buy otherwise identical properties for $18,000,000 each:\nInvestor 1 finances the purchase with $7,200,000 of debt and the balance in cash equity.\nInvestor 2 uses $12,600,000 of debt and the balance in cash equity.\nImmediately after closing, both properties fall 12% in value. No operating cash flow, debt repayment, or transaction cost occurs between the purchase and the decline. Both loan balances remain unchanged, and each property is still worth more than its debt.\nBy what percentage has each investor's equity value declined, measured against that investor's original equity contribution? Round to two decimal places.", "fingerprint": "da0837f780644f75f1676787ee024363961f1489a2e305ebe4aaf2e13f7b8dd7", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-s081", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 90, "answer_slides": [ 91 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s084", "canonical_id": "re-w03-s084", "bank": "re", "week": 3, "title": "Practice", "prompt": "A real estate investment is organized as a limited partnership with a sponsor as GP and outside investors as LPs. Which statement best describes this structure?", "fingerprint": "8e1133f3f5018059c6d1966bd1dc444582310a03b1f0afb6e0765d519d697e55", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s084", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 93, "answer_slides": [ 94 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s086", "canonical_id": "re-w03-s086", "bank": "re", "week": 3, "title": "Practice", "prompt": "Which statement is false concerning the limited partnership form of ownership?", "fingerprint": "815698073fd30e768dfbf8fc79dfd3fc33e4660aa02214f8fff196c0da660192", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w03-s086", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 97, "answer_slides": [ 98 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s091", "canonical_id": "re-w03-s091", "bank": "re", "week": 3, "title": "Practice", "prompt": "Assume a one-year real estate investment. The LP contributes $2,000,000, and the GP contributes no capital. The LP is entitled to an 8% annual preferred return. At the end of the year, $2,360,000 of total cash is available for distribution after repayment of debt. The waterfall distributes cash in the following order: 1. Return the LP’s $2,000,000 capital. 2. Pay the LP its 8% preferred return. 3. Split any remaining cash 80% to the LP and 20% to the GP. There are no interim distributions, fees, catch-up provisions, or additional tiers. How much total cash is distributed to the LP and GP?", "fingerprint": "81a6c36b76f1b8846c248374da41ad60ba54eea72972552848099200edd80db0", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w03-s091", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 102, "answer_slides": [ 103 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w03-s093", "canonical_id": "re-w03-s093", "bank": "re", "week": 3, "title": "Practice", "prompt": "SCENARIO Two investors acquire identical $20M properties with the same NOI and risk profile. Investor A: $8M Debt | $12M Common Equity Investor B: $14M Debt | $6M Equity (GP/LP Structure) Investor B's structure includes preferred returns and a GP promote waterfall. Which statement is most accurate?", "fingerprint": "11e1c439aae1234fb5c8181222ec2472d1edaefbd04ee6f32d9666efd2e97b57", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w03-s093", "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 104, "answer_slides": [ 105 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x07", "canonical_id": "re-w04-x07", "bank": "re", "week": 4, "title": "Property cash flow before financing", "prompt": "A three-year forecast shows $745,000 of Year 3 NOI, $85,000 of Year 3 capital and leasing expenditures, and a $9,600,000 gross sale at that year-end. Selling costs are $240,000. A $5,700,000 mortgage is repaid at sale, and annual debt service is $390,000. What total Year 3 unlevered property cash flow should be used before financing and income taxes? Round to the nearest dollar.", "fingerprint": "0700c464c5c0cdc98227dcfa5f2f3795303099a308072ba8c89ab4ef20001c2a", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-x07", "locations": [] }, { "id": "re-w04-s006", "canonical_id": "re-w04-s006", "bank": "re", "week": 4, "title": "Practice", "prompt": "An analyst is constructing the unlevered cash flow stream for a property with a five-year holding period. Which item should be included?", "fingerprint": "a00f573284416350f2e3e85fd5ed7e4ca8bd6dd4e8039177f836c5be6be33196", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s006", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 6, "answer_slides": [ 7 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s011", "canonical_id": "re-w04-s011", "bank": "re", "week": 4, "title": "Practice", "prompt": "Annual rent is $100,000. The lease provides a 5% rent increase for the next year, with no change in occupied space or other rent terms. What is next year’s annual rent?", "fingerprint": "cff2414a5141220860497645afbb41911e1904cbf98e92ce6866df3e99f086ec", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w04-s011", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 11, "answer_slides": [ 12 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s013", "canonical_id": "re-w04-s013", "bank": "re", "week": 4, "title": "Practice", "prompt": "An office tenant pays $13,000 per month from January through June. The executed lease increases monthly rent by 4% beginning July 1. The space stays occupied, all rent is collected, and there are no concessions or other rent adjustments. Nearby market asking rents are expected to rise 9%. What total base rent should be forecast for this calendar year?", "fingerprint": "fea507e7053e89204b4e53a04d2a95130b39c07a8eb74467ab4cc58e8aa8c145", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s013", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 13, "answer_slides": [ 14 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s016", "canonical_id": "re-w04-s016", "bank": "re", "week": 4, "title": "Practice", "prompt": "ANALYST ONE “Revenue grows 4% per year.” ANALYST TWO “Occupancy improves from 93% to 94%... average rent grows 3% based on submarket rent comps... together, these produce 4.1% Year 2 revenue growth.” Why is Analyst Two’s forecast stronger?", "fingerprint": "29fdc093093b3e932b62c8abce3bb05f53242ef51ba70c9ae802cdfd3b0d1637", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s016", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 16, "answer_slides": [ 17 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x03", "canonical_id": "re-w04-x03", "bank": "re", "week": 4, "title": "Reimbursements and unrecovered inflation", "prompt": "A fully leased office property has $960,000 of fixed annual base rent. In the coming year, operating expenses rise from $360,000 to $414,000. Executed leases reimburse 70.00% of the dollar increase above $360,000, and those reimbursements are collected during the year. There is no other income or change in rent. What is forecast NOI for the coming year? Round to the nearest dollar.", "fingerprint": "6b63cfb23ca052c043ff9d5d9c5e23636f56744e594617315560aac27a012ce1", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-x03", "locations": [] }, { "id": "re-w04-s019", "canonical_id": "re-w04-s019", "bank": "re", "week": 4, "title": "Practice", "prompt": "A tenant's scheduled base rent is $432,000 in Year 1 and grows 3% in Year 2. There is no Year 2 concession. Eligible expenses rise from $132,000 by 4%; a fixed $108,000 expense stop applies. Other income remains $12,000 and all amounts are collected. What is Year 2 NOI?", "fingerprint": "39a3adba9175ac37a6c75445b61069b35c9e4939868df07d47f1ae7cc5810730", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Cash flow modeling", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s019", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 19, "answer_slides": [ 20 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s021", "canonical_id": "re-w04-s021", "bank": "re", "week": 4, "title": "Practice", "prompt": "A single tenant leases an entire building. Its Year 1 scheduled base rent is $560,000 before a one-month free-rent concession that applies only in Year 1.\nThe Year 2 forecast must reflect these lease and expense terms:\nScheduled base rent increases by 3.5% for the full year, with no free rent.\nEligible operating expenses rise 5% from their Year 1 amount of $140,000.\nThe tenant reimburses 100% of eligible expenses above a fixed annual stop of $120,000.\nNonreimbursable operating expenses rise 4% from their Year 1 amount of $26,000.\nOther revenue remains $20,000 per year.\nAll billed amounts are collected, and there are no other operating items. What is Year 2 NOI?", "fingerprint": "84c257842b749b570e8df6e3e264bf026db44da1fdda73bcebf41db43abb554a", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Cash flow modeling", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s021", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 21, "answer_slides": [ 22 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s023", "canonical_id": "re-w04-s023", "bank": "re", "week": 4, "title": "Practice", "prompt": "The forecast records operating expenses when paid and tenant reimbursements when collected. The landlord pays an additional $8,400 utility bill in December of Year 1. The tenant owes the full amount under the lease but pays it in January of Year 2. This additional cost does not recur in Year 2, and nothing else changes. How do the payment and reimbursement change cash-flow NOI compared with a forecast that omitted both?", "fingerprint": "22a018c50276870386076f6f313ed438f78447501c196a8c8816f81a18379fe9", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s023", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 23, "answer_slides": [ 24 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x04", "canonical_id": "re-w04-x04", "bank": "re", "week": 4, "title": "Management fee on collected EGI", "prompt": "An apartment forecast has $1,440,000 of GPR, separate $72,000 vacancy loss, $28,800 credit loss, and $36,000 concessions. Other collected income is $64,800. Fixed operating costs are $410,000, excluding management. The manager receives 3.00% of EGI after all rental deductions and other income. What annual NOI does this forecast produce? Round to the nearest dollar.", "fingerprint": "1b51c1db2b2d34bade3b47a299f717a2a0d528b38b62c6b4bde5fd6e7fb31bc1", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Cash flow modeling", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-x04", "locations": [] }, { "id": "re-w04-s027", "canonical_id": "re-w04-s027", "bank": "re", "week": 4, "title": "Practice", "prompt": "A reported Year 2 forecast NOI of $300,000 is after subtracting $72,000 of free rent that expired after Year 1. The forecast also omits $6,000 of collectible reimbursement. All other entries are correct. What is corrected NOI?", "fingerprint": "9b1d6f556e65ef3ecbcd6169a1e2e863d906470d087ded76d6d64316d7daf0fc", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s027", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 27, "answer_slides": [ 28 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s029", "canonical_id": "re-w04-s029", "bank": "re", "week": 4, "title": "Practice", "prompt": "A tenant's base rent is $40,000 per month. Its lease began on January 1 of Year 1 and granted free base rent in January and February of that year. All remaining Year 1 payments were collected.\nIn Year 2, the tenant receives no free rent. Monthly base rent remains $40,000 through June and increases by 5% on July 1. All scheduled rent is expected to be collected. Operating expenses and all other revenues are unchanged.\nAn analyst starts the Year 2 forecast by copying the base rent actually collected in Year 1. By how much must the analyst increase that amount to forecast Year 2 correctly?", "fingerprint": "03ec6dcd04ef4fba228b499eca5ff013a9cabfa7f9bba3ba848bf1e8efb4a2a2", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s029", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 29, "answer_slides": [ 30 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x01", "canonical_id": "re-w04-x01", "bank": "re", "week": 4, "title": "Historical baseline reconciliation", "prompt": "A property’s reported NOI is $575,000. Included in revenue is a one-time $45,000 lease-termination payment. Included in operating expenses is $68,000 of capitalized HVAC replacement. A recurring $22,000 insurance bill was omitted. The analyst removes nonrecurring income, excludes capital replacements from NOI, and includes all recurring expenses. What is the corrected baseline NOI? Round to the nearest dollar.", "fingerprint": "c2c7350ef3c92cc05ef3ac877f4889f93bca6b3fc5d73212c620072ee5e3d074", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-x01", "locations": [] }, { "id": "re-w04-s032", "canonical_id": "re-w04-s032", "bank": "re", "week": 4, "title": "Practice", "prompt": "A seller describes a building as fully occupied, but several tenants have stopped paying rent. What should a buyer check before relying on the seller’s income estimate?", "fingerprint": "724b58bba166afc2a6cec61b3400306f6effbf5f282fc289e32a4eacdc3d66b3", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s032", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s034", "canonical_id": "re-w04-s034", "bank": "re", "week": 4, "title": "Practice", "prompt": "A seller describes an apartment building as fully occupied and points to bank deposits close to the annual scheduled rent. Several tenants nevertheless have unpaid current-year balances. The bank deposits include refundable security deposits and payments of rent that was overdue from the prior year. The seller proposes treating every deposit as evidence of sustainable current-year rental income. Which diligence approach best tests the claim before the buyer relies on the forecast?", "fingerprint": "344b276d09c9cb505b07ba738d7c28847f07625bc3faa45e46dddbdc4cffd817", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s034", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 34, "answer_slides": [ 35 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x05", "canonical_id": "re-w04-x05", "bank": "re", "week": 4, "title": "Historical CAGR and forward forecasting", "prompt": "A property’s annual NOI rose from $420,000 to $486,202.50 over three full years. An analyst projects that exact historical compound annual growth rate for the next two years. No acquisition, disposition, or accounting change affected the historical figures. What NOI is forecast two years after the latest observed NOI? Round to the nearest $100.", "fingerprint": "31c0f1bb7caa883466369c0cee89e37fdece447c05074f0f162afb467e537597", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-x05", "locations": [] }, { "id": "re-w04-s037", "canonical_id": "re-w04-s037", "bank": "re", "week": 4, "title": "Practice", "prompt": "A property’s rental revenue was $1,000,000 in Year 1 and $1,200,000 in Year 5. What is the revenue CAGR over the period?", "fingerprint": "024dd381a830a0dc0850607001ea0da1a20a7574b171254649f24f04bfbe189f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s037", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 37, "answer_slides": [ 38 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s040", "canonical_id": "re-w04-s040", "bank": "re", "week": 4, "title": "Practice", "prompt": "A landlord expects to charge the same rent as a newly built luxury property nearby. The landlord’s older building has fewer amenities, and existing tenant leases have not expired. Which forecast approach is best supported?", "fingerprint": "13e83c15381816ee8f2760cb71d6da16197d9b69c361ac1b962ff0c0075d85b1", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s040", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 40, "answer_slides": [ 41 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s042", "canonical_id": "re-w04-s042", "bank": "re", "week": 4, "title": "Practice", "prompt": "A hospital district near several apartment buildings is adding 900 permanent jobs. Evidence indicates that many new employees will seek nearby rentals. No additional housing can be completed in that submarket for the next eighteen months. A national report predicts flat apartment rents, and current tenants have fixed rents until their leases expire. Assume other local conditions remain unchanged. Which forecast is best supported?", "fingerprint": "69880468625659e72149c77f7ca9782e6b35a09a015c1ebff9e6981ae2c6ad4d", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s042", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 42, "answer_slides": [ 43 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x02", "canonical_id": "re-w04-x02", "bank": "re", "week": 4, "title": "Lease rollover and downtime", "prompt": "A 20,000-square-foot warehouse lease pays $24 per square foot annually through June 30. The tenant leaves on that date. A replacement lease begins October 1 at $30 per square foot annually; October is free of base rent, and November and December are paid. No rent is collected during July–September. Ignore reimbursements and other income. What base rent is collected for this calendar year? Round to the nearest dollar.", "fingerprint": "f9c79b00595a0f4098dea94e523c85dcdabbb7581588c32d5861f79427c1d745", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-x02", "locations": [] }, { "id": "re-w04-s047", "canonical_id": "re-w04-s047", "bank": "re", "week": 4, "title": "Practice", "prompt": "A lease on 10,000 square feet expires on December 31. For the following year, the owner forecasts two mutually exclusive outcomes:\n60% probability: The tenant renews on January 1 at $24 per square foot per year. Renewal tenant improvements cost $5 per square foot.\n40% probability: A replacement tenant starts on July 1 at $26 per square foot per year. New-tenant improvements cost $20 per square foot.\nAll rent is collected, all improvement costs are paid during the year, and operating expenses are $30,000 in either outcome. No commissions, other cash flows, or financing apply. What is the probability-weighted annual cash flow after operating expenses and tenant improvements?", "fingerprint": "989f1689c932ea1b0a5968c338063951b0a39bdb343c65b18e1e0bce27e98e4a", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s047", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 47, "answer_slides": [ 48 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s049", "canonical_id": "re-w04-s049", "bank": "re", "week": 4, "title": "Practice", "prompt": "A forecast assumes higher market rents next year, but a major tenant will vacate and property insurance premiums will rise. Which approach best estimates next year’s net operating income?", "fingerprint": "d91fa535a7e980d58f8db9253fdf9ee0cc6cce5513132978a887139f1f281619", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s049", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 49, "answer_slides": [ 50 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s053", "canonical_id": "re-w04-s053", "bank": "re", "week": 4, "title": "Practice", "prompt": "An owner forecasts rent 8% above nearby buildings. The subject has newer finishes but a weaker location and requires a one-month concession to sign tenants. Which evidence best supports the forecast?", "fingerprint": "ac9be4566b708e3c8c42997d1f909badbdb9b894b78a35296332aaa0114bf750", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w04-s053", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 55, "answer_slides": [ 56 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s055", "canonical_id": "re-w04-s055", "bank": "re", "week": 4, "title": "Practice", "prompt": "An owner plans to renovate an older apartment building and raise rents by 7%. The building has limited transit access. The broker supports the increase with advertised rents at nearby new luxury buildings, some offering one month free on a twelve-month lease.\nThe owner has not yet signed leases at the proposed rents. The renovation budget is credible, but the owner's target return depends on achieving the increase.\nWhich evidence would best support the proposed rent forecast?", "fingerprint": "d4c5d42db906293a238941607558c350ace8c0293d0700f72728e6dce71b4004", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s055", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 57, "answer_slides": [ 58 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s057", "canonical_id": "re-w04-s057", "bank": "re", "week": 4, "title": "Practice", "prompt": "An older apartment building collects $2,150 per month on leases that remain fixed through September of the forecast year. A new luxury building advertises $3,000 but includes amenities the subject lacks and offers one month free on a twelve-month lease. Signed leases at older, similar nearby properties are around $2,450. The subject's owner plans no renovation and wants a calendar-year forecast. Which approach best supports the calendar-year rent forecast?", "fingerprint": "363457009d0fdbf07134522d4726481090a032f5a27ac274c7235bc2b78b76b9", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s057", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 59, "answer_slides": [ 60 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s061", "canonical_id": "re-w04-s061", "bank": "re", "week": 4, "title": "Practice", "prompt": "A warehouse underwriting includes added rent from subdividing the building. The zoning letter permits the current use but requires discretionary approval for subdivision; no application has been filed. The sponsor says approval is likely but cannot support the timing. How should the current as-is underwriting treat the added rent?", "fingerprint": "f31270e08a3fc6ad7d1c2182d193c200b6383f964c5b91e5c81d06d82c7837aa", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s061", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 63, "answer_slides": [ 64 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x08", "canonical_id": "re-w04-x08", "bank": "re", "week": 4, "title": "Final equity cash without duplicate payoff", "prompt": "A property’s final-year NOI is $520,000. Capital expenditures are $45,000 and scheduled annual debt service is $280,000. A separate closing statement shows $6,900,000 of net sale proceeds after selling costs but before debt repayment. The $3,850,000 lender payoff is measured after the final scheduled debt-service payment. There are no other items. What total final-year cash flow reaches equity? Round to the nearest dollar.", "fingerprint": "521064018592043379499166a6097adc3dad9b9236e894388fe5608344a5a68f", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-x08", "locations": [] }, { "id": "re-w04-s065", "canonical_id": "re-w04-s065", "bank": "re", "week": 4, "title": "Practice", "prompt": "Two identical assets each cost $20 million. Asset A uses $8 million of debt; Asset B uses $14 million of debt. Debt does not amortize. If both property values fall 10% immediately and all other assets and costs are ignored, which comparison is correct?", "fingerprint": "cd3a3aa317ee55ab7bff669ed6bea43c3201e2ab99d6c7b54e3ad991585d4514", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s065", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 67, "answer_slides": [ 68 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s067", "canonical_id": "re-w04-s067", "bank": "re", "week": 4, "title": "Practice", "prompt": "Two owners hold otherwise identical properties with the same NOI and operating risks. Owner X used a larger loan and owes $92,000 of annual debt service; Owner Y owes $56,000. Both payments are fixed for the year. NOI falls to $80,000 for each property, neither has capital spending this year, and neither receives lender relief. Which statement best describes the financial pressure facing these owners?", "fingerprint": "87020b02d4d56a3418c69422435e66928cf367d14e6d05587bbcb5aad63ca0f5", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w04-s067", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 69, "answer_slides": [ 70 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s070", "canonical_id": "re-w04-s070", "bank": "re", "week": 4, "title": "Practice", "prompt": "Assume no separate reserve contribution or release.\nA property has NOI of $700,000, capital expenditures paid from current-year cash of $70,000, debt service of $500,000, and initial equity of $4,600,000. What is Year 1 cash-on-cash return?", "fingerprint": "1258ed2dca7fcbcd490c5f5dde2adce37455fdea5f2feacd3f22b8bd4caae513", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s070", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 72, "answer_slides": [ 73 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s073", "canonical_id": "re-w04-s073", "bank": "re", "week": 4, "title": "Practice", "prompt": "A property has original NOI of $680,000 and fixed annual debt service of $480,000. If NOI falls by 10% and debt service does not change, what is the stressed DSCR?", "fingerprint": "38f31a28b6d6a64d0fa182c173250e2fa8da35f2619aa220a5625625ff5b5aac", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s073", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 75, "answer_slides": [ 76 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s075", "canonical_id": "re-w04-s075", "bank": "re", "week": 4, "title": "Practice", "prompt": "A lender is stress-testing a property's annual forecast:\nIn the stress case, collected base rent falls 8%, reimbursements fall 25%, and variable expenses fall 10%. Fixed expenses and other revenue do not change.\nMonthly debt service remains $42,500. The owner also expects $30,000 of capital spending, which is excluded from the lender's NOI calculation.\nWhat is the stressed DSCR, calculated as annual NOI divided by annual debt service, rounded to three decimal places?", "fingerprint": "4b61f942b8cb183268655e6f27194855c3dd0a8b1f19023242e02a90015e7d51", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s075", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 77, "answer_slides": [ 78 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s079", "canonical_id": "re-w04-s079", "bank": "re", "week": 4, "title": "Practice", "prompt": "An investor agrees to purchase a property for $4,800,000 and separately budgets $120,000 of acquisition closing costs. Forecast Year 1 effective gross income is $468,000 and Year 1 NOI is $312,000; annual debt service is $144,000. Year 2 NOI is forecast at $336,000 after several leases reset. What is the going-in capitalization rate based on the purchase price? Round the percentage to two decimal places.", "fingerprint": "796d4cc6a293fd8e33f36c857a97c6da71bf903a84e78f1ddbda36410ecce714", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s079", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 81, "answer_slides": [ 82 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x06", "canonical_id": "re-w04-x06", "bank": "re", "week": 4, "title": "Sale value and next-year NOI", "prompt": "A property is sold at the end of Year 4. NOI in Year 4 is $630,000, and supported growth from Year 4 to Year 5 is 3.00%. The exit cap rate is 6.25% and applies to Year 5 NOI. Selling costs are 2.00% of the gross sale price. Ignore financing and taxes. What net sale proceeds should be added to Year 4 operating cash flow? Round to the nearest $100.", "fingerprint": "13832426fe067cb51b807613b88a7a9021346873c71d5eacc456075bd67237c9", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-x06", "locations": [] }, { "id": "re-w04-s084", "canonical_id": "re-w04-s084", "bank": "re", "week": 4, "title": "Practice", "prompt": "A buyer plans to hold an office building for three years. The forecast includes these cash flows:\nThe buyer requires a 10% annual return on the property's cash flows before financing. A proposed loan would require $250,000 of annual debt service, but financing does not change the property cash flows above.\nWhat is the property's value today based on this forecast, before subtracting any debt, rounded to the nearest dollar?", "fingerprint": "9ec1fb7896e610f48cbf000a4c96da6f69e6805583ddac8b7a2f2799d42b3541", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s084", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 86, "answer_slides": [ 87 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s086", "canonical_id": "re-w04-s086", "bank": "re", "week": 4, "title": "Practice", "prompt": "Two lease proposals are discounted at the required common rate. Proposal B has NPV of $265,500 versus Proposal A's $260,000. A has documented strong tenant credit; B's credit evidence is missing. What is the most defensible next step?", "fingerprint": "f1d6c8b1897f19f552495e375960cf4dd551ba6b1929e953e3475bfd4beb9948", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s086", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 88, "answer_slides": [ 89 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x09", "canonical_id": "re-w04-x09", "bank": "re", "week": 4, "title": "Lease proposal valuation with TI timing", "prompt": "A landlord compares two three-year industrial leases at an 8.00% annual discount rate. Lease A requires $70,000 of TI today and pays $180,000, $185,000, and $190,000 at the next three year-ends. Lease B requires $110,000 of TI today and pays $200,000, $205,000, and $210,000 at those same dates. All operating expenses, credit risk, and exit proceeds are identical. What is B’s incremental NPV relative to A? Round to the nearest $100.", "fingerprint": "6706f72955df160c3c07eef935b26a47dc6c9438e46d33aad1e22abe18fd433f", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-x09", "locations": [] }, { "id": "re-w04-s089", "canonical_id": "re-w04-s089", "bank": "re", "week": 4, "title": "Practice", "prompt": "A landlord is choosing between two three-year leases for the same space. After reviewing the tenants' financial statements, the analyst prepares this forecast:\nThe expected collections already reflect the analyst's allowance for missed payments. Annual operating costs are $30,000 under either lease, paid at each year-end. Use an 8% annual discount rate for both alternatives. There are no other cash flows or residual values.\nWhat is the expected incremental NPV of choosing Tenant B rather than Tenant A, rounded to the nearest $100?", "fingerprint": "9d28452f7b1e4f8b7c75c594674cf4e60c6af19afe104a2e2b128b0a6006055c", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s089", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 91, "answer_slides": [ 92 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x11", "canonical_id": "re-w04-x11", "bank": "re", "week": 4, "title": "Two-variable exit sensitivity", "prompt": "A base-case Year 5 exit uses $720,000 of Year 6 NOI and a 6.00% exit cap rate. In the downside case, Year 6 NOI is 8.00% lower and the exit cap rate is 6.75%. Both cases pay selling costs of 2.00% of gross value. What is the dollar reduction in net sale proceeds from the base case to the downside case? Ignore debt and taxes. Round to the nearest $100.", "fingerprint": "6c41a7342ffe459bfedad6dbcbf7525c7128113a65205b58e64280fefbc8755e", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-x11", "locations": [] }, { "id": "re-w04-s092", "canonical_id": "re-w04-s092", "bank": "re", "week": 4, "title": "Practice", "prompt": "Assume no separate reserve contribution or release. Apply the stated NOI covenant.\nStressed NOI is $567,000, annual debt service is $450,000, and capital expenditures paid from current-year cash are $60,000. The lender's ongoing DSCR minimum is 1.40x using NOI before reserves. Which conclusion is correct?", "fingerprint": "4e6aa3112a64f68cb7f98b3ea672d59154cb171de8c81886235f7505bd0938d7", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s092", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 94, "answer_slides": [ 95 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s094", "canonical_id": "re-w04-s094", "bank": "re", "week": 4, "title": "Practice", "prompt": "A property is forecast to generate $598,000 of annual NOI. Annual debt service is $460,000, and planned capital spending is $115,000, including $20,000 of tenant improvements.\nThe lender permits distributions only if NOI divided by annual debt service is at least 1.35x. Capital spending is excluded from that NOI calculation. The investor also wants at least $50,000 of annual cash available after debt service and all planned capital spending.\nThe leasing team can increase collected rent without changing operating expenses, debt service, or capital spending. Every additional dollar of rent therefore increases NOI by one dollar.\nWhat is the minimum increase in annual NOI needed to meet both requirements?", "fingerprint": "b235d3475cca02bbc48b8e4b3f9f3f273a83c23bd8ee2ab38b64f8a9fc7b8c55", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s094", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 96, "answer_slides": [ 97 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s097", "canonical_id": "re-w04-s097", "bank": "re", "week": 4, "title": "Practice", "prompt": "A recession reduces a tenant's sales and liquidity. The lease still bills base rent and expense reimbursements, but reimbursements are paid after expenses are incurred and the landlord must keep paying taxes, insurance, maintenance, and debt service. Which downside case is most coherent?", "fingerprint": "d22e9cbbbaba758f193c319f55ec7eaadfd3a112dbaf738d86cde17c37b9c040", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s097", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 99, "answer_slides": [ 100 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-s100", "canonical_id": "re-w04-s100", "bank": "re", "week": 4, "title": "Practice", "prompt": "Use a cash-payment basis. “Permanent” means a changed economic assumption, not an effect that lasts forever.\nThree variances appear in a property’s Q2 forecast-to-actual review: 1. The annual insurance premium renewed 25% above forecast. 2. A $30,000 property tax payment forecast for June was paid in July. 3. A tenant who was forecast to renew vacated, and the space is expected to take nine months to re-lease at a lower rent. How should each variance be classified?", "fingerprint": "0bbd4ada34bb8cdd6a0c5fd87d80b7e3a92daa385973e29a717355a26842e19a", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w04-s100", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 102, "answer_slides": [ 103 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w04-x10", "canonical_id": "re-w04-x10", "bank": "re", "week": 4, "title": "Minimum liquidity from monthly deficits", "prompt": "A property begins April with $75,000 of unrestricted cash. Net operating cash after debt service is +$20,000 in April, −$15,000 in May, and +$25,000 in June. A $100,000 roof invoice is paid at the end of April after April’s operating cash arrives. A $60,000 insurance recovery arrives at the end of June after June’s operating cash. The owner must maintain at least $30,000 of unrestricted cash at each month-end. What one-time contribution at the start of April is minimally sufficient? Round to the nearest dollar.", "fingerprint": "2a2be7676d7713f67c2661ba3136102902f1594e0424b8d3a6df7d0c940e2857", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Cash flow modeling", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-x10", "locations": [] }, { "id": "re-w04-s103", "canonical_id": "re-w04-s103", "bank": "re", "week": 4, "title": "Practice", "prompt": "A property starts a quarter with $20,000 of unrestricted cash. Its original quarterly forecast shows:\nA tenant review now indicates that 10% of the base rent will not be collected during this quarter. All $45,000 of expense reimbursements will arrive in the next quarter instead. Operating expenses, debt service, and required capital spending must still be paid this quarter.\nAll current-quarter collections arrive before the payments are due. There are no other receipts, reserves, or borrowing sources. What is the minimum additional cash contribution needed to make all payments this quarter and finish with no negative cash balance?", "fingerprint": "cb469133f1bb85e3fab788e87e83ca18041e656ee8563e6307e9cd701329cd2b", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Cash flow modeling", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w04-s103", "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 105, "answer_slides": [ 106 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x01", "canonical_id": "re-w05-x01", "bank": "re", "week": 5, "title": "Forward NOI and direct capitalization", "prompt": "A stabilized retail center collected $960,000 of effective gross income and incurred $340,000 of operating expenses last year. Next year, effective gross income is forecast to increase by 3.00% and operating expenses by 5.00%. Capital replacements of $65,000 are below NOI. Comparable cap rates of 6.25% use next-year NOI before capital replacements. What property value follows from direct capitalization? Round to the nearest $100.", "fingerprint": "2318bbde09d1dcb0fc1f69450fc33007b9c5e372d5c77d586f52bf7b237077dd", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x01", "locations": [] }, { "id": "re-w05-x17", "canonical_id": "re-w05-x17", "bank": "re", "week": 5, "title": "NOI needed to support a price premium", "prompt": "A buyer is considering a $9,600,000 offer for a stabilized warehouse. Current supported annual NOI is $552,000. To justify the offer, the buyer requires a 6.25% cap rate on stabilized NOI using the same expense convention. What additional annual NOI is needed? Ignore acquisition costs and financing. Round to the nearest dollar.", "fingerprint": "89c4fc2f3597e85f34e5d36a227ecbb570c6571ba01c05879b931bdc9bec92f0", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x17", "locations": [] }, { "id": "re-w05-s005", "canonical_id": "re-w05-s005", "bank": "re", "week": 5, "title": "Practice", "prompt": "An appraiser is valuing a stabilized suburban office building with $500,000 in stabilized NOI. Comparable sales support cap rates between 5.0% and 6.5%. What value range is implied by the comparables?", "fingerprint": "636f16676cf034433864b37bc13cf68adbc2a2aef0a39de24685dd04fa30fc31", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s005", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 5, "answer_slides": [ 6 ], "continuation_slides": [], "match": "stem and answer choices" }, { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "review variant; primary exact source retained" } ] }, { "id": "re-w05-s007", "canonical_id": "re-w05-s007", "bank": "re", "week": 5, "title": "Direct Capitalization", "prompt": "An investor is evaluating a stabilized industrial property. The seller reports the following annual operating results:\nEffective gross income: $1,100,000.\nOperating expenses: $450,000, including $50,000 for property insurance.\nThe buyer obtains a binding insurance quote of $100,000 per year. All other income and operating expenses are expected to remain unchanged. The comparable sales support a 6.25% capitalization rate applied to the property's annual NOI after updating the insurance expense. No additional adjustment is needed for reserves or capital expenditures in this valuation.\nThe seller also reports a $6,000,000 mortgage balance and $360,000 of annual debt service. The buyer is estimating the value of the property before financing, rather than the seller's equity.\nWhat property value is supported by the adjusted operating results?", "fingerprint": "f805f226aaffc03b37ed8e039a64fa7a1b6cbdf35aa0ec91024bfeca64094ad2", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s007", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 7, "answer_slides": [ 8 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s009", "canonical_id": "re-w05-s009", "bank": "re", "week": 5, "title": "Practice", "prompt": "Consider three properties:\nProperty 1: a fully leased grocery-anchored retail center with market rents and recent comparable sales nearby.\nProperty 2: an office building at 60% occupancy undergoing a two-year repositioning.\nProperty 3: a stabilized apartment complex in a market with no comparable sales in the past three years and no other supported cap-rate evidence provided.\nWhich assessment of direct capitalization as the primary valuation method is best supported by this information?", "fingerprint": "72fe1efd418de19d94ef86fae67d39630d461aaa15a0fc6db924089aadd0f5ae", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-s009", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 9, "answer_slides": [ 10 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x02", "canonical_id": "re-w05-x02", "bank": "re", "week": 5, "title": "Income and cap-rate sensitivity", "prompt": "A valuation committee considers two supported scenarios for an apartment building. The conservative scenario uses $585,000 of stabilized NOI and a 6.50% cap rate. The optimistic scenario uses $630,000 of NOI and a 5.75% cap rate. Both use the same NOI definition. What is the difference between the optimistic and conservative property values? Round to the nearest $100.", "fingerprint": "660da2c83a408f3c2799ee11521c8477d4ede8e427a7bca17b29692964454405", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x02", "locations": [] }, { "id": "re-w05-s012", "canonical_id": "re-w05-s012", "bank": "re", "week": 5, "title": "Practice", "prompt": "A comparable property sold for $10,000,000. Its trailing-year NOI was $540,000, and its supported next-year NOI is $600,000. You will value the subject using next-year NOI. Assume the comparable’s operating-expense and capital-cost conventions match the subject’s. Which is the best next step?", "fingerprint": "40983c5b6f0f0cb510104fc9c7f40f8e5c7e5de4af42a83161407c8b68d126cd", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s012", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 12, "answer_slides": [ 13 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s016", "canonical_id": "re-w05-s016", "bank": "re", "week": 5, "title": "Practice", "prompt": "Assume next-year NOI equals distributable property cash flow, that cash flow grows at a constant rate forever, and the required unlevered return is 8.0%. A property trades at a 4.5% cap rate measured on next-year NOI. Which interpretation is most defensible?", "fingerprint": "abf54d3087c9a53117a30def8123414da447851d121963f058f8c7548bb2e2a2", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s016", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 16, "answer_slides": [ 17 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x06", "canonical_id": "re-w05-x06", "bank": "re", "week": 5, "title": "Lease-up DCF with a capital outlay", "prompt": "A vacant industrial property requires $300,000 of improvements today. Year 1 produces no operating cash. Net operating cash after all later capital costs is $360,000 at the end of Year 2 and $390,000 at the end of Year 3. Net sale proceeds of $5,400,000 arrive with the Year 3 cash flow. At a 12.00% annual required return, what maximum property price can be paid today, in addition to the separate $300,000 improvement outlay? Ignore acquisition fees. Round to the nearest $100.", "fingerprint": "56bddf9be8a6a7eb4c96450ad1ce7bc8ef84228645fa616a13cad1b4a160cdc3", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-x06", "locations": [] }, { "id": "re-w05-s020", "canonical_id": "re-w05-s020", "bank": "re", "week": 5, "title": "Practice", "prompt": "An analyst is valuing a property on an unlevered basis and separately evaluating the equity investment her fund would make on a levered basis. For each analysis, which cash flow should she discount, and which discount rate should she use?", "fingerprint": "d8b0a6e7c2203ac2b40315cd44c3c4c2250eda5b6389196ca0dd3b6350301a88", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s020", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 20, "answer_slides": [ 21 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x05", "canonical_id": "re-w05-x05", "bank": "re", "week": 5, "title": "DCF with uneven operating cash flows", "prompt": "An unlevered investor forecasts property cash flow after all operating expenses and capital needs of $260,000, $340,000, and $420,000 at the ends of Years 1, 2, and 3. A sale at the end of Year 3 will provide an additional $4,800,000 after selling costs. The required annual return is 10.00%. What is the present value of these future receipts before acquisition costs? Round to the nearest $100.", "fingerprint": "d02072b09d1b0f83cb809620059a79633c345e9da4f2d64e7eb79e75048297bb", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-x05", "locations": [] }, { "id": "re-w05-x19", "canonical_id": "re-w05-x19", "bank": "re", "week": 5, "title": "Value of a delayed sale receipt", "prompt": "A property sale is expected to generate exactly $4,000,000 of net proceeds at the end of Year 2. A legal delay would move that same receipt to the end of Year 3. The delay produces no extra operating cash, expenses, or change in sale price. At an 8.00% annual required return, what is the reduction in present value caused only by the one-year delay? Round to the nearest $100.", "fingerprint": "e0281840c14e4b2c2858bac58c473276d6cac67382f05ccce9dc3d952e1d1430", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x19", "locations": [] }, { "id": "re-w05-s024", "canonical_id": "re-w05-s024", "bank": "re", "week": 5, "title": "Practice", "prompt": "A property forecasts $1,000,000 of NOI, $100,000 of capital expenditures, and $50,000 of tenant improvements and leasing commissions for the year. The capital and leasing costs are separate cash payments below NOI. Annual debt service is $200,000, and accounting depreciation is $80,000. There are no other cash adjustments. Which cash flow belongs in an unlevered, before-tax property DCF?", "fingerprint": "93b098522a61c50afe6ad279868323f11d6482f371b451deb1654928daf3236b", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Cash flow modeling", "finance_methods_to_review": [ "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s024", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 24, "answer_slides": [ 25 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x08", "canonical_id": "re-w05-x08", "bank": "re", "week": 5, "title": "Net terminal proceeds from forward NOI", "prompt": "A property will be sold immediately after Year 4 operations. Year 4 NOI is $540,000 and Year 5 NOI is forecast to grow by 3.00%. The exit cap rate is 6.25% and is applied to Year 5 NOI. Selling costs are 2.00% of gross sale price. What net sale proceeds should be included at the end of Year 4, excluding Year 4 operating cash and any debt payoff? Round to the nearest $100.", "fingerprint": "775b3f7da2d507603a1261ff848141360fcc1bfdf46d80f79f2b1e3c9d61d9e1", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x08", "locations": [] }, { "id": "re-w05-x10", "canonical_id": "re-w05-x10", "bank": "re", "week": 5, "title": "Maximum bid with percentage closing costs", "prompt": "The present value of a property’s future unlevered cash flows is $7,850,000. A buyer must pay acquisition closing costs equal to 2.00% of the negotiated property price plus $190,000 of immediate improvements. Neither item is included in the projected future cash flows. What maximum property price produces an NPV of zero? Round to the nearest $100.", "fingerprint": "e1f3552ca38643d7f0c3bbcb706bfa057c832ef7dd975670d1b56f22abc12e0e", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x10", "locations": [] }, { "id": "re-w05-x11", "canonical_id": "re-w05-x11", "bank": "re", "week": 5, "title": "Acquisition NPV with an immediate reserve", "prompt": "An acquisition requires a $2,600,000 price, $65,000 of closing costs, and a $35,000 nonrecoverable capital reserve funded today. End-of-year property cash flows after use of that reserve are $210,000 in Year 1 and $225,000 in Year 2. Year 2 also includes $3,050,000 of net sale proceeds. At an 11.00% required annual return, what is the acquisition NPV? No financing is used. Round to the nearest $100.", "fingerprint": "357919d1592e913d2e492a3ac99996a4f24444c9ec342e42fa5d0d2f6e04520c", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-x11", "locations": [] }, { "id": "re-w05-x16", "canonical_id": "re-w05-x16", "bank": "re", "week": 5, "title": "Required exit price at a return hurdle", "prompt": "A buyer invests $3,200,000 today without debt and receives $240,000 at the end of each of Years 1, 2, and 3. The property is sold with the Year 3 distribution. Selling costs will be 2.00% of the gross sale price. What gross Year 3 sale price is required to earn a 10.00% annual IRR, assuming no other cash flows? Round to the nearest $100.", "fingerprint": "9d44e200d42aa969697098531a603d645ab4f8a65eb5cb9bac5f5aa1780e5a84", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-x16", "locations": [] }, { "id": "re-w05-s029", "canonical_id": "re-w05-s029", "bank": "re", "week": 5, "title": "Practice", "prompt": "Use the five-year property’s rounded DCF value of $24,638,813. The proposed purchase price is $24,000,000, and additional acquisition and closing costs are a fixed $800,000, paid immediately. There is no debt or other initial cash use. At the same required return, what are the approximate NPV and the maximum purchase price for a zero-NPV acquisition?", "fingerprint": "d1ba11c1d2af00597ccb5eebc375e48e7f94a3556b837e6f298e42908b6f3e11", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s029", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 29, "answer_slides": [ 30 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x07", "canonical_id": "re-w05-x07", "bank": "re", "week": 5, "title": "Finite leasehold without terminal value", "prompt": "An investor can buy the remaining four years of a ground-lease interest. Net cash available to the investor is $180,000 at each year-end. At the end of Year 4, all property rights revert to the landowner without compensation, and a separate $45,000 restoration payment is due. There is no renewal option or resale value. The required annual return is 9.00%. What is the maximum purchase price today? Round to the nearest $100.", "fingerprint": "7a6cd71fffce80e1ed6615ccf9a3a1b94827c39edf73ac79fd287a317b175312", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-x07", "locations": [] }, { "id": "re-w05-s032", "canonical_id": "re-w05-s032", "bank": "re", "week": 5, "title": "Practice", "prompt": "An investor can acquire the remaining four-year leasehold interest in an industrial property for $410,000 today. The investor will collect rent from the building's subtenants and pay ground rent and property operating expenses. The forecast is:\nAt the end of Year 4, the ground lease expires and the building reverts to the landowner without compensation. The investor has no renewal right or residual interest. The lease also requires a $35,000 restoration payment at expiration, in addition to the expenses in the table. There are no taxes, financing flows, or other cash flows.\nAt an 11.00% annual required return, what is the leasehold acquisition's NPV today, rounded to the nearest $1,000?", "fingerprint": "f7ad8f2411f5f913e6454f676a1cf2d6d320c0605fa34e889fbb22f36d9dac57", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-s032", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x09", "canonical_id": "re-w05-x09", "bank": "re", "week": 5, "title": "Sale before stabilization", "prompt": "At a projected sale date, a partly leased office building would be worth $12,000,000 if fully stabilized. The buyer requires deductions of $540,000 for remaining improvements, $210,000 for leasing costs, $330,000 for the present value of remaining operating shortfalls, and $420,000 for execution risk and profit. These deductions are separate and nonoverlapping. Selling costs are 2.00% of the resulting as-is price. What net sale proceeds should the seller forecast? Round to the nearest $100.", "fingerprint": "6008a917f1485631ca0797eadad0557c37ab23239201da4306ef468eb5a73b23", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x09", "locations": [] }, { "id": "re-w05-s036", "canonical_id": "re-w05-s036", "bank": "re", "week": 5, "title": "Practice", "prompt": "An investor plans to sell an office property at the end of Year 3. The forecast at that sale date shows:\nOccupancy of 70%, with stabilized occupancy of 95% first expected in Year 5.\nAdditional tenant improvements, leasing commissions, and below-stabilized rental income during Year 4.\nA supported market cap rate derived from comparable properties that are already stabilized.\nThe buyer will acquire the property's continuing income and will bear the remaining lease-up costs. Which approach best estimates the seller's net sale proceeds at the end of Year 3?", "fingerprint": "cb651bb5d3f5247de0194dcdf190c1732788f83a004d678fb25bc5efd03ec345", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-s036", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 36, "answer_slides": [ 37 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s038", "canonical_id": "re-w05-s038", "bank": "re", "week": 5, "title": "Valuation During Lease-Up", "prompt": "A suburban office property is 60% occupied. Its largest vacant suite needs substantial tenant improvements before a new tenant can move in. The broker expects occupancy to reach 92% over two years, but no lease has been signed for that suite. Recent comparable sales involve buildings that are already stabilized.\nThe seller applies the comparable buildings' capitalization rate to the NOI expected after the proposed lease-up and presents the result as the property's value today. The estimate makes no allowance for the intervening vacancy, leasing costs, or execution risk.\nWhich response would most improve the buyer's valuation analysis?", "fingerprint": "633f88bcadbcd3ec9ad173b7274b14a13eb07d07d8fbc07222ab7ca5c4ee3d58", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-s038", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 38, "answer_slides": [ 39 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x18", "canonical_id": "re-w05-x18", "bank": "re", "week": 5, "title": "Present-value impact of exit-cap expansion", "prompt": "A three-year DCF keeps all operating cash flows unchanged. Year 4 NOI is $690,000. The analyst increases the Year 3 exit cap rate from 6.00% to 6.50%. Selling costs remain 2.00% of gross value and the annual discount rate remains 10.00%. By how much does the estimated property value today decrease? Round to the nearest $100.", "fingerprint": "8e227190d52454e1482ec3ba58f7d1e487062837b7ab823d43c533269a0c28f8", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-x18", "locations": [] }, { "id": "re-w05-s041", "canonical_id": "re-w05-s041", "bank": "re", "week": 5, "title": "Practice", "prompt": "An unlevered DCF assumes an end-of-Year-5 sale, $1,800,000 of forward NOI, a 6.00% exit cap rate, 2.0% selling costs, and an 8.0% annual discount rate. Only the exit cap rate changes, to 6.50%. What happens to gross sale value and today’s DCF value?", "fingerprint": "9553cee67e03c86efa770d8c69b18a063a58dbd785f3996d6c92a629c0319241", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-s041", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 41, "answer_slides": [ 42 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x13", "canonical_id": "re-w05-x13", "bank": "re", "week": 5, "title": "Unlevered IRR with two years of cash flow", "prompt": "An all-cash purchase requires $4,200,000 today, including closing costs. The property produces $330,000 at the end of Year 1 and $360,000 at the end of Year 2, after all capital spending. A sale at the end of Year 2 produces an additional $4,650,000 net of selling costs. What annual unlevered IRR does this investment generate? Round to two decimal places.", "fingerprint": "4667cf7e862fa4b9fdfb1380789b494adf277727906b17c8a53ef961a0d4543d", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x13", "locations": [] }, { "id": "re-w05-x15", "canonical_id": "re-w05-x15", "bank": "re", "week": 5, "title": "Equity multiple with separate operating distributions", "prompt": "Partners contribute $2,750,000 at acquisition and never contribute again. Over the holding period, they receive $640,000 of operating distributions. The final sale distributes $3,410,000 to equity after selling costs and full debt repayment; this amount excludes the earlier operating distributions. What is the investment’s equity multiple? Round to two decimal places.", "fingerprint": "87d09bae5f741f20ca2f271a86d561db9a6db4b7d3c83bd805d4bcd3b9657f3f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x15", "locations": [] }, { "id": "re-w05-s044", "canonical_id": "re-w05-s044", "bank": "re", "week": 5, "title": "Practice", "prompt": "An investor contributes $8,638,813 of equity to acquire a property. Over the hold period, the investor receives $1,895,776 of operating cash flow and $12,377,429 of net equity proceeds at sale. Total distributions are $14,273,205.\nWhat is the equity multiple?", "fingerprint": "3ef179282d5fb0ba725a490741512df10c42f32924209db7b754eaa9570e0146", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w05-s044", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 44, "answer_slides": [ 45 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s047", "canonical_id": "re-w05-s047", "bank": "re", "week": 5, "title": "Practice", "prompt": "Two forecast equity investments each require $1,000,000 today and return $2,000,000 in a single final distribution, with no interim distributions or later capital contributions. Investment A owns a stabilized property and distributes the cash at the end of Year 6. Investment B requires redevelopment and distributes the cash at the end of Year 3. Which assessment is most defensible?", "fingerprint": "347b447d6b549f6f2399a72658402ff43acad2bccb0ecc66218bacbc98b1706e", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-s047", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 47, "answer_slides": [ 48 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x14", "canonical_id": "re-w05-x14", "bank": "re", "week": 5, "title": "Levered IRR after interest and payoff", "prompt": "A property costs $5,000,000 with no acquisition fees. An interest-only loan funds $3,000,000 at 6.00% annually. Property cash before debt is $380,000 at the end of Year 1 and $410,000 at the end of Year 2. At the end of Year 2, net property sale proceeds are $5,400,000 before loan repayment. Interest is paid at each year-end and principal is repaid at sale. What annual equity IRR results? Round to two decimal places.", "fingerprint": "26fc766fe1113cb6559a1f57c930213fb8736ad72173cd3bc75c4a13274147d9", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-x14", "locations": [] }, { "id": "re-w05-s050", "canonical_id": "re-w05-s050", "bank": "re", "week": 5, "title": "Practice", "prompt": "Using financial leverage on a real estate investment is for the purpose of all of the following except:", "fingerprint": "7cc74d27f39d6b7fef6817c07480290bb5ee61a094dc35e7b1289ab35d5c752a", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w05-s050", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 50, "answer_slides": [ 51 ], "continuation_slides": [], "match": "stem and answer choices" }, { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 77, "answer_slides": [ 78 ], "continuation_slides": [], "match": "review variant; primary exact source retained" } ] }, { "id": "re-w05-s052", "canonical_id": "re-w05-s052", "bank": "re", "week": 5, "title": "Practice", "prompt": "A property costs $10,000,000, funded with a $6,000,000 loan and $4,000,000 of equity. There are no acquisition costs or later equity contributions in this simplified example. Annual debt service is fixed at $480,000. Property cash flow after capital and leasing costs but before debt service falls from $800,000 to $600,000. What are the new annual equity cash yield and property cash yield?", "fingerprint": "adbd6f8a3e206279a8f9e20367c7adf3f62f323c19e2773508aef4138105284d", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s052", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 52, "answer_slides": [ 53 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s055", "canonical_id": "re-w05-s055", "bank": "re", "week": 5, "title": "Practice", "prompt": "Which ratios directly measure an income property's debt exposure or ability to service debt?", "fingerprint": "1567eb61567427d2585cbf8e0ae4d2638ad8a5c5d985b9e64d8f2fe4354a5bb6", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w05-s055", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 55, "answer_slides": [ 56 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s057", "canonical_id": "re-w05-s057", "bank": "re", "week": 5, "title": "Practice", "prompt": "The acquisition price of a property is $3,800,000. The loan amount is $2,850,000. If the property's NOI is expected to be $225,600 and the annual debt service $199,870, the debt coverage ratio (DCR) is approximately equal to:", "fingerprint": "1d93345f0c4d62c2717032b78f85cd2fee2562239f18dd13f5f125620669f318", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s057", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 57, "answer_slides": [ 58 ], "continuation_slides": [], "match": "stem and answer choices" }, { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 81, "answer_slides": [ 82 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s060", "canonical_id": "re-w05-s060", "bank": "re", "week": 5, "title": "Practice", "prompt": "A direct-cap estimate is $10,000,000. A DCF produces the same $10,000,000 value before including a required $2,000,000 roof replacement paid at the end of Year 2. Use an 8.0% annual discount rate. Assume the roof cost is absent from both initial estimates and that it causes no other change to operating cash flows or exit value. How should the difference be reconciled?", "fingerprint": "f6ec265ecdf1cb92306bb2d07251b2eeb752af396a9af424f776a061d5224bbd", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s060", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 60, "answer_slides": [ 61 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x03", "canonical_id": "re-w05-x03", "bank": "re", "week": 5, "title": "Band-of-investment cap rate", "prompt": "A lender will finance 60.00% of a stabilized property’s price at a 6.00% annual interest rate. Including amortization, annual debt service is 7.20% of the initial loan balance. Investors require a 9.00% first-year cash-on-cash return on the remaining 40.00% equity. Assume first-year NOI is entirely available for debt service and equity distributions, with no capital spending or reserves. What overall cap rate satisfies these stated cash-yield requirements? Round to two decimal places.", "fingerprint": "14764077bdbc8d673aeaf7af85e781d4f6d70f3cc8bead43374fc2afeb233ed2", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x03", "locations": [] }, { "id": "re-w05-s065", "canonical_id": "re-w05-s065", "bank": "re", "week": 5, "title": "Practice", "prompt": "A band-of-investment estimate uses 60% debt and 40% equity. The loan’s interest rate is 5.0%, its annual mortgage constant is 6.0%, and investors require a 10.0% equity dividend rate and a 14.0% equity IRR. Assume no additional capital deductions from the income being allocated. Which indicated cap rate and input choice are correct?", "fingerprint": "e9b8c044d7a45b9bda079f93e92a74a57cd05dced76a7f17c1827cf8a36316b0", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s065", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 65, "answer_slides": [ 66 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-x04", "canonical_id": "re-w05-x04", "bank": "re", "week": 5, "title": "Stable growth with recurring capital spending", "prompt": "A fully stabilized property is expected to generate $720,000 of NOI next year. Recurring capital replacements will be $90,000 next year. The resulting unlevered cash flow is expected to grow at 2.00% annually forever. Investors require an 8.50% annual unlevered return. There is no separate sale or financing cash flow. What value does the constant-growth model imply today? Round to the nearest $100.", "fingerprint": "ee32782397514bc2c592c8fbd3f668d5d6f8b02ce8bae99fe0fffa8f327fb112", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x04", "locations": [] }, { "id": "re-w05-x12", "canonical_id": "re-w05-x12", "bank": "re", "week": 5, "title": "Portfolio property value to common equity", "prompt": "A property company owns three buildings valued at $8,400,000, $6,700,000, and $4,900,000. It also has $650,000 of unrestricted cash. Mortgage payoffs total $11,300,000, a preferred equity claim is $1,200,000, and other liabilities are $250,000. Assume these claims are separate and each is deducted at its stated amount. What value is attributable to common equity? Round to the nearest dollar.", "fingerprint": "17b6a2e44937c01b33a78d63bbbe78af76eb2680448eea8135acd76226717e0b", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-x12", "locations": [] }, { "id": "re-w05-s069", "canonical_id": "re-w05-s069", "bank": "re", "week": 5, "title": "Practice", "prompt": "A real estate fund owns a portfolio of distribution warehouses. Expected annual cash flow is $1.20 million, $1.60 million, and $2.00 million at the ends of Years 1, 2, and 3. These amounts are after property operating expenses, capital and leasing expenditures, and fund operating costs, but before interest and debt repayment.\nBy the end of Year 3, the portfolio is expected to be stabilized. Year 4 cash flow on the same basis is $2.06 million and is expected to grow 3.00% annually thereafter. The forecast already deducts the recurring reinvestment needed to sustain that growth. The fund has no fixed liquidation date. Use a 10.00% WACC, consistent with these cash flows, for all periods.\nToday the fund has $6.00 million of debt at market value and $1.40 million of excess cash that is not needed for operations or included in the forecast. There are no entity-level income taxes, investor taxes, other assets, or other claims. What is the estimated value of the fund's equity today, rounded to the nearest $10,000?", "fingerprint": "0a5d49bbdf16db98b21834501ba0d7b8560baf6f358d020aea3ba51652194d0c", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-s069", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 69, "answer_slides": [ 70 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s073", "canonical_id": "re-w05-s073", "bank": "re", "week": 5, "title": "Practice", "prompt": "An appraiser is valuing a stabilized suburban office building with $500,000 in stabilized NOI. Comparable sales support cap rates between 5.0% and 6.5%. What value range is implied by the comparables?", "fingerprint": "5cfe9bdf44e3d4a86f38c32d68f4740c64444257fa77f1be1d7c5675eb70abd2", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s073", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 5, "answer_slides": [ 6 ], "continuation_slides": [], "match": "stem and answer choices" }, { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s075", "canonical_id": "re-w05-s075", "bank": "re", "week": 5, "title": "Practice", "prompt": "Using only the stated evidence, classify each property as a good or poor candidate for direct capitalization as the primary method. For Property 3, assume no other supported cap-rate evidence is available.\nPROPERTY 1 A fully leased grocery-anchored retail center with rents at market and recent comparable sales nearby.\nPROPERTY 2 An office building at 60% occupancy undergoing a two-year repositioning.\nPROPERTY 3 A stabilized apartment complex in a market with no comparable sales in the past three years.", "fingerprint": "d7cc723c05385e3f4930e13b0f0117bbdeae3587e55f5aefee9c3b95a91b7b98", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w05-s075", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 75, "answer_slides": [ 76 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s077", "canonical_id": "re-w05-s077", "bank": "re", "week": 5, "title": "Practice", "prompt": "Using financial leverage on a real estate investment is for the purpose of all of the following except:", "fingerprint": "fa9d823b139a767f8169ed32c192c121994b350d058f02290df7f0dd6baa66be", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w05-s077", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 50, "answer_slides": [ 51 ], "continuation_slides": [], "match": "stem and answer choices" }, { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 77, "answer_slides": [ 78 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s079", "canonical_id": "re-w05-s079", "bank": "re", "week": 5, "title": "Practice", "prompt": "Which combination of these ratios directly measures an income property's debt-service capacity or collateral leverage?", "fingerprint": "4a0afa58685917262fcbe9f8dbfdab6c843431d8fdcfbd4cc96ceebe26b3d912", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w05-s079", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 79, "answer_slides": [ 80 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w05-s081", "canonical_id": "re-w05-s081", "bank": "re", "week": 5, "title": "Practice", "prompt": "The acquisition price of a property is $3,800,000. The loan amount is $2,850,000. If the property's NOI is expected to be $225,600, and the annual debt service $199,870, the debt coverage ratio (DCR) is approximately equal to:", "fingerprint": "ff3e9618fb992d0109d50e484acff80fbc515344369d33918ce56ee8a6a4c565", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w05-s081", "locations": [ { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 57, "answer_slides": [ 58 ], "continuation_slides": [], "match": "stem and answer choices" }, { "deck_id": "141AEOH2xdYK0c3b8bEzrrPhcchpjVAWP", "deck_name": "Week 5 - FNCE 118 & FNCE 128 - Direct Capitalization and DCF Valuation - Shared Master.pptx", "question_slide": 81, "answer_slides": [ 82 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-s004", "canonical_id": "re-w06-s004", "bank": "re", "week": 6, "title": "Practice", "prompt": "An appraiser concludes that a stabilized apartment property has a market value of $10,000,000. Three months later, the property sells for $9,300,000, and the investment committee asks whether the appraisal was defective based only on that difference. What is the best response?", "fingerprint": "337271f0d0db2145f7ee14ecbcb19c84c30b556ad3ca873fef34531f822a2394", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-s004", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 4, "answer_slides": [ 5 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x17", "canonical_id": "re-w06-x17", "bank": "re", "week": 6, "title": "DCF compared with a comparable-sale indication", "prompt": "Adjusted comparables indicate $6,000,000 for a warehouse. An investor’s forecast produces $420,000 at the end of Year 1 and $440,000 at the end of Year 2, plus $6,300,000 of net sale proceeds at Year 2. The required annual return is 10.00%. Ignore acquisition costs. By how much does this investor’s DCF value exceed the comparable-sale indication? A negative result means DCF is lower. Round to the nearest $100.", "fingerprint": "33c6ac0bbdeec90c76181e5c19ceccbd0b95f2619cb1d1e6fecdd231cf90cb16", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-x17", "locations": [] }, { "id": "re-w06-s009", "canonical_id": "re-w06-s009", "bank": "re", "week": 6, "title": "Practice", "prompt": "An apartment property is 60% occupied and needs two years of renovation and lease-up. A broker capitalizes its projected stabilized NOI and presents that future stabilized value as today's as-is value. Which treatment best addresses the transition?", "fingerprint": "0c7f289fb9a96c16b84507acb08a01de761b919df8098be674d5054448f4a2b5", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-s009", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 9, "answer_slides": [ 10 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-s012", "canonical_id": "re-w06-s012", "bank": "re", "week": 6, "title": "Practice", "prompt": "A property generates $120,000 of annual operating cash flow after capital spending for three years. It also produces $1,600,000 of net sale proceeds at the end of Year 3, after selling costs. All cash flows occur at year-end, with no debt or other cash flows.\nAt an investor's 8% annual unlevered required return, what is the present value of these future cash flows, rounded to the nearest $1,000?", "fingerprint": "0c453911c0788051ea723854e769cfffb8ba2540a344ed064670ff4f1d50f3ad", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s012", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 12, "answer_slides": [ 13 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-s014", "canonical_id": "re-w06-s014", "bank": "re", "week": 6, "title": "Practice", "prompt": "Use a 10% annual unlevered required return and year-end cash flows. Amounts are in $000. Capital expenditures are below NOI; net sale proceeds are after selling costs. Assume no debt or other cash flows.\nWhat is the DCF value today, rounded to the nearest $1,000?", "fingerprint": "d2acbbb4f29ae68310cedcc759bd25f6bc998f75bd1b11089fd74b23bec735f2", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s014", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 14, "answer_slides": [ 15 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x11", "canonical_id": "re-w06-x11", "bank": "re", "week": 6, "title": "Discount from asking price", "prompt": "A seller asks $12,400,000 for an office building. After examining lease rollover, an investor estimates investment value at $10,850,000. Express the required reduction from asking price as a percentage of the seller’s asking price. Ignore transaction costs. Round to two decimal places.", "fingerprint": "470b9afb2ef421ff1fcb4ead0e419243ff580d5c93504ad26091c62b2fdfda03", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x11", "locations": [] }, { "id": "re-w06-s019", "canonical_id": "re-w06-s019", "bank": "re", "week": 6, "title": "Practice", "prompt": "Two apartment offerings have the same asking price and reported annual gross rent. A uses potential rent before vacancy. B uses rent after vacancy and reports higher operating expenses. The broker calls them equally attractive because their quoted GRMs match. What is the best response?", "fingerprint": "be0338fcdb342b795869f53112e233d7eaf5e74e5c56a6c362861e7377785196", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-s019", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 19, "answer_slides": [ 20 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-s021", "canonical_id": "re-w06-s021", "bank": "re", "week": 6, "title": "Practice", "prompt": "A 120-unit multifamily property generates $1,650,000 of NOI. Comparable properties trade at ~$250,000/unit and 5.50% cap rate. A broker suggests an asking price of $36,000,000.\nWhich combination gives the asking price per unit, implied cap rate, and asking-price premium over the value indicated by those comparable benchmarks? Round cap rates to one decimal place.", "fingerprint": "a23ce40b198dffc3ee8aa1f3a486be94cdd32c9898fb037e8c487473dd737970", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s021", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 21, "answer_slides": [ 22 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x01", "canonical_id": "re-w06-x01", "bank": "re", "week": 6, "title": "Weighted adjusted comparable sales", "prompt": "Three comparable office sales indicate adjusted values of $290, $315, and $330 per rentable square foot for a subject building. The appraiser assigns weights of 20%, 50%, and 30%, respectively. The subject contains 48,000 rentable square feet. No further adjustment is needed. What indicated property value follows from the stated weighting? Round to the nearest $100.", "fingerprint": "c066b340688d9f23fa13bb975903dcd7a2c8ed3aaf0387563b04a7257a342b85", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x01", "locations": [] }, { "id": "re-w06-x02", "canonical_id": "re-w06-x02", "bank": "re", "week": 6, "title": "Comparable condition and location adjustments", "prompt": "A comparable building sold for $280 per square foot. Relative to the subject, it has a superior location worth $18 per square foot, an inferior physical condition requiring a $12 upward adjustment, and a superior lease profile worth $9 per square foot. All adjustments are additive dollar amounts applied to the comparable. The subject has 36,000 square feet. What subject value does this comparable indicate? Round to the nearest $100.", "fingerprint": "80e577ab3790144168a6191815145137d2e3023cb6fc16d500b5963466cd4a94", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x02", "locations": [] }, { "id": "re-w06-s026", "canonical_id": "re-w06-s026", "bank": "re", "week": 6, "title": "Practice", "prompt": "A renovated office comparable uses gross area for its price per square foot. The unrenovated subject uses rentable area. Market evidence supports a premium for the comparable's interiors and a decline in values since its sale. How should the analyst prepare the comparison?", "fingerprint": "717a8555176e35a1dd120423aca8d7342719e636f98c6213da7b0e797cc08ef5", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-s026", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 26, "answer_slides": [ 27 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-s029", "canonical_id": "re-w06-s029", "bank": "re", "week": 6, "title": "Comparable Sales and Equity Value", "prompt": "A buyer is considering the purchase of all ownership interests in a single-property LLC. The LLC owns a 40,000-square-foot warehouse. Three recent comparable sales have already been adjusted for location, condition, lease terms, and transaction date. Their adjusted prices are $210, $225, and $240 per square foot.\nFor this analysis, the buyer uses the median adjusted price per square foot. The LLC also holds $300,000 of unrestricted cash and owes $5,200,000 on its mortgage. It has no other assets or liabilities, and there are no transaction costs. The mortgage remains in the LLC after the ownership transfer.\nThe seller asks $4,500,000 for all of the LLC's equity. What is the indicated equity value, and how many dollars does the asking price exceed that value?", "fingerprint": "e8b99ecfafd31562e8d8fcb59093980c2ca2f49b910235cf62f7ed94dad14ad4", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s029", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 29, "answer_slides": [ 30 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x03", "canonical_id": "re-w06-x03", "bank": "re", "week": 6, "title": "Cost approach and accumulated depreciation", "prompt": "A site is worth $2,100,000. Replacing its building would cost $7,600,000 today, including all applicable indirect costs. Supported deductions are $850,000 for physical deterioration, $420,000 for functional obsolescence, and $310,000 for external obsolescence. These deductions are separate, do not overlap, and apply only to the building. What value does the cost approach indicate? Round to the nearest dollar.", "fingerprint": "d60d2c70e668835c130cc16d58efed2d9230f90c3cab4373b23cdfa671f8d288", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x03", "locations": [] }, { "id": "re-w06-s032", "canonical_id": "re-w06-s032", "bank": "re", "week": 6, "title": "Practice", "prompt": "A property has a leaking roof, an inefficient floor plan that tenants dislike, and lower market rents following the closure of a nearby employment center. Assume each causes a separate, supported loss in value. How should the three losses be classified, in that order?", "fingerprint": "3024c634bdc4c9e2725b530f33aba06955d34a36627d264738f53e4723792d41", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w06-s032", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-s035", "canonical_id": "re-w06-s035", "bank": "re", "week": 6, "title": "Practice", "prompt": "A new 200-unit apartment project has a $60 million all-in feasibility budget, including land, construction, financing, and required developer profit. Comparable stabilized 200-unit properties support values near $50 million. Assume consistent dates, quality, and property rights. What is the best interpretation?", "fingerprint": "c3b40fdf34f21d70e355dcc55d11ae4550b16c421b0a137a86a43a49a89968d9", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-s035", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 35, "answer_slides": [ 36 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x13", "canonical_id": "re-w06-x13", "bank": "re", "week": 6, "title": "Sensitivity to discount rate", "prompt": "An investor forecasts $300,000 of property cash flow at each of the next two year-ends and $4,900,000 of net sale proceeds with the second receipt. All cash-flow estimates remain unchanged. How much does present value decrease when the annual required return rises from 8.00% to 10.00%? Round to the nearest $100.", "fingerprint": "c3aaf442ae70fe63229270c0eb2a7ab20751d531cbcffa39eff6f0c1daaa6b54", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-x13", "locations": [] }, { "id": "re-w06-s038", "canonical_id": "re-w06-s038", "bank": "re", "week": 6, "title": "Practice", "prompt": "A property has annual NOI of $600,000 and a 5.00% cap rate, implying a $12,000,000 value. In a stress test, annual NOI falls to $570,000 and the cap rate rises to 6.00%. What is the stressed value?", "fingerprint": "0787f455d50a82ee59c3f3f0dd102b1f4fa28a8e6eb6f19f30712d57d4377746", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w06-s038", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 38, "answer_slides": [ 39 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x14", "canonical_id": "re-w06-x14", "bank": "re", "week": 6, "title": "Scenario-weighted investment NPV", "prompt": "A property acquisition requires $5,100,000 today. The present values of all future unlevered cash receipts are $4,400,000 in a downside scenario, $5,700,000 in a base scenario, and $6,600,000 in an upside scenario. The respective probabilities are 25%, 50%, and 25%. Each present value already reflects its full dated cash-flow forecast at the agreed discount rate. What is the probability-weighted NPV? Round to the nearest $100.", "fingerprint": "a22c27134f3b3af54f2b9899915a978510f8b2d4aa0f97a47d9c67ceccc49788", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x14", "locations": [] }, { "id": "re-w06-s041", "canonical_id": "re-w06-s041", "bank": "re", "week": 6, "title": "Practice", "prompt": "An analyst holds vacancy and the cap rate constant to isolate the effect of a 5% rent decline. Separately, the committee requests a broad downturn with weaker leasing and higher market cap rates. How should the analyst use these analyses?", "fingerprint": "1d093706955b8a62f357c27d1ce27ef1d4184ed332f24a8912349b4f34fcd0ca", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-s041", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 41, "answer_slides": [ 42 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x05", "canonical_id": "re-w06-x05", "bank": "re", "week": 6, "title": "Explicit reconciliation weights", "prompt": "An analyst obtains property values of $10,400,000 from adjusted sales, $9,700,000 from DCF, and $11,200,000 from the cost approach. For this exercise, the committee explicitly assigns weights of 45%, 45%, and 10%, respectively, after reviewing the evidence. What reconciled value follows from that rule? These weights are a case assumption, not a universal appraisal rule. Round to the nearest $100.", "fingerprint": "59b8463b6c81e0a903495fbe37c6a98b550f21b0f9487ff7de6897a181326aeb", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x05", "locations": [] }, { "id": "re-w06-s044", "canonical_id": "re-w06-s044", "bank": "re", "week": 6, "title": "Practice", "prompt": "For an older apartment property, income analysis and recent comparable sales both indicate about $30 million. The income cap rate comes from those same sales. A $36 million cost estimate omits functional and external obsolescence. What is the best next step?", "fingerprint": "80de9413102c9c9a9fbb7fda403b35e3b0e6728cd6475648a5f32905e1e10680", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s044", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 44, "answer_slides": [ 45 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-s046", "canonical_id": "re-w06-s046", "bank": "re", "week": 6, "title": "Valuation Reconciliation", "prompt": "An appraiser is reviewing a fully leased neighborhood retail property. Three recent sales, adjusted for location, leases, and building condition, indicate $4.1 million to $4.4 million. An income-based estimate using the property's current leases and a supported market capitalization rate is $4.25 million.\nA cost estimate based on current construction prices, less physical depreciation and plus land value, indicates $5.7 million. It has not been adjusted for the effect of local market conditions. Current rents would not support construction of an equivalent new building. The subject's recent renovations were already reflected in the condition adjustments to the sales. There is no expansion right or other feature omitted from those adjustments.\nWhich proposed value conclusion is best supported by this evidence?", "fingerprint": "07c6a67fc644ae02e07fdf3c99744f9f99b574c8241bb38ff0cd6a1e107b9e0b", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s046", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 46, "answer_slides": [ 47 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-s048", "canonical_id": "re-w06-s048", "bank": "re", "week": 6, "title": "Practice", "prompt": "An acquisition analyst's DCF values an office property at $42 million. It assumes occupancy rises from 65% to 95% within two years and new leases achieve rents 15% above recent comparable leases. The model includes no tenant-improvement allowances or leasing commissions for that leasing program.\nSales of nearby buildings with similar age and physical quality indicate $30–34 million. Those buildings have more stable occupancy and longer remaining lease terms. Recent signed leases at the subject support improving occupancy, but their rents do not establish the forecast 15% premium.\nWhich next step would best support a defensible acquisition valuation?", "fingerprint": "585e5230527bb78bf82a82646ba3dce5a68f413466645fd4fcf19f709cd6bff2", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s048", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 48, "answer_slides": [ 49 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x04", "canonical_id": "re-w06-x04", "bank": "re", "week": 6, "title": "Comparable transaction to equity purchase price", "prompt": "Comparable sales support $22,500,000 for the properties owned by a single-purpose company. The company has $720,000 in transferable unrestricted cash, $12,800,000 of debt to be assumed by the buyer, and $430,000 of other liabilities. The buyer acquires all common equity and assumes these obligations; there are no additional assets or transaction costs. What equity price is consistent with the stated property value? Round to the nearest dollar.", "fingerprint": "cfeafac676aecf6fa5619ac546e84edd0524b9e1034752f2bfdf5933ff64cf3c", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x04", "locations": [] }, { "id": "re-w06-s051", "canonical_id": "re-w06-s051", "bank": "re", "week": 6, "title": "Practice", "prompt": "An investor is considering buying all the equity in an LLC that owns a 100,000-square-foot office property. The property DCF uses a 12.00% unlevered required return and cash flows after operating, capital, and leasing expenditures of $3.50 million, $4.00 million, and $4.50 million in Years 1–3. Net property sale proceeds at the end of Year 3 are $45.00 million, after selling costs but before loan repayment, in addition to Year 3 operating cash flow.\nThree comparable property sales indicate adjusted prices of $300, $325, and $350 per square foot. Use the median price and the subject's 100,000 square feet. All necessary adjustments for property and lease differences have already been made. These prices value the real estate before debt and exclude excess cash.\nThe LLC has $8.00 million of debt at market value and $2.00 million of excess cash outside the property forecast. The seller asks $29.00 million for all LLC equity. There are no other claims, assets, taxes, or acquisition costs.\nWhich pair gives (1) the LLC equity value supported by the DCF and (2) the asking equity price's percentage premium or discount to the equity value supported by comparable sales? Round DCF equity value to the nearest $10,000 and the percentage to two decimals. A positive percentage means a premium; use comparable equity value as the percentage denominator.", "fingerprint": "aab0bd822a6f41d717f6430f1b9be769301a0c25a11f739d1a78e295e0c8f4e6", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s051", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 51, "answer_slides": [ 52 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x10", "canonical_id": "re-w06-x10", "bank": "re", "week": 6, "title": "Valuation decline and available mortgage proceeds", "prompt": "A property originally appraised at $9,000,000 is now appraised at $8,200,000. Underwritten NOI is $560,000. A lender’s maximum LTV is 65.00%, minimum DSCR is 1.25x, and annual mortgage constant is 7.50%. There is no debt-yield test. What maximum loan satisfies both the current value and cash-flow limits? Round to the nearest $100.", "fingerprint": "5a92d5c57cfa44aa7308958fedb2e247e759b03e8deb609de97512227088600b", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-x10", "locations": [] }, { "id": "re-w06-s054", "canonical_id": "re-w06-s054", "bank": "re", "week": 6, "title": "Practice", "prompt": "A property's supported market-value estimate is unchanged. A proposed loan has higher annual debt service than the lender originally modeled, while underwritten NOI and loan amount remain unchanged. Which pair of changes follows?", "fingerprint": "360c96db924ee177433904139d1f5fe94906c98a810b25e043a51fb3da65991d", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-s054", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 54, "answer_slides": [ 55 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x06", "canonical_id": "re-w06-x06", "bank": "re", "week": 6, "title": "Acquisition price with a liquidity reserve", "prompt": "An unlevered buyer has $6,200,000 available today. Its investment value for a property is $6,050,000 before acquisition costs. Closing costs are 2.00% of price, and immediate nonrecoverable repairs cost $160,000. The buyer must also retain $250,000 of its cash outside the transaction. Both a nonnegative NPV and the liquidity requirement must be met. What is the highest permissible property price? Round to the nearest $100.", "fingerprint": "0c4853bdbc66be5ed50f6f48042fb10ee77004310a72930f440dd5ac75467066", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-x06", "locations": [] }, { "id": "re-w06-s057", "canonical_id": "re-w06-s057", "bank": "re", "week": 6, "title": "Practice", "prompt": "A fund's analyst discounts future property cash flows at its 7.5% unlevered required return and obtains a present value of $29,489,486. The asking price is $30,000,000. Additional closing and due-diligence costs of $300,000 are paid upfront and are not included in that PV. What are NPV at the asking price and the maximum purchase price for zero NPV? Assume the other inputs remain unchanged.", "fingerprint": "8e8bcc58465f917c633f94a453c51682a63af1b83c1d404565ea532a5a13c37c", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-s057", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 57, "answer_slides": [ 58 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x15", "canonical_id": "re-w06-x15", "bank": "re", "week": 6, "title": "Conservative bid constrained by two indications", "prompt": "A committee’s explicit policy caps the total acquisition outlay at the lower of supported comparable value and investor DCF value. The comparable indication is $8,900,000 and DCF value is $9,350,000. Closing costs are 1.50% of the property price and immediate repairs cost $220,000, both outside the valuations. What maximum property price complies with that policy? Round to the nearest $100.", "fingerprint": "eb19bc9785f6020c92df1a54c7660bb514e133df75e68d5415e968cdc2145a9f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x15", "locations": [] }, { "id": "re-w06-s060", "canonical_id": "re-w06-s060", "bank": "re", "week": 6, "title": "Practice", "prompt": "An investor is considering a three-year purchase and sale of an office building. The forecast is:\nThe property will be sold at the end of Year 3. The buyer at that date is expected to pay a price based on Year 4 NOI of $630,000 and a 7.00% exit cap rate. Selling costs are 2.50% of the gross sale price.\nAt acquisition, the investor must also pay closing costs equal to 2.00% of the purchase price and $180,000 for immediate improvements. Those improvements are separate from the annual expenditures above. The required unlevered annual return is 10.00%. There is no debt and no other cash flow.\nWhat is the maximum purchase price today that produces zero NPV, rounded to the nearest $1,000?", "fingerprint": "cee2a8d1face03f8f4e38765a300b1c5c6ac93a3f0818f6201b47c388ac93cef", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s060", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 60, "answer_slides": [ 61 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x08", "canonical_id": "re-w06-x08", "bank": "re", "week": 6, "title": "Hold-versus-sell opportunity cost", "prompt": "An owner can sell a building today for $4,800,000 net of all sale costs. Holding requires $150,000 of immediate capital work, then produces $360,000 at Year 1 and $390,000 at Year 2. A Year 2 sale would produce $5,250,000 net of costs. There is no debt or tax. Historical acquisition cost was $3,200,000. At a 9.00% required annual return, what is the incremental NPV of holding instead of selling today? Round to the nearest $100.", "fingerprint": "41cf82be4460c13d9c3711febb049c54176246cb44a0fd6b0ee51dc6c325edd9", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-x08", "locations": [] }, { "id": "re-w06-s063", "canonical_id": "re-w06-s063", "bank": "re", "week": 6, "title": "Hold or Sell", "prompt": "A partnership purchased an apartment property for $7 million several years ago and later spent $600,000 on renovations. It now receives a firm purchase offer. After selling costs and repayment of the mortgage, the offer would provide $3 million of cash to the partnership.\nThe manager recommends rejecting the offer because the sale would not recover every historical dollar spent. The partnership can invest the net sale cash in another property or retain the existing asset. The prior renovation spending cannot be recovered separately, and taxes can be ignored. No contractual restriction prevents a sale.\nWhich decision framework is most appropriate?", "fingerprint": "1191e9ddcb8bdf47953d0f92fea30d96b450d3f4a22926a2b1c2021feaa61e4e", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-s063", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 63, "answer_slides": [ 64 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x09", "canonical_id": "re-w06-x09", "bank": "re", "week": 6, "title": "Gross sale offer required for a target net receipt", "prompt": "An owner wants $2,850,000 of cash after selling a property and repaying debt. The mortgage payoff is $5,400,000. Selling costs are 3.00% of gross price plus a fixed $65,000 legal charge. There are no taxes or other sale adjustments. What minimum gross sale price produces the target net cash? Round to the nearest $100.", "fingerprint": "c43a00ae20dc4cebfba4ca4fe19601994508baf840d17e51fa22d23cd2ee2a96", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x09", "locations": [] }, { "id": "re-w06-s066", "canonical_id": "re-w06-s066", "bank": "re", "week": 6, "title": "Practice", "prompt": "The owner of an apartment building can sell today and receive $2,450,000 after selling costs, taxes, and loan repayment. Instead, the owner could spend $200,000 today on improvements and hold the property for three more years.\nThe hold alternative is expected to distribute $180,000, $205,000, and $230,000 to equity at the ends of Years 1, 2, and 3. An additional $2,950,000 would be received from the sale at the end of Year 3. All of these future amounts are already net of taxes, debt payments, and selling costs. The original equity investment was $1,800,000.\nThe owner's required annual equity return is 12.00%. There are no other cash flows. What is the incremental NPV of improving and holding rather than selling today, rounded to the nearest $1,000?", "fingerprint": "33c65cad1fdbe8ca9f7d36f17e1b81e5abd54aee8fd354dbc9ef108b280cce98", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s066", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 66, "answer_slides": [ 67 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-s068", "canonical_id": "re-w06-s068", "bank": "re", "week": 6, "title": "Practice", "prompt": "A 100-unit property produces year-end operating cash flows of $300,000 in Year 1 and $330,000 in Year 2, after capital spending. Net sale proceeds at the end of Year 2 are $3,300,000, after selling costs. Use the buyer's 10% annual unlevered required return. There is no debt.\nThe asking price is $3,000,000, with $100,000 of additional upfront acquisition costs. Adjusted comparables indicate $32,000 per unit.\nWhich combination gives NPV after acquisition costs and the asking price's percentage gap from the comparable value? Round NPV to the nearest $1,000 and use comparable value as the percentage denominator.", "fingerprint": "9461396b68e616de19c818c44dfaa0497d52cbd1f5f247080cab866e16810f8f", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s068", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 68, "answer_slides": [ 69 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x07", "canonical_id": "re-w06-x07", "bank": "re", "week": 6, "title": "Incremental NPV of a larger acquisition", "prompt": "Two mutually exclusive all-cash acquisitions have identical risk. Property A requires $3,800,000 today and pays $320,000 at Year 1 and $4,500,000 at Year 2, including sale proceeds. Property B requires $4,400,000 and pays $380,000 and $5,200,000 on the same dates. At a 10.00% annual required return, what is the incremental NPV of choosing B instead of A? Round to the nearest $100.", "fingerprint": "f10fe413d840d069f88d54d5dc18321f013c5ff34048edb1aa385e37d970eb5a", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-x07", "locations": [] }, { "id": "re-w06-x16", "canonical_id": "re-w06-x16", "bank": "re", "week": 6, "title": "Higher multiple versus faster realization", "prompt": "Two properties require the same all-cash investment and make no interim distributions. Property A returns 1.45 times invested capital after three years. Property B returns 1.65 times invested capital after five years. What is Property A’s annual IRR advantage over Property B, expressed in percentage points? Round to two decimal places.", "fingerprint": "4861bd22e56819a9c179259c1c201643e472109bb961549f370c284439518364", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x16", "locations": [] }, { "id": "re-w06-s071", "canonical_id": "re-w06-s071", "bank": "re", "week": 6, "title": "Practice", "prompt": "An investor must choose one of two mutually exclusive property investments. Both have comparable risk, require their entire outlay today, and make one distribution at the end of one year:\nThe investor has sufficient capital for either alternative, requires 10% annually, and faces no other cash flows or restrictions. Which choice creates more value above the required return?", "fingerprint": "eeffdbe0944dc79db917ce761b5e6330793894ff06a798c76c9106160c9614fa", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w06-s071", "locations": [ { "deck_id": "1TKGcZSCdmP5noh3Vk6CVoV66nMQ8ivW2", "deck_name": "Week 6 - FNCE 118 & FNCE 128 - Valuation Triangulation and Investment Decisions - Shared Master.pptx", "question_slide": 71, "answer_slides": [ 72 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w06-x12", "canonical_id": "re-w06-x12", "bank": "re", "week": 6, "title": "DCF audit: duplicated terminal proceeds", "prompt": "A three-year property DCF correctly includes $5,600,000 of net sale proceeds in Year 3 cash flow. A spreadsheet then mistakenly adds the present value of the same $5,600,000 sale proceeds a second time. The annual discount rate is 12.00%; all other entries are correct. By how much is today’s estimated value overstated? Round to the nearest $100.", "fingerprint": "780a8cbd7f5759d874fc8c588069a65c739b1d78b16d0ac7136f1696287d7d94", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w06-x12", "locations": [] }, { "id": "re-w07-s005", "canonical_id": "re-w07-s005", "bank": "re", "week": 7, "title": "Practice", "prompt": "An office property's rent roll shows 95% leased occupancy. A tenant responsible for 30% of scheduled rent has stopped paying, and its lease expires in three months. The sponsor forecasts full collections and immediate renewal at a higher rent, but no renewal is signed. Which approach best supports underwritten income?", "fingerprint": "96071732e5f670234e6447b619f69538b69b15f2a09494a7ad17ec0d64a70b7d", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s005", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 5, "answer_slides": [ 6 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s009", "canonical_id": "re-w07-s009", "bank": "re", "week": 7, "title": "Practice", "prompt": "Two five-year loans have the same original principal, fixed interest rate, fees, and collateral. Loan A is interest-only for all five years. Loan B makes monthly payments based on 30-year amortization. Assume all payments occur as scheduled and neither loan is prepaid. Which comparison is correct?", "fingerprint": "8401ab0eb0f6d2b928e0d571d6d3cdc24405706c6388700e247fcab815e4a00d", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s009", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 9, "answer_slides": [ 10 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s012", "canonical_id": "re-w07-s012", "bank": "re", "week": 7, "title": "Practice", "prompt": "A $10,000,000 loan has a 6.00% nominal annual interest rate with monthly compounding, monthly payments at month-end, and 30-year amortization. Ignore fees. What is its annual mortgage constant, rounded to two decimal places?", "fingerprint": "a4141e1eb597ca9520e99dd0f73bc21980d9611d20a24ba1401e4dbaaf4828ff", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s012", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 12, "answer_slides": [ 13 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s015", "canonical_id": "re-w07-s015", "bank": "re", "week": 7, "title": "Practice", "prompt": "Two properties have unchanged NOI and loan balances. Both loans are interest-only. Loan F is fixed for its remaining term. Loan V is unhedged and resets at SOFR plus a fixed spread. SOFR rises at V's next reset, with no floor or cap limiting the increase. No other terms change. What happens to current DSCR and debt yield?", "fingerprint": "201a29540700638b45974379a02c5f639ae2850c2393eca023921cb19a1a317d", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s015", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 15, "answer_slides": [ 16 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s018", "canonical_id": "re-w07-s018", "bank": "re", "week": 7, "title": "Practice", "prompt": "Reported annual NOI is $1,400,000. It includes $100,000 of one-time lease-termination income and omits $80,000 of recurring management expense. The lender also deducts $20,000 of annual replacement reserves in its DSCR numerator. None of these adjustments has been made. Proposed annual debt service is $1,000,000. What DSCR should the lender use, and does it meet a 1.25x minimum?", "fingerprint": "f34f0abda0e2413817fdc67c9276164e3daf4ff77f8b6b095c9720ec6f1051bd", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s018", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 18, "answer_slides": [ 19 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s020", "canonical_id": "re-w07-s020", "bank": "re", "week": 7, "title": "Debt Coverage and Equity Cash", "prompt": "A lender reviews a property's annual results:\nEffective gross income: $750,000.\nProperty operating expenses: $300,000.\nScheduled mortgage debt service: $360,000, including $90,000 of principal repayment.\nBuilding capital expenditures: $60,000.\nThe loan requires a minimum debt-service coverage ratio of 1.20×. For this covenant, the lender measures coverage using NOI before capital expenditures and includes both interest and principal in debt service. The building capital expenditures are paid in cash during the year, below NOI. There are no other cash uses or required reserves.\nWhat are the property's covenant DSCR and the cash remaining for equity after debt service and capital expenditures, respectively?", "fingerprint": "46172d36de4643200265083f4102b5f1b987be07cc12bbf7c5f79c76c57a7a71", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s020", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 20, "answer_slides": [ 21 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-x02", "canonical_id": "re-w07-x02", "bank": "re", "week": 7, "title": "Binding debt-yield constraint", "prompt": "An apartment property is valued at $11,000,000 and has underwritten NOI of $650,000. A lender applies a 65.00% maximum LTV, 1.30x minimum DSCR, a 7.25% annual mortgage constant, and 10.00% minimum debt yield. All three constraints apply to the same initial loan. What maximum loan is permitted? Round to the nearest $100.", "fingerprint": "2ebb7af1c946f1a4a4125787295994168d46e59282430ea244180fb4fc18575a", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-x02", "locations": [] }, { "id": "re-w07-s023", "canonical_id": "re-w07-s023", "bank": "re", "week": 7, "title": "Practice", "prompt": "A lender underwrites annual NOI of $1,200,000 and value of $20,000,000. Its maximum LTV is 75%, minimum DSCR is 1.25x, and minimum debt yield is 9.00%. Use an annual mortgage constant of exactly 8.00%. Based only on these three tests, what is the maximum loan, rounded to the nearest $1,000?", "fingerprint": "145e66db324d424b391597ebc9ec915e39d9774501813f9d518c445ef53e5414", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s023", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 23, "answer_slides": [ 24 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s025", "canonical_id": "re-w07-s025", "bank": "re", "week": 7, "title": "Practice", "prompt": "A lender requires every acquisition loan to pass both its minimum DSCR and maximum LTV tests. The proposed mortgage passes DSCR using verified NOI but exceeds the LTV limit under the required appraisal. The lender permits no exception.\nThe sponsor has enough additional cash to reduce the mortgage while keeping all required operating reserves funded. The interest rate and amortization terms would remain unchanged.\nWhich response follows the lender's policy?", "fingerprint": "ca1d9fd51900955a1904d434f8ad949a3124925602214612a0cfb2fecf18c506", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s025", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 25, "answer_slides": [ 26 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s029", "canonical_id": "re-w07-s029", "bank": "re", "week": 7, "title": "Practice", "prompt": "A property meets all required loan ratios. After closing, the sponsor would have $12M of net worth, mostly illiquid, and $100,000 of unrestricted cash. A separately funded $200,000 roof reserve is restricted to repairs. The lender requires $300,000 of unrestricted cash after closing. A repayment guarantee is signed. All other conditions are met, and no waiver is allowed. Which recommendation meets the terms?", "fingerprint": "58dd0da3a8bd9b1ffd5cdfe8adfeb9826d1002881b419a7d0a1151a756fb80d0", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s029", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 29, "answer_slides": [ 30 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s031", "canonical_id": "re-w07-s031", "bank": "re", "week": 7, "title": "Repayment Through Lease Rollover", "prompt": "A lender is considering a mortgage on a multi-tenant office property. The proposed loan is modest relative to the appraised property value. However, the tenant responsible for 40% of rental income has announced that it will leave at the end of its lease next year. Re-leasing the space will require tenant improvements and leasing commissions.\nThe borrower argues that the loan is safe because the property's appraised value substantially exceeds the proposed loan balance. The appraisal assumes successful replacement of the departing tenant, and no replacement lease has been signed.\nWhat should receive the most attention before the lender approves the loan?", "fingerprint": "c9062ed399fc46007741489e29345eaf0d259ccab3b7de9064c7a6588a9a24d9", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s031", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 31, "answer_slides": [ 32 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-x01", "canonical_id": "re-w07-x01", "bank": "re", "week": 7, "title": "Committed debt versus spendable closing proceeds", "prompt": "A lender commits to a $7,200,000 acquisition loan. It withholds a $480,000 future-improvement holdback, a $210,000 interest reserve, and an origination fee of 1.00% of the full commitment. The buyer’s closing uses, excluding these lender-withheld amounts, total $10,650,000. Holdbacks cannot be spent at closing. How much cash equity must the buyer provide at closing? Round to the nearest $100.", "fingerprint": "ebb8e69d08f5d690f0fb5ddff1931dd96d7d345eafebfad743253395975e88f9", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-x01", "locations": [] }, { "id": "re-w07-s034", "canonical_id": "re-w07-s034", "bank": "re", "week": 7, "title": "Committed Funding and Cash Timing", "prompt": "An investment committee has approved the price and conservative operating forecast for a retail acquisition. A major tenant's lease expires shortly after closing, and no renewal is signed. Two acquisition plans fit within the committee's approved equity budget and satisfy its return requirement.\nThe committee has one remaining funding condition: at closing, the buyer must have cash set aside for both the lender's minimum reserve and the forecast leasing costs if the tenant leaves. Unused leasing cash can be distributed after the renewal or replacement lease resolves the need.\nPlan A funds the lender reserve and projects larger early distributions. It relies on a binding LP commitment for leasing costs, but the LP is not required to pay until three months after those costs would be due. No bridge funding is available. Plan B funds both cash accounts at closing and therefore projects smaller early distributions.\nWhich approval meets the committee's funding condition on the facts available today?", "fingerprint": "f28a73fc5fd1bf284925244cfc805a402e4a2fec91ce4409bd683e78f9735e80", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s034", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 34, "answer_slides": [ 35 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s036", "canonical_id": "re-w07-s036", "bank": "re", "week": 7, "title": "Practice", "prompt": "An investment committee requires $180,000 of leasing cash to be protected from investor withdrawal and available before invoices become due. The policy permits either a property reserve or an independent escrow. Both plans below separately fund the lender's minimum reserve.\nPlan A deposits the full leasing amount in escrow today. Release to the property is mandatory five business days before the first invoice, with no further investor approval or funding condition. Plan B deposits the same amount in a restricted property account today. Both fit the approved investment budget.\nWhich conclusion follows the stated policy?", "fingerprint": "cda3f92d222f82a1850c8d3e3aaf56874909e7a22cd3fff6c05e86ec3a858b69", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s036", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 36, "answer_slides": [ 37 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s039", "canonical_id": "re-w07-s039", "bank": "re", "week": 7, "title": "Practice", "prompt": "A property is 60% occupied. Renovation finishes at month 12, and 90% occupancy is forecast at month 24. Three quotes offer:\nLife-company loan: available after renovation and 90% occupancy.\nBank renovation loan: funds now, 36-month term.\nBridge loan: funds now, 18-month term, no committed extension.\nAssume all other conditions are met. Which plan best matches the property's stage and timing?", "fingerprint": "1b6ad7221b1d5b7f2827bb6bf1335bc71d30b4072178adecba5bd89bfaeb5040", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s039", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 39, "answer_slides": [ 40 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s041", "canonical_id": "re-w07-s041", "bank": "re", "week": 7, "title": "Financing and Exit Flexibility", "prompt": "A buyer expects to renovate a warehouse, sign new leases, and sell it within two years. Two lenders offer loans with the same principal amount and acceptable debt coverage at closing.\nLoan A has a lower stated interest rate, a larger upfront fee, and a prepayment charge if the property is sold during the planned holding period. Loan B has a slightly higher rate, a smaller upfront fee, and no prepayment charge. Both loans mature after the expected sale, and neither lender requires the buyer to use its loan.\nThe buyer has not yet compared the dollar fees or the prepayment terms under an early or delayed sale. What is the most appropriate next step?", "fingerprint": "440d7c8359fac8eac14d34270abd2295b21ce379aac99fff47dec34a2f6f99c8", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s041", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 41, "answer_slides": [ 42 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s044", "canonical_id": "re-w07-s044", "bank": "re", "week": 7, "title": "Practice", "prompt": "At maturity, a borrower must repay $18,000,000. The new lender's maximum loans are $17,500,000 under LTV, $16,500,000 under DSCR, and $17,000,000 under debt yield. Closing costs are $300,000 and a required reserve deposit is $200,000. With no other cash available, how much new equity is needed to complete the refinance?", "fingerprint": "1d1dbc58e84f17077b13b1694006191d252877f9b17e4da8d0b7cb263190206c", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s044", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 44, "answer_slides": [ 45 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s046", "canonical_id": "re-w07-s046", "bank": "re", "week": 7, "title": "Refinancing Cash Requirement", "prompt": "A property's existing mortgage matures next month. The lender requires $5,800,000 to pay it off. A replacement lender has approved a new mortgage with a face amount of $5,400,000 and will withhold a 2% origination fee from those proceeds.\nAt the refinancing closing, the partnership must also pay $50,000 of legal and other closing costs and deposit $100,000 into a new required reserve account. Neither amount is included in the lender's origination fee. The partnership has $150,000 of unrestricted cash that can be applied to the closing, and no other funding is available. The property was recently appraised at $9,000,000.\nWhat additional equity contribution is needed to complete the refinancing?", "fingerprint": "f881ee6b7585e9a2422f6e650aecdd4ec2f7f550e3479c17d5f2734a1dbf813b", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s046", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 46, "answer_slides": [ 47 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-x03", "canonical_id": "re-w07-x03", "bank": "re", "week": 7, "title": "Refinance shortfall after origination costs", "prompt": "A mortgage balance of $6,300,000 matures today. The refinance appraisal is $8,900,000, underwritten NOI is $610,000, maximum LTV is 65.00%, minimum DSCR is 1.25x, and the annual mortgage constant is 8.00%. A new loan costs 1.00% of its gross amount, withheld at funding, plus $40,000 of cash legal costs. There is no debt-yield constraint or available reserve. What additional equity is required to repay the old loan and close the refinance? Round to the nearest $100.", "fingerprint": "3672bfa70e40f7ff5736d21c9f5a25c2bdde8029f6f569a32d3c3ef442dd63b8", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-x03", "locations": [] }, { "id": "re-w07-s049", "canonical_id": "re-w07-s049", "bank": "re", "week": 7, "title": "Practice", "prompt": "A property's construction loan matures when its stabilized annual NOI is expected to be $760,000. The refinancing lender values the property using an 8.00% cap rate and applies all three limits:\nMaximum LTV: 60.00%.\nMinimum DSCR: 1.30x.\nMinimum debt yield: 11.50%.\nAnnual principal and interest payments on the new loan equal 9.00% of its initial face amount. A 2.00% origination fee is withheld from the new loan proceeds. The construction loan payoff is $6,900,000, and there is no available cash reserve or other funding source.\nWhat additional equity contribution is required at refinancing, assuming the lender advances the largest loan satisfying all three limits? Round to the nearest $1,000.", "fingerprint": "c8b284e3adaa3c7cf651b62ae519bde1bcc73f5c4c2493016429c8c550849f29", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s049", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 49, "answer_slides": [ 50 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-x04", "canonical_id": "re-w07-x04", "bank": "re", "week": 7, "title": "Break-even occupancy with variable expenses", "prompt": "A property would collect $1,500,000 of annual rent at 100% economic occupancy. Other income is fixed at $60,000. Fixed operating expenses are $410,000, and variable operating expenses equal 12.00% of collected rent, excluding other income. Annual debt service is $540,000. With no capital costs or reserves, what economic occupancy is needed for NOI to equal debt service? Round to two decimal places.", "fingerprint": "ca94c04b9c7e539c12a676bb033f76bac2c555aa5746a21865cd643ee431753b", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Cash flow modeling", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-x04", "locations": [] }, { "id": "re-w07-s052", "canonical_id": "re-w07-s052", "bank": "re", "week": 7, "title": "Practice", "prompt": "A property's annual gross potential rent is $2,000,000. Annual operating expenses are $600,000, debt service is $1,000,000, and other income is $100,000. Assume expenses and other income remain constant, with no capital spending or other cash obligations. What percentage of gross potential rent must be collected to cover operating expenses and debt service?", "fingerprint": "7c91c7299cdb18f6499cfdc8565401a3f5a0c662fb87d9b1f1680c45cc275f3a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s052", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 52, "answer_slides": [ 53 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s056", "canonical_id": "re-w07-s056", "bank": "re", "week": 7, "title": "Practice", "prompt": "A development has a total budgeted cost of $20,000,000 and forecast stabilized annual NOI of $1,400,000. Comparable stabilized properties trade at a 6.00% cap rate. Assume the budget includes all development and financing costs. Ignore selling costs and taxes. What are the development spread and the indicated stabilized value above cost, rounded to the nearest $1,000?", "fingerprint": "e143c31ad550e467fcbf22e59d430fd78ecb043ad2a49d01ed2a787576565153", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Applied valuation", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s056", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 56, "answer_slides": [ 57 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s059", "canonical_id": "re-w07-s059", "bank": "re", "week": 7, "title": "Construction Draws", "prompt": "A construction lender has a $4,000,000 total loan commitment. Before the next draw, $1,600,000 has been funded and remains outstanding.\nThe developer must now pay a $900,000 contractor invoice. The invoice includes $120,000 of owner-requested upgrades that are outside the lender's approved budget. The remaining invoice costs are eligible for funding. The lender will advance 75% of eligible costs and none of the upgrade costs. Every part of the invoice must be paid now.\nA separate $44,000 interest bill is also due and cannot be funded by this loan. The project has $75,000 of existing unrestricted cash available for the invoice and interest bill. There are no other cash sources or payments, and no principal is repaid at this draw.\nAfter this draw, what loan commitment remains undrawn, and how much additional cash must the sponsor provide?", "fingerprint": "6934a9b3e91beb2c2430d49b40099eb2e6fed1e680cddb9248a40d46f757a3a4", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Cash flow modeling", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s059", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 59, "answer_slides": [ 60 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-x06", "canonical_id": "re-w07-x06", "bank": "re", "week": 7, "title": "Delay cost and liquidity buffer", "prompt": "A development schedule slips by four months. Each month of delay requires $47,000 of loan interest and $19,000 of site carrying costs. An additional $85,000 contractor remobilization charge is due once. These costs are incremental and do not overlap. An unused contingency provides $140,000; it is the only available funding. What additional equity must be raised to cover the delay? Round to the nearest dollar.", "fingerprint": "ef0f9f2414445f124da87dcf91d7037bbe4241a5de318690991e2f365788d52d", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-x06", "locations": [] }, { "id": "re-w07-s062", "canonical_id": "re-w07-s062", "bank": "re", "week": 7, "title": "Practice", "prompt": "Revised interest carry is $900,000, and $600,000 remains in the interest reserve. An undrawn $500,000 commitment is restricted to hard costs. The borrower has requested permission to move $200,000 from that commitment to interest. The lender has not approved the change. A completion guarantee is in place, but no guarantor cash has been provided. Assume no other funding. What is the interest-funding gap now, and after approval makes the requested $200,000 available?", "fingerprint": "eb9717f577c61c146f07eeca376e269cf5671fc673318f56c48d0f35fbf8217c", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s062", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 62, "answer_slides": [ 63 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s064", "canonical_id": "re-w07-s064", "bank": "re", "week": 7, "title": "Construction Loan Maturity", "prompt": "A developer revises the completion plan for an industrial project after learning that a utility connection will be delayed. An independent reviewer confirms that the revised construction budget includes the cost overrun and added interest through the new completion date. Existing eligible loan funds and equity already deposited in escrow are sufficient to pay that budget.\nThe construction loan nevertheless matures six weeks before the revised completion date. The permanent lender will fund only after the utility connection is complete and the building receives its occupancy certificate. No sale, loan-payoff funds, or alternative refinancing is available before that date. The construction lender's email says it expects to consider an extension, subject to approval; the existing loan has no automatic extension right.\nWhich additional item is necessary to finance the revised plan through completion?", "fingerprint": "cfd8a28cc49eb473514d926102a4b0641f8d79c8da1d02be65f06ee8c842c6e2", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s064", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 64, "answer_slides": [ 65 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-x05", "canonical_id": "re-w07-x05", "bank": "re", "week": 7, "title": "Construction interest on staged draws", "prompt": "A construction loan begins with zero outstanding principal. The developer draws $1,200,000 on January 1, $900,000 on April 1, and $1,500,000 on October 1. Interest is 9.00% annually, calculated using simple monthly fractions of a year. Interest is paid from equity and is not capitalized. There are no repayments during the calendar year. What total interest is paid for that year? Round to the nearest dollar.", "fingerprint": "97391ef3aea8d76a1169b8e18184665b5208e4c0b691bda26672d4703e016132", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-x05", "locations": [] }, { "id": "re-w07-s067", "canonical_id": "re-w07-s067", "bank": "re", "week": 7, "title": "Practice", "prompt": "A construction loan has a $7,000,000 commitment and a $3,000,000 drawn balance at the start of a quarter. The lender funds 70% of each eligible construction invoice, and the sponsor funds the remaining 30%.\nA $1,200,000 eligible invoice is paid on the first day of the quarter, and the related loan draw occurs that day. No other draws or principal repayments occur during the quarter.\nInterest is 8% per year, calculated as the constant outstanding balance × 8% × 1/4. Interest is paid by the sponsor at quarter-end and is outside the construction invoice. No interest reserve or fees apply. How much new sponsor cash is needed for the invoice and that quarter's interest?", "fingerprint": "5f363ed5af36d77dcc08aaf06c9b6957f4c048b3175aea123c0f488e533c2bb0", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s067", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 67, "answer_slides": [ 68 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s070", "canonical_id": "re-w07-s070", "bank": "re", "week": 7, "title": "Practice", "prompt": "Setup for this question: Assume the local legal change is unrelated to broad market returns and can be diversified across other jurisdictions.\nA retailer owns 40 stores. A new statute in one state forces renegotiation at three stores on worse terms. Management worries this loss will drag down the entire portfolio.", "fingerprint": "e008c5441c741061579e89f33bdbad28c92712d3bff66e8ed090ca3e6602d173", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s070", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 70, "answer_slides": [ 71 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s073", "canonical_id": "re-w07-s073", "bank": "re", "week": 7, "title": "Practice", "prompt": "An investment committee evaluates an asset with a beta of 1.5. The risk-free rate is 3%, and the market risk premium is 6%. Using CAPM, what return should be required?", "fingerprint": "587a1d240e64810e9836234923e28b1aad69446a611e729ab9fbb8f078095c21", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "re-w07-s073", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s076", "canonical_id": "re-w07-s076", "bank": "re", "week": 7, "title": "Practice", "prompt": "An analyst forecasts property cash flow after capital spending but before debt service. The analyst selects a levered REIT equity hurdle and adds a vacancy premium after reducing forecast occupancy. Which review is most appropriate?", "fingerprint": "5ebb8b68b59c06d47470acaa1f09b195c650fada6839bb40d798a88b1c9a9d23", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s076", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 76, "answer_slides": [ 77 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s079", "canonical_id": "re-w07-s079", "bank": "re", "week": 7, "title": "Practice", "prompt": "In a no-tax teaching example, debt and equity represent 60% and 40% of total market value. The marginal annual cost of debt is 6.00%, the loan's annual mortgage constant is 7.20%, and the required annual equity return is 12.00%. What is the weighted required return using the costs of debt and equity?", "fingerprint": "c2205098c0d91f046ebf07857db17aa27577fee82e9fc856859343792744a114", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s079", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 79, "answer_slides": [ 80 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s081", "canonical_id": "re-w07-s081", "bank": "re", "week": 7, "title": "Leverage and Financing Risk", "prompt": "A sponsor is comparing two capital structures for the same office acquisition. One uses a smaller mortgage and more common equity. The other uses a larger mortgage, leaves less initial equity in the deal, and carries tighter coverage covenants and a larger balloon payment.\nThe sponsor argues that the second structure must reduce the investment's overall financing risk because the mortgage's stated interest rate is below the common-equity investors' target return. The property's leases, operating outlook, and purchase price are identical under the two structures. Neither loan is guaranteed by an outside party.\nWhich response best evaluates the sponsor's reasoning?", "fingerprint": "eb77715e922b2a4e48ce4a03c8e093c857ee34b4f3e59b64899a87e4f5dd1d71", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s081", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 81, "answer_slides": [ 82 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s085", "canonical_id": "re-w07-s085", "bank": "re", "week": 7, "title": "Practice", "prompt": "An investor buys a property for $20,000,000 with annual NOI of $1,200,000. A $12,000,000 loan has a 6.00% note rate and a supplied annual mortgage constant of 7.50%. Assume no taxes, acquisition costs, reserves, or capital spending. What is the initial annual cash-on-cash return on the investor's equity?", "fingerprint": "2ff175dfc11253f6d4f2fa7454a0baee08a826301e1229109d1630859774328d", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s085", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 85, "answer_slides": [ 86 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s088", "canonical_id": "re-w07-s088", "bank": "re", "week": 7, "title": "Practice", "prompt": "Setup for this question: Treat the stated IRR as the incremental after-tax return from owning rather than leasing, with a conventional cash-flow pattern and an after-tax hurdle. Assume no additional strategic benefits outside the analysis.\nAlmaden can lease for $1.5M/yr or buy for $30M. Owning yields an after-tax IRR of 4.99%. Almaden’s required return for real estate risk is 8.0%. What is the recommendation?", "fingerprint": "76fea9a59b0765398490aafad18c88ecf8be617d56bdae4c8a5f665f625d5403", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w07-s088", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 88, "answer_slides": [ 89 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s090", "canonical_id": "re-w07-s090", "bank": "re", "week": 7, "title": "Practice", "prompt": "A corporation is evaluating its long-term occupancy strategy for a highly customized manufacturing plant. What is a primary reason the corporation may choose to own rather than lease its real estate?", "fingerprint": "dfcce2b505df9673309b240dfef7eef1fb796a9128d4ec3115e0b1e127d772ad", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w07-s090", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 90, "answer_slides": [ 91 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s093", "canonical_id": "re-w07-s093", "bank": "re", "week": 7, "title": "Practice", "prompt": "How does analyzing a sale-leaseback differ from analyzing whether to own or lease in the first place?", "fingerprint": "133d46a35787bb3eb31630e59d0c13e3525b4c6b34023ee01c1ae4427339ce0d", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s093", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 93, "answer_slides": [ 94 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-x09", "canonical_id": "re-w07-x09", "bank": "re", "week": 7, "title": "All-in borrowing cost including fees", "prompt": "A property owner signs a two-year, $2,000,000 interest-only loan at 7.00% annually. A 2.00% origination fee is withheld from the loan at closing. Interest is paid at each year-end, and the full principal is repaid with the second interest payment. There are no other fees or taxes. What annual effective borrowing cost is implied by the owner’s actual cash flows? Round to two decimal places.", "fingerprint": "35d4ba4d5a9c20863bb4c73a5ddd444eba6183e769311adef6d2a7ef46b084c3", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-x09", "locations": [] }, { "id": "re-w07-s097", "canonical_id": "re-w07-s097", "bank": "re", "week": 7, "title": "Practice", "prompt": "The owner of a neighborhood retail center is offered a two-year, interest-only bridge mortgage with a $1,000,000 face amount and a 7.00% annual interest rate. Interest is paid at the end of each year. All principal is repaid with the second interest payment.\nThe lender withholds a nonrefundable 3.00% origination fee at closing, so the borrower receives $970,000. There are no other fees, taxes, or cash flows.\nWhat is the borrower's effective annual financing cost, defined as the IRR of the actual financing cash flows, rounded to two decimals?", "fingerprint": "cad93319fdf530b1082169d4dfd0da4dbc98dcd3251c9af747755838095356c6", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s097", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 97, "answer_slides": [ 98 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-x07", "canonical_id": "re-w07-x07", "bank": "re", "week": 7, "title": "Comparable beta and property-company leverage", "prompt": "A comparable property company has an equity beta of 1.20 and market-value debt-to-equity ratio of 0.50. Assume debt beta is zero and neither company pays entity-level income tax. The subject property company will use a debt-to-equity ratio of 0.80. The risk-free rate is 4.00% and the market risk premium is 5.50%. Using the comparable’s unlevered beta and then the subject’s leverage, what CAPM cost of equity applies to the subject? Round to two decimal places.", "fingerprint": "75aa70e789b3841613bb44c9cfc0226973e375d36c126c90f37294dba05ef0e4", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-x07", "locations": [] }, { "id": "re-w07-s100", "canonical_id": "re-w07-s100", "bank": "re", "week": 7, "title": "Practice", "prompt": "An industrial property fund is estimating the required return on its common equity. Its units are not publicly traded, so the analyst uses a listed industrial REIT with similar property risk and operating leverage as the beta comparable.\nComparable equity beta: 1.60.\nComparable market-value debt-to-equity ratio: 0.50.\nFund target market-value debt-to-equity ratio: 0.25.\nRisk-free annual rate: 4.00%.\nExpected annual market return: 10.00%.\nFor this analysis, neither vehicle incurs entity-level income tax. Assume zero debt beta, diversified investors, and no additional size or illiquidity premium. Ignore investor-level taxes.\nWhat is the fund's annual CAPM cost of equity, rounded to two decimals?", "fingerprint": "32c023209ae3f33d1b954fb1525743ca1448c382b1aee78cf637129b0518f2c9", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s100", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 100, "answer_slides": [ 101 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-s103", "canonical_id": "re-w07-s103", "bank": "re", "week": 7, "title": "Practice", "prompt": "A real estate fund holds a warehouse portfolio through a taxable property-owning corporation. The fund is estimating that corporation's WACC for a DCF of cash flow after operating taxes and capital spending, but before financing payments.\nThe risk-free rate is 3.50%, the corporation's equity beta is 1.30, and the market risk premium is 5.50%. Comparable new mortgage debt would cost 6.50% annually before tax. The annual mortgage constant on an existing amortizing loan is 8.00%.\nThe property-owning corporation can use all modeled interest deductions at its 25.00% corporate tax rate. There is no preferred equity. Ignore taxes on distributions to the fund or its investors.\nUsing market-value weights and CAPM, what WACC should the fund use for this property-owning corporation? Round to two decimals.", "fingerprint": "23f27b120d620d855c5a2c098a9e125022d4fd80bfa22199b8014604de19dae3", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w07-s103", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 103, "answer_slides": [ 104 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w07-x08", "canonical_id": "re-w07-x08", "bank": "re", "week": 7, "title": "Three-source property-company WACC", "prompt": "A taxable property company targets market-value capital weights of 50% debt, 10% preferred equity, and 40% common equity. Debt costs 6.50% before tax, preferred equity costs 9.00%, and common equity costs 12.00%. Its marginal corporate tax rate is 25%, interest is fully deductible, and preferred distributions are not deductible. What WACC follows from these assumptions? Round to two decimal places.", "fingerprint": "453680e6c8d99981789d618af15a01433155135f72ad2aa2993d4b3cf63938e5", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-x08", "locations": [] }, { "id": "re-w07-s106", "canonical_id": "re-w07-s106", "bank": "re", "week": 7, "title": "Practice", "prompt": "A real estate fund will finance an apartment acquisition with three sources of capital:\nAll three sources are issued at par with no fees. The preferred equity pays a fixed return, has no participation in residual profits, and is redeemed at par. The mortgage's annual payment constant is 8.00%, including principal and interest.\nThe fund incurs no entity-level income tax; ignore investor-level taxes. It is valuing cash flow before payments to any capital provider.\nWhat is the acquisition's weighted average cost of capital, including all three funding sources, rounded to two decimals?", "fingerprint": "ca8f5d0fd8ad5b9dc0530d4de8fd879e190e03ca1f3f9f132c540fd2be9944dd", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w07-s106", "locations": [ { "deck_id": "1WnYlqQZA9aT6r7Gp3vDHSYVybmiu9gXC", "deck_name": "Week 7 - FNCE 118 & FNCE 128 - Debt Underwriting and Cost of Capital - Shared Master.pptx", "question_slide": 106, "answer_slides": [ 107 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s005", "canonical_id": "re-w08-s005", "bank": "re", "week": 8, "title": "Practice", "prompt": "An investor compares common shares of a listed mortgage REIT with an interest in a private real estate fund that offers quarterly redemption requests subject to gates. Which assessment is best supported?", "fingerprint": "3f3402436c9dd4f7d1edc7c0c78d43451f7a112dfa055fa0123b2a9d64a3d57b", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s005", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 5, "answer_slides": [ 6 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s009", "canonical_id": "re-w08-s009", "bank": "re", "week": 8, "title": "Acquisition Sources and Uses", "prompt": "A partnership is acquiring a retail property. Its closing budget includes:\nPurchase price: $6,000,000.\nClosing costs, excluding lender fees: $120,000.\nImmediate building repairs: $280,000.\nInitial cash reserve: $100,000.\nThe lender approves a $3,900,000 mortgage and withholds an origination fee equal to 1% of that loan amount from the proceeds. A preferred-equity investor contributes $600,000 at closing. The remaining cash must come from the common-equity investors, with the LP funding 80% and the GP funding 20% of that common-equity requirement.\nNo seller credit or other funding is available. How much cash must the LP and GP contribute, respectively?", "fingerprint": "3321a2f3ce5f2f433062d29e4f8d605558810df773d88b5e1e8050e68b4a8d56", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s009", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 9, "answer_slides": [ 10 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s012", "canonical_id": "re-w08-s012", "bank": "re", "week": 8, "title": "Capital Calls and Member Loans", "prompt": "A property LLC must pay a $520,000 repair invoice this month. It has $90,000 of unrestricted cash, but its loan requires at least $35,000 to remain in that account after the invoice is paid. An approved $65,000 insurance reimbursement will arrive next month; it cannot be borrowed against or used to pay this month's invoice.\nThe LP owns 80% of the common equity, and the GP owns 20%. The members must contribute their ownership shares of the cash needed after using the available property cash. The GP can pay only $45,000 toward its required contribution. The LP pays its own full contribution and advances the rest of the GP's shortfall to the LLC as a member loan. No new equity units are issued for the loan, and it does not change the common-equity interests.\nHow much new cash must the LP supply this month, and what percentage of common equity will it own immediately afterward?", "fingerprint": "2b231cfd6e8a400863809804d9a4dc5574cbca940207d89abd566f1664c69a19", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s012", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 12, "answer_slides": [ 13 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s015", "canonical_id": "re-w08-s015", "bank": "re", "week": 8, "title": "Practice", "prompt": "An LP’s agreement gives it capital back and an accrued preference before sponsor promote. The investment has insufficient cash to pay both. The sponsor has given no return guarantee, and no breach or misconduct is alleged. Which conclusion follows?", "fingerprint": "3b664f4d5b56cc1353b986968ef89b4259fc4fbc135e298806f3c4f28008ceb5", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s015", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 15, "answer_slides": [ 16 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s018", "canonical_id": "re-w08-s018", "bank": "re", "week": 8, "title": "Practice", "prompt": "A property reports $600,000 of NOI. It then pays $90,000 of capital improvements and $350,000 of annual debt service. An asset-management fee is already included in NOI. There are no other cash items. How much operating cash is available to the equity waterfall?", "fingerprint": "4cc175fe12418412e6884a48310d6f7868539227483c888cb89e098a2671567a", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s018", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 18, "answer_slides": [ 19 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s020", "canonical_id": "re-w08-s020", "bank": "re", "week": 8, "title": "Final Equity Distribution", "prompt": "A partnership sells an industrial property for $8,800,000 at the end of the year. Selling costs are 2.5% of the gross sale price. The lender's final payoff statement is $5,100,000, including all amounts required to release the mortgage.\nSeparately, the property has generated $185,000 of cash available to equity during the year. That amount is already net of operating expenses, capital expenditures, and the year's scheduled debt service. It has not yet been distributed and is not included in the sale price or lender payoff.\nThe partnership will distribute all available cash after closing. There are no other liabilities, taxes, reserves, or transaction costs.\nWhat is the total final cash distribution to the equity investors?", "fingerprint": "56e9339835645fcd181a44b12c10ba7eacb4b99e3bab8d85a31e05ebbac5b140", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s020", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 20, "answer_slides": [ 21 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s023", "canonical_id": "re-w08-s023", "bank": "re", "week": 8, "title": "Cash Available for Distribution", "prompt": "An apartment partnership starts the year with $60,000 of unrestricted cash. In separate accounts, it holds $40,000 of tenant security deposits and a $35,000 lender-controlled capital reserve. Neither separate account is included in the $60,000 opening balance.\nThe property manager reports $500,000 of annual NOI. This includes $25,000 of rent billed during the year that remains uncollected at year-end. All other income included in NOI was collected, and all expenses deducted in NOI were paid. The partnership also pays $80,000 of building capital expenditures and $300,000 of total mortgage debt service.\nAfter the capital work is completed, the lender releases the entire $35,000 capital reserve into unrestricted cash before year-end. The tenant deposits remain restricted. The partnership must retain a $100,000 ending unrestricted cash balance after any distribution. There are no other cash flows or restrictions.\nWhat is the maximum cash distribution the partnership can make to investors at year-end?", "fingerprint": "5a40265f9b7c6e132761b0ed33d025a50fc50c9b4abe67785241854f2859ea76", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s023", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 23, "answer_slides": [ 24 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s027", "canonical_id": "re-w08-s027", "bank": "re", "week": 8, "title": "Practice", "prompt": "A property costs $8,000,000 and produces annual NOI of $560,000. An initial $5,000,000 loan has a 6.0% annual mortgage constant. Equity funds the remaining price. Assume no fees, reserves, capital spending, or waterfall allocation. What is the first-year cash-on-cash return, rounded to two decimals?", "fingerprint": "13a3dc47b279e2e538b5beda7af011e04be1a4a2517faede5bad631fb452892b", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s027", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 27, "answer_slides": [ 28 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s030", "canonical_id": "re-w08-s030", "bank": "re", "week": 8, "title": "Practice", "prompt": "A buyer pays $10,000,000 for a property, plus $200,000 of closing costs and $300,000 of immediate improvements. A $6,500,000 loan funds part of the acquisition; there are no loan fees. Equity pays the remaining initial uses.\nDuring Year 1, the property generates $840,000 of NOI and incurs $90,000 of additional capital spending. Annual debt service is $520,000, comprising $390,000 interest and $130,000 principal. The property's appraised value rises by $500,000, but there is no sale or refinancing.\nCalculate (1) unlevered operating cash yield, using cash after Year 1 capital spending divided by all initial property costs, and (2) levered operating cash-on-cash yield, using cash after Year 1 capital spending and debt service divided by initial equity. Both measures exclude unrealized appreciation and are before any GP/LP allocation.\nWhat are the two yields, respectively, rounded to two decimals?", "fingerprint": "cd74aad76d2a74fb78ef8a3a726f4516dabb2a0ae3d7f0837ef4ae438793dbc1", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s030", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 30, "answer_slides": [ 31 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s033", "canonical_id": "re-w08-s033", "bank": "re", "week": 8, "title": "Unlevered and Levered Cash Yields", "prompt": "An investor buys an industrial property for $5,000,000 and pays $100,000 of closing costs and $100,000 for immediate improvements. A $3,200,000 mortgage funds part of those initial uses; the remainder is contributed as equity. There are no financing fees or other initial funding sources.\nDuring the first full year, NOI is $416,000. Recurring capital expenditures are $52,000, and total mortgage debt service is $244,000, consisting of $192,000 of interest and $52,000 of principal. A broker estimates that the property's value increased by $260,000, but there is no sale or refinancing.\nMeasure the unlevered cash yield after recurring capital expenditures on total acquisition cost, including closing costs and immediate improvements. Measure the levered cash yield on the initial equity contribution, after all debt service and recurring capital expenditures.\nWhat are those two annual cash yields, respectively?", "fingerprint": "f60a771ec2b61157a49cbf16e31f98c374522b5771fc75fd60b7e68e11c6d1c0", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s033", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 33, "answer_slides": [ 34 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s035", "canonical_id": "re-w08-s035", "bank": "re", "week": 8, "title": "Cash Yield and Total Performance", "prompt": "Two apartment investments have the same initial equity contribution. Property A is expected to distribute more cash to equity during the first year than Property B. However, Property A has deferred building work, concentrated lease expirations, and a large mortgage balance due in three years. Property B has recently completed its major repairs and has a longer-term mortgage.\nThe marketing materials rank Property A as the better investment solely because of its higher first-year cash-on-cash return. The forecasts do not show the cash required for future repairs or refinancing, and no sale-price assumptions are provided.\nWhich conclusion is best supported by the information?", "fingerprint": "1404f39c4c0ca5136dc2b86b41addd10b8cae30109c4bcbf6bf47846a873f3ac", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s035", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 35, "answer_slides": [ 36 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s037", "canonical_id": "re-w08-s037", "bank": "re", "week": 8, "title": "Practice", "prompt": "Two property partnerships each began with $1,200,000 of equity, including the same initial reserve funding. This year each generates $96,000 of recurring cash after operating expenses, capital spending, and debt service.\nPartnership A also receives a one-time $36,000 release from its previously funded lender reserve and distributes all $132,000. Partnership B's reserve remains restricted, so it distributes $96,000. Neither sells property or raises new capital.\nWhich statement best evaluates the current-year results?", "fingerprint": "202d99754b3750a2c5b8309c8c858dfe38a9a14325e586611716f2faa5e43091", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s037", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 37, "answer_slides": [ 38 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s039", "canonical_id": "re-w08-s039", "bank": "re", "week": 8, "title": "Practice", "prompt": "Two investors buy identical properties. One pays entirely with equity; the other uses debt. Values later fall, while the debt balance stays fixed and remains below property value. Ignore operating cash and selling costs. Which comparison is correct?", "fingerprint": "797ede7ad2075893d787d98a19427f915190b5cf019641c500180beece05f7e8", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w08-s039", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 39, "answer_slides": [ 40 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s042", "canonical_id": "re-w08-s042", "bank": "re", "week": 8, "title": "Practice", "prompt": "Two investments each require $100,000 initially and distribute $200,000 once, with no other cash flows. Investment A pays at the end of Year 3; Investment B pays at the end of Year 6. Their risks are not specified. Which conclusion is supported without calculating IRR?", "fingerprint": "57b63167fa4520e8beb96d6a0b24e1ea447ea29ad54e152eb5b712316a076d77", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s042", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 42, "answer_slides": [ 43 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s046", "canonical_id": "re-w08-s046", "bank": "re", "week": 8, "title": "Practice", "prompt": "A property costs $800,000 plus $20,000 of closing costs. A $500,000 interest-only loan charges 6% annually and is repaid at the end of Year 2. NOI is $65,000 at each year-end. The property sells for $900,000 at the end of Year 2, with $20,000 selling costs. Assume no other cash items or GP/LP allocation. What is the annual levered IRR, rounded to two decimals?", "fingerprint": "ba04e13c65e5408c4a994dd5cb6478922227da2c3b61b08a92e6a452802f4f38", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s046", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 46, "answer_slides": [ 47 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s048", "canonical_id": "re-w08-s048", "bank": "re", "week": 8, "title": "Practice", "prompt": "An investor acquires a property for $4,000,000 and pays $80,000 of closing costs plus $120,000 of immediate capital work. A $2,400,000 loan is interest-only at 6.00% annually, with no fees and no principal amortization. The entire loan is repaid at the end of Year 3.\nAt the end of Year 3, the property sells for $4,800,000. Selling costs are 2.00% of the sale price. All annual operating and financing cash flows occur at year-end. There are no other cash flows or taxes, and no GP/LP waterfall applies.\nWhat are the annual unlevered property IRR and levered equity IRR, respectively, rounded to two decimals?", "fingerprint": "c133ace7d12b739ca66e633a36246fc97b469e1fa5c33ad87150a19c11341759", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s048", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 48, "answer_slides": [ 49 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s054", "canonical_id": "re-w08-s054", "bank": "re", "week": 8, "title": "Practice", "prompt": "An LP has $500,000 outstanding for three full years with no interim distributions. Compare an 8% simple annual preference with an 8% preference compounded annually. What is the accrued preference under each, excluding return of capital?", "fingerprint": "5053320cbe06eddd316a6180365ea34d455326732142764a3beb95244b34a2f9", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s054", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 54, "answer_slides": [ 55 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s057", "canonical_id": "re-w08-s057", "bank": "re", "week": 8, "title": "Practice", "prompt": "LP supplied all $2,000,000 of equity; GP supplied none. The agreement returns LP capital first, then pays $500,000 of accrued preference, then splits residual profits 80% LP / 20% GP. There is no catch-up. Only $2,300,000 is available after all fees and debt payments. Which allocation follows the agreement?", "fingerprint": "9c441e141921f280b6d98ca51b20c105972420b7aef37fb9b820fe3ce9c89d04", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s057", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 57, "answer_slides": [ 58 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s059", "canonical_id": "re-w08-s059", "bank": "re", "week": 8, "title": "Practice", "prompt": "An apartment investment venture has lost money. The LP supplied 90.00% of its equity capital and the GP supplied 10.00%. The agreement requires available cash after property sale costs and mortgage repayment to return both investors' capital pro rata before any preferred return or carried interest is paid. It provides no external guarantee and no separate GP fee.\nAt liquidation, the remaining cash is insufficient to return all contributed capital. An analyst objects to any payment to the GP, arguing that the GP cannot receive money until the LP has recovered its entire investment.\nWhich instruction correctly implements this agreement?", "fingerprint": "d49881774acf55d3d21b85b2a1e6e92328611d3044441953587ee79bb6ac32d1", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s059", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 59, "answer_slides": [ 60 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s061", "canonical_id": "re-w08-s061", "bank": "re", "week": 8, "title": "GP Claims After a Loss", "prompt": "A property partnership sells its only asset at a loss. After paying the mortgage and outside closing costs, it has insufficient cash to return all investor capital.\nThe GP submits three claims: reimbursement of documented third-party property expenses it previously paid personally; return of its invested capital; and an incentive distribution for completing the sale. The expense reimbursement was approved under the agreement and is payable before investor distributions. Available capital-return cash is allocated to the LP and GP in proportion to their unreturned capital. The incentive distribution is permitted only after all investor capital and the required preference have been paid. There is no separate disposition fee.\nThe administrator must approve or reject these claims. Which instruction follows the agreement?", "fingerprint": "8a57a4bf323201579e2492d0e1b74b762e1526155d8ee42fdda6261de85e00a8", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s061", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 61, "answer_slides": [ 62 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s065", "canonical_id": "re-w08-s065", "bank": "re", "week": 8, "title": "Distribution Waterfall", "prompt": "A real estate partnership has $2,000,000 of cash available for distribution after selling its only property. All mortgage debt, selling costs, taxes, and fees have already been paid.\nThe LP contributed all $1,500,000 of the partnership's equity, and none of that capital has been returned. The GP contributed no capital. The agreement directs the available cash through these steps:\nReturn the LP's outstanding capital.\nPay the LP its $120,000 of accrued and unpaid preferred return.\nDistribute the remaining cash 80% to the LP and 20% to the GP.\nThere is no GP catch-up and no additional fee. How much cash will the LP and GP receive, respectively?", "fingerprint": "fb3f40be1ef575d65fe62349414184218cb4b815b0b96abcc542a47c3c6b2a31", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s065", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 65, "answer_slides": [ 66 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s067", "canonical_id": "re-w08-s067", "bank": "re", "week": 8, "title": "Practice", "prompt": "LP contributes $900,000 and GP $100,000. After three full years, $1,600,000 is available to equity, with no interim cash flows or fees. The agreement returns both contributions, pays both investors an 8% simple annual preference, then splits residual cash 80% LP / 20% GP. There is no catch-up or extra GP residual share. What is the LP’s total distribution?", "fingerprint": "adb30b8d3bdbf9c3d5d9d464082b16746bb7b55367c08cf7462844f4097b1682", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s067", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 67, "answer_slides": [ 68 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s070", "canonical_id": "re-w08-s070", "bank": "re", "week": 8, "title": "Practice", "prompt": "After capital and preference have been paid, $500,000 remains. The contract gives the sponsor a 20% promote from that pool, then distributes the remaining 80% pro rata to LP and GP capital. GP supplied 10% of capital; LP supplied 90%. What are GP’s total receipts from this residual pool?", "fingerprint": "969e77632e4b71adb6a2d89637cb9d4f74618f31fc996ad105ffb12a9818e234", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s070", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 70, "answer_slides": [ 71 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s072", "canonical_id": "re-w08-s072", "bank": "re", "week": 8, "title": "Fees, Preference, and Promote", "prompt": "An apartment partnership pays its GP a fixed management fee for managing the property. The agreement treats an earned, approved management fee as a property operating cost, paid before cash enters the investor distribution waterfall. The GP also earns a promote, but only after the LP's cumulative preferred return has been satisfied. Unpaid preference carries forward.\nAt year-end, cash is sufficient to pay the lender, required reserves, and the earned management fee. The cash remaining afterward is insufficient to satisfy the LP's outstanding preference, including the unpaid balance from last year. The GP submits payment requests for both the management fee and a promote, explaining that it performed the required management services and improved occupancy.\nWhich payment instruction should the administrator issue under the agreement?", "fingerprint": "2b1479725c39b2f22254783e343c2d736d3ad2f0cea5bd120ee5216c0504e593", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s072", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 72, "answer_slides": [ 73 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s074", "canonical_id": "re-w08-s074", "bank": "re", "week": 8, "title": "GP Fees and Promote", "prompt": "A partnership has $1,500,000 of cash after paying property expenses, selling costs, and debt. It must first pay the GP a $30,000 disposition fee from this cash. The remaining amount passes through the following distribution steps:\nReturn $900,000 of unreturned LP capital and $100,000 of unreturned GP capital.\nPay $80,000 of accrued and unpaid preferred return, allocated 90% to the LP and 10% to the GP.\nSplit all remaining cash 80% to the LP and 20% to the GP. The GP's entire share of this final tier is its promote; it receives no additional co-investment share of that tier.\nThere is no catch-up or other payment. What is the GP's total cash receipt, including its fee, and how much of that receipt is promote?", "fingerprint": "460b68ca7ab4f3154479446e5bf4adcd302e4077b1b5aed52ddda381a1e33a0a", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s074", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 74, "answer_slides": [ 75 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-x03", "canonical_id": "re-w08-x03", "bank": "re", "week": 8, "title": "Full catch-up when cash is insufficient", "prompt": "A waterfall has already returned all LP capital and paid the LP $320,000 of preferred profit. The GP has received no profit. The next tier gives 100% of available cash to the GP until its cumulative profit equals 20% of combined LP and GP profit. Only $55,000 remains to distribute, and no later cash will arrive. There is no GP co-investment. How much of this remaining cash does the GP receive? Round to the nearest dollar.", "fingerprint": "1acba9fe611329f1b256862e788d19c0f733ff74cae3ac66eb75679036c5409d", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-x03", "locations": [] }, { "id": "re-w08-s077", "canonical_id": "re-w08-s077", "bank": "re", "week": 8, "title": "Practice", "prompt": "Two otherwise identical agreements return LP capital and pay the same preference. LP supplies all capital; GP supplies none. Agreement A then has a full, 100%-to-GP catch-up for 20% carry on total profit, including preference. Agreement B has no catch-up. Both finish with an 80/20 LP/GP split. Available profit is sufficient to complete every tier. Which comparison is correct?", "fingerprint": "624e307a831652c709e40cd6f3e01ff6db9ed287c8753ab4f4109543b7ffd633", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s077", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 77, "answer_slides": [ 78 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s080", "canonical_id": "re-w08-s080", "bank": "re", "week": 8, "title": "Practice", "prompt": "After capital and preference are paid, $600,000 remains. LP must receive another $240,000 to reach its next IRR hurdle. The agreement splits cash 80% LP / 20% GP until LP receives that amount, then splits only the remaining cash 70% LP / 30% GP. GP has no co-investment; there is no catch-up. How much does GP receive from the $600,000?", "fingerprint": "37261e2c2ffa33e1a16f2d187fae8493f2f76d9012bc8b28db5e4712661b4f2f", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s080", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 80, "answer_slides": [ 81 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s083", "canonical_id": "re-w08-s083", "bank": "re", "week": 8, "title": "Practice", "prompt": "Two funds each have $10M of contributed capital and no prior distributions. Their first exit produces $6M. Fund A’s deal-by-deal terms permit $300,000 of promote now and include a clawback. Fund B must return all fund capital and preference before promote. Remaining investments may lose money. Which assessment best describes the difference?", "fingerprint": "4ab3fa71215e5e0c63cd7ce0483b230c3b129b483dcb3cafd3d593f240f9e52e", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s083", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 83, "answer_slides": [ 84 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s085", "canonical_id": "re-w08-s085", "bank": "re", "week": 8, "title": "Carry and Clawback Protection", "prompt": "A real estate fund may distribute provisional carry to its GP after a profitable property sale. The agreement requires the GP to repay any excess over its final entitlement when the entire fund is reconciled. Other properties remain unsold and may produce losses. The first sale's profit and the provisional carry calculation have both been verified.\nThe GP is a special-purpose entity whose only significant asset would be the carry payment. It plans to distribute that cash to its owners immediately. The owners have not guaranteed the GP's repayment obligation. The agreement allows the fund to retain provisional carry in a segregated escrow it controls until final entitlement is established; doing so does not change the agreed profit split.\nWhich condition on the carry payment most directly protects the LPs' ability to recover an eventual excess distribution?", "fingerprint": "58a0fc4145c8c48ae468c1260fc7cc97e70b8d4b16ee2ecfae66a922b0a45047", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s085", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 85, "answer_slides": [ 86 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-x07", "canonical_id": "re-w08-x07", "bank": "re", "week": 8, "title": "Net LP IRR after vehicle-level charges", "prompt": "An LP contributes $2,200,000 at closing. The venture allocates the LP $210,000 in Year 1, but a separate investor-level fee of $30,000 is withheld from that distribution. At the end of Year 2, the LP receives $2,650,000 net of all debt, carry, fees, and sale costs. There are no further contributions or distributions. What annual IRR does the LP actually earn? Round to two decimal places.", "fingerprint": "ce89a2eb238bf68a496763236e365c0bedbf0f5dd59f0dbac380d4d62815350c", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-x07", "locations": [] }, { "id": "re-w08-s088", "canonical_id": "re-w08-s088", "bank": "re", "week": 8, "title": "Practice", "prompt": "An LP pays $600,000 of investment capital plus a $30,000 acquisition fee today. Forecast annual distributions already deduct management fees. Quoted exit proceeds deduct loan payoff and brokerage but exclude a $12,000 disposition fee payable by LP at exit. Which cash-flow treatment should the LP use to calculate its net return?", "fingerprint": "b31a4bfb161ceb06475c21794a25af8eab7060c7702a0b44a566d1f38ca9c53c", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s088", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 88, "answer_slides": [ 89 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s090", "canonical_id": "re-w08-s090", "bank": "re", "week": 8, "title": "Net Investor Returns", "prompt": "An LP contributes $600,000 to acquire an interest in a property partnership and pays a separate $30,000 acquisition fee from personal funds at closing. The LP later contributes another $70,000 for a capital call.\nDuring the holding period, the LP receives three operating distributions of $80,000, $100,000, and $120,000. At the final sale, the LP receives a separate $680,000 distribution, including the return of investment capital. That sale distribution is already net of the partnership's debt payoff, sale costs, and GP compensation. None of the three operating distributions is included in the $680,000.\nFor this question, include every stated LP cash payment in invested cash and every stated LP cash receipt in distributions. Ignore timing and taxes.\nWhat are the LP's net cash profit and equity multiple, respectively?", "fingerprint": "b8254f92b5167edc9f4b8ee7e3eb39265e6650e72a2a57b5776ab17a6cc4cdc8", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s090", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 90, "answer_slides": [ 91 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s092", "canonical_id": "re-w08-s092", "bank": "re", "week": 8, "title": "Practice", "prompt": "Today an LP funds $1,000,000 of investment capital plus a $40,000 acquisition fee. It receives $60,000 at each year-end for three years and an additional $1,250,000 of net sale proceeds at Year 3. All inflows are already net of other fees, debt payoff, and waterfall allocations. What are annual IRR and equity multiple, rounded to two decimals?", "fingerprint": "38bfd3d431157a6473b0571708bf75f5bff96c79afad02e1f7bb1611000bcc61", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s092", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 92, "answer_slides": [ 93 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s097", "canonical_id": "re-w08-s097", "bank": "re", "week": 8, "title": "Practice", "prompt": "An industrial development joint venture has 6,000,000 common units held by the landowner and 2,000,000 common units held by the development sponsor. All units have identical economic rights. There is no preferred equity, promote, or other ownership claim.\nThe venture raises equity for two stages of the project:\nEach stated equity value is already net of property debt. Each new partner buys newly issued common units at the price implied by that stage's equity valuation and existing unit count. Earlier partners contribute no additional cash, and no units are transferred or retired.\nWhat are the final ownership percentages after both contributions, in this order: landowner / development sponsor / construction equity partner / lease-up equity partner? Round each to two decimals.", "fingerprint": "728be2bd5530369465fb63c557f559fbebc7e46d7045fade9a5747a4df1509e8", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s097", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 97, "answer_slides": [ 98 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-x01", "canonical_id": "re-w08-x01", "bank": "re", "week": 8, "title": "Capital-call dilution at a stated unit price", "prompt": "A property venture has 1,000 outstanding common units: the LP owns 900 and the GP owns 100. The agreement funds a new $600,000 capital call by issuing new units at a fixed $3,000 per unit. The LP supplies the entire call and the GP contributes nothing. Existing units remain outstanding, and there are no penalties, preferences, or promote changes. What percentage of common units will the LP own afterward? Round to two decimal places.", "fingerprint": "f23fd16b7396f1ce17d1f5c597b58a1fc103ba7479c7ea66d2535a39a5fa7ffd", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-x01", "locations": [] }, { "id": "re-w08-s100", "canonical_id": "re-w08-s100", "bank": "re", "week": 8, "title": "Practice", "prompt": "A multifamily development joint venture needs $1,500,000 of additional cash to complete construction. Its lender will not increase the loan. The current common-unit ownership is:\nThe JV agreement and this capital call provide that:\nThe cash requirement is allocated in proportion to current ownership. The sponsor and LP A fund their shares; LP B contributes nothing.\nLP A also funds all of LP B's shortfall, so the full $1,500,000 is raised.\nAll new cash buys common units at the same price, based on an agreed $4,800,000 value of existing common equity immediately before the contribution. This equity value is already net of property debt.\nAll units have identical rights. There are no member loans, preferred claims, or additional penalty units.\nWhat are (1) LP A's total cash contribution in this capital call and (2) LP B's ownership immediately afterward? Round the contribution to the nearest dollar and ownership to two decimals.", "fingerprint": "943838b6bf56ef36e0d78ee6add070e3ea9aba8876624200744f5faf9b73d5b9", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s100", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 100, "answer_slides": [ 101 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s103", "canonical_id": "re-w08-s103", "bank": "re", "week": 8, "title": "Practice", "prompt": "A sponsor is acquiring a multi-tenant industrial park through a property-owning LLC. It must complete the following acquisition sources-and-uses schedule at closing:\nCommon equity funds the remaining acquisition cash requirement. The LP supplies 90.00% of common equity and the GP supplies 10.00%. The preferred investor is separate from both common investors. There are no other sources, fees, or prior deposits.\nWhat common-equity contributions are required from the LP and GP, respectively?", "fingerprint": "bf845642c8551f9e900651f3106b1eb07d4c08e9b28039b74b4b3f9ee2889aa5", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s103", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 103, "answer_slides": [ 104 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s106", "canonical_id": "re-w08-s106", "bank": "re", "week": 8, "title": "Practice", "prompt": "A buyer is evaluating a suburban office property and wants its acquisition bid to satisfy two cash-yield requirements in a downside case. The operating assumptions are:\nThe acquisition and financing terms are:\nThe lender funds 60.00% of the agreed purchase price, with no loan fee.\nThe annual mortgage constant is 8.00%, including both interest and principal. The note rate is 6.00%.\nThe buyer pays an additional $300,000 of acquisition costs and immediate improvements at closing.\nBoth requirements must be met using the downside cash flows:\nBoth cash-yield numerators deduct recurring capital spending; the levered numerator also deducts full debt service. There are no other cash flows or taxes.\nWhat is the maximum purchase-price estimate satisfying both requirements? Solve using unrounded values, then report the result to the nearest $1,000.", "fingerprint": "d5d297e922f80a6a0cdfe1ff5e96e0b9b359dae33f9fbf46298b9f00c1a470bc", "score": 8, "components": { "reasoning": 3, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s106", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 106, "answer_slides": [ 107 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s109", "canonical_id": "re-w08-s109", "bank": "re", "week": 8, "title": "Practice", "prompt": "A fund is preparing an acquisition bid using the following year-end operating forecast:\nAt the end of Year 3, the fund also expects $3,600,000 of property sale proceeds, after selling costs but before loan repayment. These proceeds are separate from the operating cash flow above.\nThe acquisition and financing terms are:\nThe closing costs and immediate improvements are separate from the forecast cash flows. The fund requires a 14.00% annual equity return. There are no taxes, other cash flows, or GP/LP allocations.\nWhat is the maximum property purchase price the fund can offer while meeting its equity hurdle, rounded to the nearest $1,000?", "fingerprint": "d1d9b7ceb5c4be4194894996286e49b89b1deb393743726dfee73a1eec3a2746", "score": 8, "components": { "reasoning": 3, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s109", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 109, "answer_slides": [ 110 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-x02", "canonical_id": "re-w08-x02", "bank": "re", "week": 8, "title": "Preference after an interim capital return", "prompt": "An LP contributes $2,000,000 on January 1. A simple, noncompounding 8.00% annual preferred return accrues on unreturned capital using monthly fractions. On July 1, the venture returns $500,000 of capital; it pays no preference then. No other distributions occur before December 31. What total preference has accrued for the year before the December 31 distribution? Round to the nearest dollar.", "fingerprint": "619526c4b9d3cd67927fe8a372f9c18b31d82cff4b4da5fa515a501b1cc3c801", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-x02", "locations": [] }, { "id": "re-w08-s112", "canonical_id": "re-w08-s112", "bank": "re", "week": 8, "title": "Practice", "prompt": "An LP contributes $2,000,000 to an industrial-property partnership at time 0. The partnership provides an 8.00% annual preferred return. At the end of Year 1, the LP receives $660,000: $160,000 fully pays the first year's preference, and $500,000 returns capital.\nAfter that payment, preference accrues only on the remaining capital. Unpaid preference compounds annually at 8.00%. There is no distribution at the end of Year 2 and no additional contribution. At the end of Year 3, the agreement requires all remaining LP capital and accrued preference to be paid before the GP receives any carry. There are no other fees or priority claims.\nHow much must be allocated to the LP at the end of Year 3 to satisfy that requirement?", "fingerprint": "0e541cb7f7f66bb55b52bdd4788f5eff423f7f834619521a4223ec4d38082044", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s112", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 112, "answer_slides": [ 113 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-x05", "canonical_id": "re-w08-x05", "bank": "re", "week": 8, "title": "GP fee, co-investment, and promote receipts", "prompt": "A property venture has $2,900,000 available before a $100,000 GP asset-management fee. After paying that fee, it returns $2,000,000 of contributed capital pro rata: 90% LP and 10% GP. No preference is due. Of the remaining profit, 20% is paid to the GP as promote; the other 80% is split 90% LP and 10% GP. How much total cash does the GP receive, including its fee and returned capital? Round to the nearest dollar.", "fingerprint": "e61565b33af05640088e39f762f56132538a0309ea08a206e21f513d9df14eb6", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-x05", "locations": [] }, { "id": "re-w08-s115", "canonical_id": "re-w08-s115", "bank": "re", "week": 8, "title": "Practice", "prompt": "An LP contributes $1,800,000 and a GP contributes $200,000 to acquire an office property. Three full years later, the property sale leaves $3,400,000 after debt repayment and third-party selling costs, but before an $80,000 disposition fee payable to the GP. No interim cash flows occur.\nThe agreement distributes cash in this order:\nPay the $80,000 GP disposition fee.\nReturn both investors' original capital.\nPay both investors an 8.00% simple annual preference on their original capital for all three years.\nPay 20.00% of the remaining cash to the GP as promote. Allocate the other 80.00% to the LP and GP in proportion to their original capital contributions.\nThere is no catch-up or other fee. What is the GP's total cash receipt at exit, including its fee, capital, preference, promote, and co-investment share?", "fingerprint": "fe7487305005b7c4e02fc793af34f1a9f45c7cbed378ac65df1ebae194165c49", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s115", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 115, "answer_slides": [ 116 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s118", "canonical_id": "re-w08-s118", "bank": "re", "week": 8, "title": "Practice", "prompt": "An LP invests $1,600,000 in a retail-property redevelopment today. The GP contributes no capital. At the end of Year 3, the property is sold and the venture has $2,560,000 available after all fees and debt repayment, with no earlier distributions or additional contributions.\nThe waterfall applies cash in this order:\nReturn the LP's capital.\nPay the LP an 8.00% simple annual preference for three years.\nAllocate 100.00% to the GP until its cumulative share equals 20.00% of all profit distributed to the LP and GP, including the preferred return but excluding returned capital.\nSplit any remaining profit 80.00% LP / 20.00% GP.\nWhat are (1) the GP's distribution in the catch-up tier alone (Tier 3) and (2) the LP's annual IRR after all four tiers? Round the catch-up distribution to the nearest dollar and IRR to two decimals.", "fingerprint": "857ce4dda7e2bf26f8013e5476f017a2e18ee1dfed8f12d07e3c0a3c810e7efa", "score": 8, "components": { "reasoning": 3, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s118", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 118, "answer_slides": [ 119 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-x04", "canonical_id": "re-w08-x04", "bank": "re", "week": 8, "title": "LP IRR hurdle with an interim distribution", "prompt": "An LP invests $1,500,000 at acquisition and receives $120,000 at the end of Year 1. The waterfall requires the LP to reach a 10.00% annual IRR before any cash enters the next promote tier. The next distribution occurs at the end of Year 2. There are no other LP contributions or receipts. How much Year 2 cash must be allocated to the LP to reach that hurdle exactly? Round to the nearest dollar.", "fingerprint": "fc20e5c2811121da92fe72c94a4b4e91a26ad7f550b53116b4893e3941cd0ae1", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-x04", "locations": [] }, { "id": "re-w08-s121", "canonical_id": "re-w08-s121", "bank": "re", "week": 8, "title": "Practice", "prompt": "An LP contributes $1,000,000 to an industrial-property venture at time 0 and receives an $80,000 operating distribution at the end of Year 1. The GP contributes no capital and receives no Year 1 distribution. At the end of Year 2, the property is sold and $1,400,000 is available after all fees and debt payments.\nApply the Year 2 cash in the following order, using all dated LP contributions and distributions in each IRR test:\nAllocate 100.00% to the LP until its annual IRR reaches 8.00%.\nAllocate 80.00% to the LP and 20.00% to the GP until the LP's annual IRR reaches 12.00%.\nAllocate only the remaining cash 70.00% to the LP and 30.00% to the GP.\nThese tiers include return of capital; do not add a separate capital-return or preference tier. There is no catch-up or retroactive change in the split.\nHow much does the GP receive at the end of Year 2, rounded to the nearest $100?", "fingerprint": "08a8a4a69aafc55f6f19309b2cefb8b759e9e0a21c6bfdff22d049d497d24839", "score": 8, "components": { "reasoning": 3, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s121", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 121, "answer_slides": [ 122 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-x06", "canonical_id": "re-w08-x06", "bank": "re", "week": 8, "title": "Final carry clawback", "prompt": "A real estate fund’s final realized profit, after returning all contributed capital and deducting all fund expenses, is $2,400,000 before carried interest. The agreement ultimately allocates 20% of this profit to the GP and 80% to the LPs. The GP has already received $710,000 of interim carry. Ignore taxes, escrow earnings, and any clawback limitation; no preference remains unpaid. What carry must the GP return at final settlement? Round to the nearest dollar.", "fingerprint": "bd2381d34b2d6c532bfd098afc0172bc7d12d030ca0816d20fc1502a955c41a8", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-x06", "locations": [] }, { "id": "re-w08-s124", "canonical_id": "re-w08-s124", "bank": "re", "week": 8, "title": "Practice", "prompt": "A closed-end real estate fund has sold all its properties and is being liquidated. LPs contributed $10,000,000 in total, the GP contributed no capital, and the fund generated $14,000,000 of total realized cash after all expenses and mortgage repayments but before carried-interest allocations. The $14,000,000 includes the cash previously used to pay carry; it is not an additional final distribution.\nThe final whole-fund entitlement returns all LP capital, pays a total $1,100,000 LP preference, provides a full GP catch-up, and then splits remaining profits 80.00% LP / 20.00% GP. The catch-up gives the GP 20.00% of total fund profit, including the preference but excluding returned capital, when sufficient cash is available.\nThe GP has already received $1,250,000 of carry from earlier exits. The agreement requires repayment of any excess over its final entitlement, with no tax cap or other limitation. What clawback does the GP owe?", "fingerprint": "38cfd3f35436f610202fa7c79b76f876474aedf5e1f5d8d74ab91c69b800388a", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w08-s124", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 124, "answer_slides": [ 125 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w08-s127", "canonical_id": "re-w08-s127", "bank": "re", "week": 8, "title": "Practice", "prompt": "A student says, “A REIT must distribute 90% of property NOI, so a public nontraded REIT offers both a predictable payout and exchange liquidity.” Which correction is most accurate?", "fingerprint": "17e43bbfde7e11cf5d2af681a0632bed8048a8a534794f9b104063aaa866bf23", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w08-s127", "locations": [ { "deck_id": "1EqP-DjEApk5Qx-J-ZL4G1L8xYxq38nGh", "deck_name": "Week 8 - FNCE 118 & FNCE 128 - Levered Returns and GP-LP Waterfalls - Shared Master.pptx", "question_slide": 127, "answer_slides": [ 128 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-s004", "canonical_id": "re-w09-s004", "bank": "re", "week": 9, "title": "Practice", "prompt": "An investor buys shares of a publicly traded industrial REIT and, separately, a direct stake in a private apartment syndication. Into which quadrants do these fall?", "fingerprint": "de400104f0a8c3396a71f54fb87efda8d8c1e36e8796944030ffc9cdd1adbf7f", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w09-s004", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 4, "answer_slides": [ 5 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-s009", "canonical_id": "re-w09-s009", "bank": "re", "week": 9, "title": "Practice", "prompt": "A landlord owns a building with triple-net (NNN) leases. Insurance premiums rise 40% in one year. How does this structure affect the landlord's exposure to insurance-cost inflation? Assume the full insurance increase is recoverable and collected, with no lease cap, exclusion, or base-rent adjustment.", "fingerprint": "7bde670815b745269a7b9d4b93e067470ff834840af9825effc3f3c21cd6d705", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w09-s009", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 9, "answer_slides": [ 10 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x14", "canonical_id": "re-w09-x14", "bank": "re", "week": 9, "title": "Partially hedged floating-rate debt shock", "prompt": "A property has $7,000,000 of interest-only floating-rate debt. A rate swap fixes the index component on $4,000,000 of that debt. The reference index rises by 1.75 percentage points for the entire coming year, while the loan spread, principal balances, and swap notional remain unchanged. Assume the swap fully offsets the index change on its notional. What additional annual net interest expense results? Round to the nearest dollar.", "fingerprint": "e63de332b84cfc280d37796a05b93a3e6288e738cf6f74debc32cb1b712a9c42", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-x14", "locations": [] }, { "id": "re-w09-s013", "canonical_id": "re-w09-s013", "bank": "re", "week": 9, "title": "Practice", "prompt": "A property has an existing fixed-rate mortgage. Treasury yields increase by one percentage point. The tenant leases and expected operating cash flows are unchanged, but the appraiser has not yet obtained new transaction evidence.\nWhich conclusion is best supported?", "fingerprint": "73bd70ccf06e6a186949e36f80846367fef97349268cf1e9f02e1909ea8d7700", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-s013", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 13, "answer_slides": [ 14 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x08", "canonical_id": "re-w09-x08", "bank": "re", "week": 9, "title": "Combined NOI and cap-rate stress on equity", "prompt": "A property has $600,000 of NOI and is valued at a 6.00% cap rate. Its interest-only debt balance is $6,500,000. In a downside scenario, NOI falls 10.00% and the cap rate rises to 7.00%; debt remains unchanged. Ignore selling costs and interim distributions. What percentage of the original equity value is lost? Round to two decimal places.", "fingerprint": "03bc0213ecb18ff0f2aa710c4aa5a3214807e0854cdae449833dd575f53c4e88", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-x08", "locations": [] }, { "id": "re-w09-s016", "canonical_id": "re-w09-s016", "bank": "re", "week": 9, "title": "Practice", "prompt": "A property has $600,000 of annual forward NOI and is initially valued at a 5% cap rate. Its mortgage balance is $7,200,000.\nThe market cap rate rises to 6%, while NOI and the loan balance remain unchanged. There are no operating distributions, amortization, or transaction costs during the repricing.\nWhat percentage of the original equity value is lost, rounded to two decimal places?", "fingerprint": "01b9e65f867c2956758aea55e1441afa50662cd5848facd661c1893dacb9be20", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-s016", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 16, "answer_slides": [ 17 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x12", "canonical_id": "re-w09-x12", "bank": "re", "week": 9, "title": "Expected uninsured loss from discrete events", "prompt": "An industrial property faces mutually exclusive annual loss scenarios: no loss with 70% probability, a $200,000 loss with 20% probability, and an $800,000 loss with 10% probability. Insurance pays 80% of each loss above a $100,000 per-event deductible; there is no payment for the deductible itself. Ignore premiums and any policy limit. What is the expected annual loss retained by the owner? Round to the nearest dollar.", "fingerprint": "f519eb35e889629980c8345262017dde45bcf44fb79f456b1442d4bde9f1f47b", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-x12", "locations": [] }, { "id": "re-w09-x01", "canonical_id": "re-w09-x01", "bank": "re", "week": 9, "title": "Probability-weighted property return", "prompt": "A property requires $4,000,000 of equity today. After one year, total equity cash received, including operating distributions and sale proceeds, will be $3,400,000 with 20% probability, $4,520,000 with 55% probability, or $5,080,000 with 25% probability. These scenarios are exhaustive. What is the probability-weighted one-year equity return? Round to two decimal places.", "fingerprint": "b3ee10bda65bee74b485d3ce53c4d0b30f6afbe87960d4fc0d9d60507ef6088f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-x01", "locations": [] }, { "id": "re-w09-s020", "canonical_id": "re-w09-s020", "bank": "re", "week": 9, "title": "Practice", "prompt": "A $1,000,000 property-equity investment has no interim distributions and will be liquidated in one year. Net cash received by the investor, including returned capital, is forecast as follows:\nThese outcomes are mutually exclusive and exhaustive. There are no additional contributions. What is the probability-weighted one-year total return?", "fingerprint": "69feb93dcadb6161fd9b60584d242e66f6bde86ff374780a722b2c1635ed123c", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-s020", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 20, "answer_slides": [ 21 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x02", "canonical_id": "re-w09-x02", "bank": "re", "week": 9, "title": "Expected NPV of dated scenario cash flows", "prompt": "An all-cash property investment costs $3,600,000 today. A 30%-probability downside scenario pays $160,000 at Year 1 and $3,500,000 at Year 2, including sale proceeds. A 70%-probability base scenario pays $280,000 and $4,300,000 on the same dates. Both scenarios use a 10.00% annual discount rate. What is the probability-weighted NPV today? Round to the nearest $100.", "fingerprint": "c0a458a3090ca057b98c9d30c2a5d805cda91f26b3d7713e9335eb7b38dfdf4d", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-x02", "locations": [] }, { "id": "re-w09-s023", "canonical_id": "re-w09-s023", "bank": "re", "week": 9, "title": "Practice", "prompt": "An investor pays $1,000,000 today for a two-year property investment. There is no Year 1 distribution and no later capital contribution.\nThe investment has two equally likely outcomes. Total net cash to equity at the end of Year 2 is $810,000 in the downside or $1,690,000 in the upside. These amounts include the final sale and return of capital.\nUse a 10% annual equity discount rate for both scenarios. What is the probability-weighted NPV today, rounded to the nearest dollar?", "fingerprint": "d8f1016099610cf3994cacd35524ef076cb49883b63d76512b2f556870b394ec", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-s023", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 23, "answer_slides": [ 24 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x09", "canonical_id": "re-w09-x09", "bank": "re", "week": 9, "title": "Recovery after an equity loss", "prompt": "An investor’s property equity falls from $2,400,000 to $1,560,000 after a refinancing shortfall and valuation decline. No distributions or further contributions occur. What percentage gain on the remaining equity is required to restore its original $2,400,000 value? Round to two decimal places.", "fingerprint": "fa68dbe63bbe88b70076139b305f9559cb8566f0ed37ea61c78a71200a7bd81a", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-x09", "locations": [] }, { "id": "re-w09-s026", "canonical_id": "re-w09-s026", "bank": "re", "week": 9, "title": "Practice", "prompt": "An investor suffers a 50% loss of equity on a deal. What return is needed on the remaining capital just to return to the original principal amount, and what does this imply?", "fingerprint": "6806d32e87ff47479e415c799f4731de88eb4fbff58a8b9439d1c17271b70667", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "re-w09-s026", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 26, "answer_slides": [ 27 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x10", "canonical_id": "re-w09-x10", "bank": "re", "week": 9, "title": "Refinance proceeds under simultaneous stress", "prompt": "At maturity, a property’s underwritten NOI is $495,000 and its appraised value is $7,200,000. A refinancing lender requires no more than 60.00% LTV, at least 1.30x DSCR, an 8.50% annual mortgage constant, and at least 11.00% debt yield. A 1.00% origination fee is withheld from the new loan. The existing payoff is $4,600,000 and there are no other costs or reserves. What cash shortfall must the owner fund? Round to the nearest dollar.", "fingerprint": "7626d6707a0ed8d942a5b44e011c3fe174b4a940c94e4e5ca3459c754793d1d1", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-x10", "locations": [] }, { "id": "re-w09-x11", "canonical_id": "re-w09-x11", "bank": "re", "week": 9, "title": "Cash runway during a leasing shortfall", "prompt": "A property has $420,000 of unrestricted cash. The owner must immediately pay a $96,000 uninsured repair bill and retain a $60,000 minimum cash buffer. For the next several months, cash available from operations before debt service will be $28,000 per month while debt service is $72,000 per month. Assume no other cash movements. How many complete months of this shortfall can be funded before the required buffer would be breached? Round to the nearest whole unit.", "fingerprint": "354b99f1cacdd8ef414552d96bef9fdd39875bb38a83706851a4da37777380a3", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-x11", "locations": [] }, { "id": "re-w09-s029", "canonical_id": "re-w09-s029", "bank": "re", "week": 9, "title": "Practice", "prompt": "A mortgage with a $5,000,000 payoff matures today. Under the refinance stress case, the property is worth $6,800,000 and has annual NOI of $600,000.\nThe new lender requires no more than 70% LTV, at least 1.25x DSCR, and at least 10% debt yield. Annual debt service equals 9% of the new loan. A 2% fee is withheld from its face amount.\nThe owner has $150,000 of unrestricted cash available for closing. There are no other costs or reserves. What additional cash must the owner contribute to close?", "fingerprint": "a5d30bdb12b35e0ef9cf5ad8e70083c5b330faaf5de2b016c31057141fe36075", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-s029", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 29, "answer_slides": [ 30 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x15", "canonical_id": "re-w09-x15", "bank": "re", "week": 9, "title": "Cash reserve required to survive a downside year", "prompt": "In a downside year, a property is forecast to generate $490,000 of NOI. It must pay $560,000 of debt service, $120,000 of required capital work, and a separate $45,000 insurance deductible. The owner wants at least $80,000 of cash remaining at year-end. Assume no other cash flows and no available financing. What minimum cash reserve must be held at the start of the year? Round to the nearest dollar.", "fingerprint": "b22270602e5c3b36f8d592e951762422bf06e39114f6d9f6b0d2a2578a28de63", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-x15", "locations": [] }, { "id": "re-w09-s032", "canonical_id": "re-w09-s032", "bank": "re", "week": 9, "title": "Practice", "prompt": "A property is forecast to cover annual debt service, but a tenant reimbursement will arrive three months after a required roof payment. The property has no unrestricted cash. A reserve account may be used only for property taxes, and the sponsor's wealth is mostly in other illiquid buildings.\nWhich response most directly resolves the immediate liquidity risk?", "fingerprint": "9b5844cec35c7c719bf3bd8cc649a64105086f2a67cf22cb59311bded56ae01b", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-s032", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x03", "canonical_id": "re-w09-x03", "bank": "re", "week": 9, "title": "Portfolio return with different equity weights", "prompt": "A real estate portfolio begins the year with $3,000,000 of equity in apartments, $2,000,000 in industrial property, and $1,000,000 in retail. Expected one-year total equity returns are 9.00%, 12.00%, and 6.00%, respectively. There are no capital transfers during the year. What is the portfolio’s expected total equity return? Round to two decimal places.", "fingerprint": "fd950412828ad7e50e1d13b8fb622cedd43216e27a3195b4aa13a375e98e157a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-x03", "locations": [] }, { "id": "re-w09-s035", "canonical_id": "re-w09-s035", "bank": "re", "week": 9, "title": "Practice", "prompt": "A real estate equity portfolio begins the year with $3,000,000 invested in industrial properties and $2,000,000 invested in multifamily properties. The expected one-year total equity returns are 9% and 6%, respectively, on the same fee and tax basis.\nThere are no outside contributions, withdrawals, or rebalancing during the year. What is the expected portfolio return?", "fingerprint": "a2de4af090c2632c5bb62a3c13ec78b7d4957d8b09ab47b1872871a6487dbde5", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-s035", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 35, "answer_slides": [ 36 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x04", "canonical_id": "re-w09-x04", "bank": "re", "week": 9, "title": "Portfolio volatility with positive correlation", "prompt": "A portfolio allocates 60% of equity to Property Fund A and 40% to Property Fund B. Annual return standard deviations are 18.00% and 12.00%, respectively; return correlation is 0.25. Treat these inputs as measured consistently over the same period. What is the portfolio’s annual return standard deviation? Round to two decimal places.", "fingerprint": "6589aee98425f889801b2062a4c9ec67b2c639163a54294878481788ea7f0536", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-x04", "locations": [] }, { "id": "re-w09-x05", "canonical_id": "re-w09-x05", "bank": "re", "week": 9, "title": "Volatility reduction from lower correlation", "prompt": "A portfolio places half its equity in each of two property funds, both with annual return standard deviation of 20.00%. An alternative fund pairing would reduce correlation from 0.80 to 0.20 without changing the weights or individual volatilities. By how many percentage points would portfolio standard deviation decrease? Round to two decimal places.", "fingerprint": "421a45d019d2c1a27d649131dceecaaffba974c13e6b4daa07b50800ce3eb234", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-x05", "locations": [] }, { "id": "re-w09-s038", "canonical_id": "re-w09-s038", "bank": "re", "week": 9, "title": "Practice", "prompt": "A portfolio invests 50% in an industrial REIT and 50% in a multifamily REIT. Their annual total-return standard deviations are 10% and 20%, respectively. Assume their return correlation is zero and the weights remain fixed for this calculation.\nWhat is the portfolio's annual standard deviation, rounded to two decimal places?", "fingerprint": "1758dd128575a69fc48a93c48a15c00d5288a47990437c66cb813a345428c0e9", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-s038", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 38, "answer_slides": [ 39 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x13", "canonical_id": "re-w09-x13", "bank": "re", "week": 9, "title": "Concentration by common demand driver", "prompt": "A property portfolio has $2,000,000 of NOI. An office building generates $480,000 entirely from a technology tenant. An apartment building generates $720,000, and 40% of its NOI is attributed to residents employed by that same technology company. Other properties have no exposure to that employer. For this scenario, assume employer-related NOI falls 30% and all other NOI is unchanged. What percentage does total portfolio NOI decline? Round to two decimal places.", "fingerprint": "b9ddd64a4043d6969553c6f36bb216702aa0c316d316a84a435f39889a46196a", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w09-x13", "locations": [] }, { "id": "re-w09-s041", "canonical_id": "re-w09-s041", "bank": "re", "week": 9, "title": "Practice", "prompt": "A fund owns three industrial properties in three cities, all heavily dependent on the same logistics tenants. It can add either another industrial property or a multifamily property at the same portfolio weight.\nThe alternatives have equal expected returns, standalone volatility, leverage, and liquidity. Supported estimates show that the multifamily property's return has lower covariance with the existing portfolio.\nWhich conclusion is best supported by those assumptions?", "fingerprint": "2ddd93540ba3d0d1e09e3194a948e446979e2c8f00922ba552c43b998d11d7ea", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-s041", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 41, "answer_slides": [ 42 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x06", "canonical_id": "re-w09-x06", "bank": "re", "week": 9, "title": "Portfolio beta and CAPM required return", "prompt": "A listed real estate equity portfolio allocates 40% to a residential REIT with beta 0.75, 35% to an industrial REIT with beta 1.10, and 25% to an office REIT with beta 1.35. The risk-free rate is 4.00% and expected market return is 10.00%. Using CAPM, what annual return is required for the portfolio? Round to two decimal places.", "fingerprint": "fc02c5c7cfb1ae8c7692428a60e5671bba7b31c272e8098d729d727b64e111b2", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-x06", "locations": [] }, { "id": "re-w09-s046", "canonical_id": "re-w09-s046", "bank": "re", "week": 9, "title": "Practice", "prompt": "A listed equity REIT has an equity beta of 1.20. Use a 4% risk-free rate and a 5% market risk premium to estimate its required annual equity return.\nThe investor expects one $2 dividend and a $42 share sale, both at the end of one year. No other cash flows, taxes, or transaction costs apply.\nWhat price today is consistent with that required return?", "fingerprint": "ff808291ec554362564d905dbc415da07ccb530ec4a76ab10894839dc0d6a354", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-s046", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 46, "answer_slides": [ 47 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-x07", "canonical_id": "re-w09-x07", "bank": "re", "week": 9, "title": "Sharpe ratio comparison", "prompt": "Property Fund A has an expected annual total return of 11.00% and standard deviation of 16.00%. Property Fund B has an expected return of 9.50% and standard deviation of 10.00%. The risk-free rate is 4.00%, and all measures use comparable annual observations. By how much does B’s Sharpe ratio exceed A’s? Round to two decimal places.", "fingerprint": "6365a9da8fc7641ae82e9f1a877431cc006d2836badce1723b1332284863f20e", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-x07", "locations": [] }, { "id": "re-w09-s049", "canonical_id": "re-w09-s049", "bank": "re", "week": 9, "title": "Practice", "prompt": "Two listed real estate funds report annual total returns and annual standard deviations on the same net-fee basis:\nThe matching annual risk-free rate is 3%. What are the respective Sharpe ratios for A and B, rounded to two decimal places?", "fingerprint": "256b359475f22a6f460d668e4dc2fab3cacb683044b10b7cdc526939d35ffc2c", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-s049", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 49, "answer_slides": [ 50 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w09-s053", "canonical_id": "re-w09-s053", "bank": "re", "week": 9, "title": "Practice", "prompt": "An investor is offered a deal whose probability-weighted expected return equals the required return for a much lower-risk core asset. In the Bear scenario, the deal’s equity becomes $0. What should the risk-adjusted decision framework conclude?", "fingerprint": "3150fe6143317d72a4e62923e8f2127c5f62b706fdd66c21fd1f70ceeecc802b", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w09-s053", "locations": [ { "deck_id": "1KKKSho8PF5SWUGNN1-hKWRxZk5cKcL66", "deck_name": "Week 9 - FNCE 118 & FNCE 128 - Risk, Scenarios, and Portfolio Thinking - Shared Master.pptx", "question_slide": 53, "answer_slides": [ 54 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w10-s007", "canonical_id": "re-w10-s007", "bank": "re", "week": 10, "title": "Practice", "prompt": "An investment committee is reviewing an industrial acquisition offered at $5.5 million. Verified leases and operating costs support a value near $5.1 million. Adjusted sales indicate $5.0–$5.3 million. The broker's higher forecast relies on unsigned leases at premium rents.\nAt $5.1 million, the proposed financing passes the committee's stress tests and leaves its required reserves funded. Environmental and title reviews remain incomplete. The committee may authorize a conditional offer without authorizing closing.\nWhich recommendation is best supported?", "fingerprint": "4556ca325e170501a90a28c03b56201692a50d078f7ff51751e33c796465d904", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-s007", "locations": [ { "deck_id": "18vzOzk0JF0Qkw0kGfhphcJzrwtJpi9OC", "deck_name": "Week 10 - FNCE 118 & FNCE 128 - Investment Committee Recommendations - Shared Master.pptx", "question_slide": 7, "answer_slides": [ 8 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w10-x06", "canonical_id": "re-w10-x06", "bank": "re", "week": 10, "title": "Decision memo: realized equity return", "prompt": "A one-year property investment requires a $6,000,000 purchase price and $120,000 of acquisition costs. An interest-only loan funds $3,900,000 at 7.00% annually. Property cash flow before debt is $480,000 for the year. The year-end sale price is $6,300,000 with selling costs of 2.00%; the loan is repaid at sale. What one-year total return is earned on the initial equity contribution? Round to two decimal places.", "fingerprint": "982522ad5ec1eab1c975fff80814653d024b82cf972b711c66367065c491865e", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-x06", "locations": [] }, { "id": "re-w10-x04", "canonical_id": "re-w10-x04", "bank": "re", "week": 10, "title": "Value of due diligence before a binding commitment", "prompt": "Before buying a warehouse, an investor can pay $45,000 today for a study that perfectly identifies whether a costly structural defect exists. There is a 20% probability of a defect. Buying without the study yields NPV of $600,000 if sound and −$1,400,000 if defective. With the study, the investor buys only if sound and can walk away from a defective property at no further cost. All NPVs are measured today and exclude the study fee. What is the incremental expected NPV of commissioning the study instead of buying without it? Round to the nearest dollar.", "fingerprint": "62445440be656e4d6e10bff91748ab9cda8058973cdedd18c7964d0501879c4d", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-x04", "locations": [] }, { "id": "re-w10-s022", "canonical_id": "re-w10-s022", "bank": "re", "week": 10, "title": "Practice", "prompt": "A roof inspection identifies work that was missing from an acquisition budget. A qualified contractor provides a firm $100,000 repair estimate, and the seller offers an $80,000 price reduction. The buyer has $30,000 of uncommitted cash beyond all required reserves.\nThe engineer reports no related structural defect. A revised forecast includes the repair timing and temporary disruption and still meets the investment committee's return requirement. All other diligence conditions are satisfied.\nWhich response is most appropriate on these facts?", "fingerprint": "1f538f17cd50a8e4bf2cc4f8c62c5d7ac3b1178b02d1b024963ded03d76dc2e0", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-s022", "locations": [ { "deck_id": "18vzOzk0JF0Qkw0kGfhphcJzrwtJpi9OC", "deck_name": "Week 10 - FNCE 118 & FNCE 128 - Investment Committee Recommendations - Shared Master.pptx", "question_slide": 22, "answer_slides": [ 23 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w10-x03", "canonical_id": "re-w10-x03", "bank": "re", "week": 10, "title": "Sunk capital and the decision to retain a property", "prompt": "An owner has already spent $700,000 renovating a property. It can now sell for $5,200,000 net of all costs, or hold for two years. Holding requires $180,000 of new work today, then produces $400,000 in Year 1 and $420,000 plus $5,850,000 of net sale proceeds in Year 2. Ignore financing and taxes. At a 10.00% required annual return, what is the incremental NPV of holding rather than selling? Round to the nearest $100.", "fingerprint": "aa763252e7e0f05d00d441d084dbe65826959b0763c6bdb66184f526dea04e04", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-x03", "locations": [] }, { "id": "re-w10-s033", "canonical_id": "re-w10-s033", "bank": "re", "week": 10, "title": "Practice", "prompt": "A partnership invested $2.4 million of equity in an office property, including renovations already completed. A sale today would release $1.9 million after all selling costs, taxes, and debt repayment.\nThe managing partner recommends holding solely until the property can return the original $2.4 million. The proposed hold would require additional leasing work, and the partnership has not compared future net receipts and risk with alternative uses of the $1.9 million available today.\nWhich analysis should guide the decision?", "fingerprint": "014202681f08fb0af3410fb1e1f723af0d855484279184392e1fd8ccdde8dd59", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w10-s033", "locations": [ { "deck_id": "18vzOzk0JF0Qkw0kGfhphcJzrwtJpi9OC", "deck_name": "Week 10 - FNCE 118 & FNCE 128 - Investment Committee Recommendations - Shared Master.pptx", "question_slide": 33, "answer_slides": [ 34 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w10-x09", "canonical_id": "re-w10-x09", "bank": "re", "week": 10, "title": "Quantifying the cost of an optimistic terminal assumption", "prompt": "Two versions of an acquisition memo use identical operating cash flows and a four-year holding period. Both forecast $780,000 of Year 5 NOI, a 10.00% annual discount rate, and 2.00% selling costs. The first uses a 6.00% exit cap rate; the revised memo uses 6.75%. How much lower is the revised value today solely because of that change? Round to the nearest $100.", "fingerprint": "3588b80b1133d1a9998b6297b062d943eeb4c4a1af7c043efb18a15f1cf7d449", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-x09", "locations": [] }, { "id": "re-w10-x05", "canonical_id": "re-w10-x05", "bank": "re", "week": 10, "title": "Expected NPV does not eliminate loss scenarios", "prompt": "A proposed acquisition has mutually exclusive NPVs of −$900,000, $300,000, and $1,200,000 under downside, base, and upside scenarios. Their probabilities are 30%, 50%, and 20%. The committee requires a contingency contribution today equal to 10% of the downside NPV loss; the contingency is an additional nonrecoverable cost not included in any scenario NPV. What is expected NPV after this required contribution? Round to the nearest dollar.", "fingerprint": "8773e9804f1f4b8c09060fe23131aa0ed149c904abef7c17ac57d464d48e8b05", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Risk and required returns", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-x05", "locations": [] }, { "id": "re-w10-x07", "canonical_id": "re-w10-x07", "bank": "re", "week": 10, "title": "Risk mitigation budget and residual cash exposure", "prompt": "A committee identifies a $360,000 potential cash need for roof repairs and a separate $220,000 potential need for tenant improvements. A fixed-price roof contract reduces the roof amount to $295,000. A tenant’s nonrefundable $70,000 improvement contribution reduces the owner’s tenant-improvement obligation dollar for dollar. The owner has already reserved $180,000 for these two items. If both needs occur, what additional cash must be set aside? Round to the nearest dollar.", "fingerprint": "bfd93eb4cb7785c90ef3b5ac45ba28acb04d43c4095f67fae45707eaa69b56a8", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w10-x07", "locations": [] }, { "id": "re-w10-s040", "canonical_id": "re-w10-s040", "bank": "re", "week": 10, "title": "Practice", "prompt": "A property loan matures in Month 36. The business plan assumes refinancing at that date. The existing interest-rate cap expires in Month 24, and no replacement cap or loan extension has been committed.\nA downside case shows lower refinancing proceeds and a possible cash shortfall at maturity. The investment memo lists the current cap as the complete mitigation for refinancing risk.\nWhich revision would best support the committee's decision?", "fingerprint": "ceb21f25455386c608874d5d7444346525108cbeefca9c1066dcecc9b929c5d9", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-s040", "locations": [ { "deck_id": "18vzOzk0JF0Qkw0kGfhphcJzrwtJpi9OC", "deck_name": "Week 10 - FNCE 118 & FNCE 128 - Investment Committee Recommendations - Shared Master.pptx", "question_slide": 40, "answer_slides": [ 41 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w10-x01", "canonical_id": "re-w10-x01", "bank": "re", "week": 10, "title": "Investment committee: binding cash and value limits", "prompt": "An investment committee authorizes an all-cash acquisition only if NPV is nonnegative and at least $400,000 of its $8,100,000 cash remains unspent. Present value of the property’s future cash receipts is $7,900,000. Closing costs are 2.00% of price, and $260,000 of immediate repairs must be funded separately. What maximum property price meets both requirements? Round to the nearest $100.", "fingerprint": "af7ee0c912d971d6f574ed35c6412b0e708a26aedd6081ceb22d51eb05ad2878", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-x01", "locations": [] }, { "id": "re-w10-x02", "canonical_id": "re-w10-x02", "bank": "re", "week": 10, "title": "Funding gap after a negotiated price reduction", "prompt": "A committee approves a property at $12,000,000 with debt equal to 65.00% of price. Fixed closing and immediate improvement costs total $600,000. The seller then reduces price to $11,400,000; the lender still funds only 65.00% of the actual price and the $600,000 of other costs does not change. By how much does required equity decrease? Round to the nearest dollar.", "fingerprint": "c81fc2dd5f1b6a1d711c3e77165d860ea3072b10711f5057ed71eab190108531", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w10-x02", "locations": [] }, { "id": "re-w10-x08", "canonical_id": "re-w10-x08", "bank": "re", "week": 10, "title": "Break-even NOI for an investment committee hurdle", "prompt": "A committee is reviewing a stabilized property priced at $8,000,000. All acquisition costs are funded separately and excluded from this hurdle calculation. An interest-only loan equals 60.00% of price and costs 6.50% annually. Annual capital spending and reserve deposits total $90,000 below NOI. The committee requires a 9.00% annual cash-on-cash return on the 40.00% purchase-price equity. What minimum annual NOI meets that hurdle? Round to the nearest dollar.", "fingerprint": "f9062ed9929dc777a79ab2aa7cb0784c35bdb58b7241ae98f854186ad9152091", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Investment returns and leverage", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "re-w10-x08", "locations": [] }, { "id": "re-w10-s045", "canonical_id": "re-w10-s045", "bank": "re", "week": 10, "title": "Practice", "prompt": "An investment committee is evaluating an office acquisition with a two-year hold. Forecast NOI is $600,000 in Year 1 and $660,000 in Year 2. Capital and leasing expenditures are $50,000 and $60,000, respectively. All annual cash flows occur at year-end.\nThe property sells at the end of Year 2 using Year 3 NOI of $720,000 and an 8.00% exit cap rate. Selling costs equal 2.00% of gross sale value. Acquisition closing costs are 2.00% of purchase price, and immediate improvements cost another $150,000 at closing.\nAdjusted comparable sales suggest $7.7–$8.1 million. The seller asks $8.25 million. There is no debt or tax. What maximum purchase price produces zero NPV at a 10.00% unlevered annual required return, rounded to the nearest $10,000?", "fingerprint": "fb535ac56827fc7b3b991e451abb5e678b110b05925144f8fbd59b9a1a6c7cb2", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-s045", "locations": [ { "deck_id": "18vzOzk0JF0Qkw0kGfhphcJzrwtJpi9OC", "deck_name": "Week 10 - FNCE 118 & FNCE 128 - Investment Committee Recommendations - Shared Master.pptx", "question_slide": 45, "answer_slides": [ 46 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "re-w10-x10", "canonical_id": "re-w10-x10", "bank": "re", "week": 10, "title": "Maximum concession justified by incremental NPV", "prompt": "A property buyer has already negotiated a base transaction. The seller offers a separate adjacent parcel for an additional $420,000 payable today. Acquiring it would add $35,000 of net property cash at each of the next three year-ends and $480,000 of net sale proceeds at the end of Year 3. These amounts include all incremental operating and selling costs; there are no other benefits or costs. At a 12.00% required annual return, what is the incremental NPV of accepting the parcel at the offered price? Round to the nearest $100.", "fingerprint": "ce5f27575a88aea0933f49c45dcf72bfc1f49ab15f5022f1ab834a791264ae52", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "re-w10-x10", "locations": [] }, { "id": "W1-S006", "canonical_id": "W1-S006", "bank": "ef", "week": 1, "title": "Founder position", "prompt": "A founder has deep experience in her target industry and enough investable capital for the business she plans. She wants flexibility and fulfilling work, with no current ambition to scale or sell. How is she positioned?", "fingerprint": "bf3151d25dc3095ab0537917cbc217e8973ce7ffa1bb3ea98887b2a36b58396f", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S006", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 6, "answer_slides": [ 7 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S014", "canonical_id": "W1-S014", "bank": "ef", "week": 1, "title": "A control tradeoff", "prompt": "A founder is offered capital that could accelerate growth. The deal requires shared board control and joint approval of major decisions. She declines because retaining authority matters more to her than the potential financial gain. Which framework most directly explains her choice?", "fingerprint": "14148d8ceb45c5f75e62b1fe6b3cb46e29dfe726c8b9c41815ca63c65d62e294", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S014", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 14, "answer_slides": [ 15 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S016", "canonical_id": "W1-S016", "bank": "ef", "week": 1, "title": "Rich versus King", "prompt": "A founder is choosing between two equity investment offers. Each provides $1.8 million and leaves her with 65% economic ownership of the company.\n\nAngel offer: The founder appoints two of the company's three directors.\n\nVenture-fund offer: The fund appoints two of the three directors and can replace the CEO by a majority board vote. The fund also offers distribution relationships that could increase the company's eventual value.\n\nThe founder chooses the angel offer. She explains that keeping decision authority matters more to her than the additional financial upside the fund might provide.\n\nWhich framework best explains her decision?", "fingerprint": "258eba4b696d6a9ac10ad71086cf260d2184d8c05e0bc0144b1091a649f90524", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S016", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 16, "answer_slides": [ 17 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S020", "canonical_id": "W1-S020", "bank": "ef", "week": 1, "title": "Reasoning from means", "prompt": "A founder begins by listing her capabilities, relevant knowledge, and contacts. She explores what those resources make possible and limits the next experiment to a loss she can absorb. Which concept best fits?", "fingerprint": "580ebad75695985093355a94b680fe9fd0fec357cd3499451ede7d5f43896831", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S020", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 20, "answer_slides": [ 21 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S022", "canonical_id": "W1-S022", "bank": "ef", "week": 1, "title": "Effectuation and causation", "prompt": "Two founders are developing software for independent clinics. They take different approaches to deciding what to build:\n\nMira: She starts with her scheduling expertise, relationships with three clinic owners, and $4,000 she can afford to lose. Commitments from pilot customers help her decide which product to build and which clinics to serve first.\n\nJon: He starts with a goal of serving 50 clinics within one year. He estimates the resources needed, then develops a hiring and financing plan to reach that goal.\n\nBoth founders interview customers, prepare budgets, and revise their assumptions. An industry report forecasts 12% annual market growth.\n\nWhich explanation best distinguishes the decision-making approach each founder is using?", "fingerprint": "05ee8b4aa4217c366543235b92d0b4d48e1c6043cd2a02a5c387563222cf78eb", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S022", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 22, "answer_slides": [ 23 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S024", "canonical_id": "W1-S024", "bank": "ef", "week": 1, "title": "Affordable loss", "prompt": "A founder sets aside money to test a tutoring platform. Before beginning, she has $42,000 of personal savings and reserves $30,000 for household needs. She limits her total loss on the experiment to $12,000, including money already spent.\n\nHer commitments are as follows:\n\nShe has already spent $2,400, which she cannot recover.\n\nThe next pilot requires a nonrefundable $6,800 vendor payment.\n\nIf the pilot fails, she may also owe a $1,200 termination payment.\n\nA customer has provided a refundable $2,000 deposit, but it must be held separately and cannot fund the experiment. The founder forecasts $60,000 of annual profit if the product succeeds.\n\nWhat is the largest additional nonrefundable marketing commitment she can make without exceeding her loss limit if the pilot fails and the termination payment becomes due?", "fingerprint": "d208ad376b5fe09083be83e64f0b12e70bb7bb6ae8b45e77691cfe25b6a418e8", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W1-S024", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 24, "answer_slides": [ 25 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S028", "canonical_id": "W1-S028", "bank": "ef", "week": 1, "title": "Introversion and the evidence", "prompt": "An introverted founder asks whether her personality could make entrepreneurship harder. Which interpretation best combines the personality studies?", "fingerprint": "ddf494ff074dbb319aecc0daaab4798ad280781083c84c99945deabaa187f1de", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S028", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 28, "answer_slides": [ 29 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S030", "canonical_id": "W1-S030", "bank": "ef", "week": 1, "title": "Personality and observed behavior", "prompt": "An investor evaluates a founder with high conscientiousness and low agreeableness. References describe her as disciplined, receptive to feedback, and effective at resolving disagreements. How should the investor use the assessment?", "fingerprint": "4f4a05f4aea898c391c7085cb979b94c76a12a7d44eccebb9068f37e91e3c1b8", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S030", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 30, "answer_slides": [ 31 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S033", "canonical_id": "W1-S033", "bank": "ef", "week": 1, "title": "Confidence and evidence", "prompt": "A founder treats enthusiastic interviews with four friends as evidence of broad demand. She also believes that her effort can overcome any competitor response. Which response best addresses the two reasoning risks?", "fingerprint": "971dbfa6415a54930a4c11a41ff465b7b2d2a3f2d6af75c3c382831a28bdfa07", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S033", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 33, "answer_slides": [ 34 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S036", "canonical_id": "W1-S036", "bank": "ef", "week": 1, "title": "Different starting resources", "prompt": "Two founders are evaluating the same opportunity. Founder A has ten years of directly relevant experience and 18 months of personal runway. Founder B has no relevant experience and three months of personal runway. Why should their advice differ?", "fingerprint": "e49bfa40288fcbca134e25f4cd60932bd66dcf49347c84b5b2187da540bd58d3", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S036", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 36, "answer_slides": [ 37 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S038", "canonical_id": "W1-S038", "bank": "ef", "week": 1, "title": "Capital without domain expertise", "prompt": "A founder sold her previous company and has ample investable capital. She now enters an industry where she has never worked. Which resource profile and coaching priority fit best?", "fingerprint": "b82810fb557b20ac6cfaef64659c3a87b1e7dfb90a6ed63ea3a671ce48069b3c", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S038", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 38, "answer_slides": [ 39 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S043", "canonical_id": "W1-S043", "bank": "ef", "week": 1, "title": "Funding ahead of expertise", "prompt": "A founder has raised substantial capital, has never worked in the target industry, and wants to scale aggressively. She has not yet tested the key customer assumptions. What should an advisor prioritize?", "fingerprint": "55914064e26722648449d473a701ac4b6c95e64e6162422f45d4d35ed2763b0a", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S043", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 43, "answer_slides": [ 44 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S045", "canonical_id": "W1-S045", "bank": "ef", "week": 1, "title": "One opportunity, different strategies", "prompt": "Alex and Priya are evaluating the same attractive software opportunity. Alex has limited personal capital, deep industry expertise, and wants to retain control. Priya has substantial resources, accepts shared ownership, and wants to build quickly. Which approach best fits these differences?", "fingerprint": "0772f9edbaa6ce424255f31e574259f64f792d3ad620ca6c0cfc038028f20d20", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S045", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 45, "answer_slides": [ 46 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S049", "canonical_id": "W1-S049", "bank": "ef", "week": 1, "title": "Connecting industry networks", "prompt": "A career changer has strong contacts in her old industry. An advisor introduces her to a group in her new industry that rarely interacts with the first. She begins connecting people and sharing relevant ideas across the groups. Which concept explains the potential value of that position?", "fingerprint": "6c8bc41ed16339282e902f58de9ef7460365bd49970438840bd305ed6a00fdbc", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S049", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 49, "answer_slides": [ 50 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S052", "canonical_id": "W1-S052", "bank": "ef", "week": 1, "title": "Different reasons to grow", "prompt": "Two founders have similar capital and expertise, and both want to scale. One emphasizes wealth and competitive success. The other emphasizes advancing a societal cause. Which framework most directly distinguishes those motivations?", "fingerprint": "1c89db69d1ec114ffb34aa02f1ad4d7c1cad0897b2d8dd8a660539e114b62fee", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S052", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 52, "answer_slides": [ 53 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S056", "canonical_id": "W1-S056", "bank": "ef", "week": 1, "title": "The founder as a bottleneck", "prompt": "A founder built the business through personal selling, customization, and direct problem-solving. Demand is now recurring and the team has reached 25 people, but routine decisions stall while waiting for her approval. Which action most directly addresses the stated bottleneck?", "fingerprint": "cf154f1c5c0f3072e90969ebc9970e0f3d499658920b7a37d404de837864017e", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S056", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 56, "answer_slides": [ 57 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S060", "canonical_id": "W1-S060", "bank": "ef", "week": 1, "title": "Darius’s next commitment", "prompt": "Darius knows the product but is new to retail distribution and lacks grocery-buyer contacts. His savings are limited relative to his national ambition. Which next step best addresses these gaps while limiting financial exposure?", "fingerprint": "a934a435257588828b88ef24db6f7bc05a18398865f9846910c61226b05b3687", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S060", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 60, "answer_slides": [ 61 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S063", "canonical_id": "W1-S063", "bank": "ef", "week": 1, "title": "Elena’s investment decision", "prompt": "Elena has deep expertise and adequate capital, but explicitly wants a small business with sustainable income and manageable hours. Compared with Darius, which coaching emphasis best fits her goals?", "fingerprint": "8a5d010ff2592b7b453ef99b2ed4891e129efb2319a733c5ba0c77aa5cd7f383", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S063", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 63, "answer_slides": [ 64 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S065", "canonical_id": "W1-S065", "bank": "ef", "week": 1, "title": "Founder and financing judgment", "prompt": "A founder has deep industry experience and wants to build a national business. Her company has five months of runway under its current plan. Paying customers in its initial region show promising retention, but demand in other regions has not been tested.\n\nShe is considering two alternatives:\n\nFunded expansion: A venture fund offers enough capital for a 16-month expansion plan in exchange for shared board authority.\n\nNarrower operating plan: The company postpones hiring, preserves founder control, and extends runway to nine months. It expects to complete a regional customer-validation milestone in month five.\n\nThe founder values both financial upside and decision authority but has not decided which matters more to her.\n\nWhich analysis would provide the strongest basis for choosing between the two plans?", "fingerprint": "5353ebfe2d3680a5e0b1f1b43a263010110f455ff6f1cc923c3c5f4b9f641f91", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W1-S065", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 65, "answer_slides": [ 66 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S070", "canonical_id": "W1-S070", "bank": "ef", "week": 1, "title": "The CEO role", "prompt": "An investor offers funding and experienced executives who could help build a more valuable company. The agreement would let the board replace the founder as CEO. She rejects it because remaining CEO is her overriding priority. Which explanation fits best?", "fingerprint": "759a0c4780545473ef71fdeef30350024873f49f563b1d72e37c5fd4f524e829", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S070", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 70, "answer_slides": [ 71 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S072", "canonical_id": "W1-S072", "bank": "ef", "week": 1, "title": "Two decision logics", "prompt": "Which statement best distinguishes effectuation from causation?", "fingerprint": "4093ab231b011362360de4816b8ae761d25ca2dc514bfbcf0dce6c5011102b1f", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S072", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 72, "answer_slides": [ 73 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S074", "canonical_id": "W1-S074", "bank": "ef", "week": 1, "title": "An unexpected customer pilot", "prompt": "A founder starts without a fixed business idea. She inventories what she knows, whom she knows, and what she can afford to lose. After several conversations, a potential customer offers to pilot a use case she had not originally considered. Which response best reflects effectual reasoning?", "fingerprint": "06d2df7bb5df482d0f3ece8b7b9e7aaf3e865284dec9cfc323e2874d07d7cb65", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S074", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 74, "answer_slides": [ 75 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S076", "canonical_id": "W1-S076", "bank": "ef", "week": 1, "title": "The affordable-loss limit", "prompt": "A founder is testing a tutoring platform. She has $20,000 in savings, but losing more than $5,000 would compromise her emergency reserve. Customer demand remains uncertain. Which initial decision best follows affordable loss?", "fingerprint": "242217e1fe9fd6462768cf4f45a445f6d87f5e2f5fbe6850e6a597aadc8f533e", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S076", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 76, "answer_slides": [ 77 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S078", "canonical_id": "W1-S078", "bank": "ef", "week": 1, "title": "Profitable firms, different goals", "prompt": "Maya and Jordan run equally profitable consulting firms with similar opportunities. Maya wants to serve about 15 clients, preserve Fridays off, and retain full control. Jordan wants a national firm, significant hiring, and an eventual sale. Which financing approach best fits?", "fingerprint": "a1d01667d21784ab9f12d3cb50b67caed6d2069c42781ec0e4346d35d85ad7a0", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S078", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 78, "answer_slides": [ 79 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S080", "canonical_id": "W1-S080", "bank": "ef", "week": 1, "title": "Scaling and founder transition", "prompt": "A founder succeeds early by personally selling, customizing the product, and solving problems directly.\n\nDemand is now recurring, the team has grown to 25 employees, and most decisions still flow through the founder.\n\nWhat should an advisor emphasize at this stage?", "fingerprint": "ea40b8b038fbc0767b5438d2a33aafe45147291cb920cd182d982c7586753b82", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W1-S080", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 80, "answer_slides": [ 81 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W1-S082", "canonical_id": "W1-S082", "bank": "ef", "week": 1, "title": "Runway, growth, and control", "prompt": "A domain expert wants to build a national company. Her business has four months of runway. An investment offer would extend runway and support hiring, but requires shared governance. She also values control. Which analysis best integrates the course concepts?", "fingerprint": "4d6a01d4d93671b649e682583d282f85e15105b713c0060a821c617507c78f39", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W1-S082", "locations": [ { "deck_id": "1lMPygWHidmrPyNpmqBk-OiygwZXe6_NC", "deck_name": "2. Week 1 - FIN143 - Founder Archetype Matrix - SCU.pptx", "question_slide": 82, "answer_slides": [ 83 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S010", "canonical_id": "W2-S010", "bank": "ef", "week": 2, "title": "Evidence of product–market fit", "prompt": "Which observation provides the strongest evidence that a recurring-revenue startup has moved beyond early interest toward product–market fit?", "fingerprint": "97dff1112e7de987793092df5b21668a15c1efb9e61479e08781634b9c932d81", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S010", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 10, "answer_slides": [ 11 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S012", "canonical_id": "W2-S012", "bank": "ef", "week": 2, "title": "Product-market fit", "prompt": "Two teams sell the same type of monthly workflow software to comparable small businesses. Both have operated for nine months.\n\nAn investor wants to assess whether customers find enough value in the product to continue paying for it.\n\nWhich conclusion is best supported by the evidence?\n\n| Evidence | Team North | Team South |\n| --- | --- | --- |\n| Initial paying customers | 400 accounts at heavily discounted prices | 90 accounts at the intended price |\n| Customers still paying after three monthly renewal opportunities | 60 | 72 |\n| Other evidence | A 2,400-person waitlist and much larger social-media reach | Sustained product use and unsolicited referrals that brought in paying customers |", "fingerprint": "7622b2d6bfb869b950acbd88a35107e3af9343f6bf718879847f76176e7a7d93", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W2-S012", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 12, "answer_slides": [ 13 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S016", "canonical_id": "W2-S016", "bank": "ef", "week": 2, "title": "Identifying the revenue model", "prompt": "A platform acts as an agent connecting buyers and providers. It earns a percentage of completed booking value, and major transaction costs include payment processing and insurance. Which revenue-model archetype best fits?", "fingerprint": "6bc45e0034106d410f28ec0aaf760acd4718a48c265b4fe0cedca9272db82162", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S016", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 16, "answer_slides": [ 17 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S021", "canonical_id": "W2-S021", "bank": "ef", "week": 2, "title": "Revenue growth and cost structure", "prompt": "A software company and a consulting firm each grow revenue 50%. Software supports much of the extra volume without proportional hiring; consulting adds professionals roughly with new client work. With comparable remaining cost behavior, which concept best explains the difference?", "fingerprint": "71a639d5abd0bffa82cb2dfcb13b7c9269d4b9b146ccaa6ba634be3b98203576", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S021", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 21, "answer_slides": [ 22 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S023", "canonical_id": "W2-S023", "bank": "ef", "week": 2, "title": "Operating leverage", "prompt": "Atlas Software and Beacon Consulting each report quarterly revenue of $1.50 million, operating profit of $150,000, and cash of $800,000. Their cost structures differ:\n\n| Cost | Atlas Software | Beacon Consulting |\n| --- | --- | --- |\n| Variable operating costs as a percentage of revenue | 20% | 60% |\n| Fixed operating costs per quarter | $1.05 million | $450,000 |\n\nNext quarter, revenue falls by 10% at both companies. Prices, sales mix, variable-cost percentages, and total fixed costs remain unchanged.\n\nWhat operating profit will each company report, and which company's operating profit is more sensitive to the revenue decline?", "fingerprint": "8215a130d09b2f046bab09f3dd88c5e9a53e5aeae8dc8c34f721eb267a5184b7", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W2-S023", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 23, "answer_slides": [ 24 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S026", "canonical_id": "W2-S026", "bank": "ef", "week": 2, "title": "A founder’s pricing method", "prompt": "A founder prices a differentiated product using fully loaded cost plus a 25% markup. The product solves an expensive customer problem, and customers may pay substantially more. Which pricing approach is being used, and what is its main limitation?", "fingerprint": "73620673c005bb9d7f961a6d7a6e40063c3be2dff42481acdafa60513a5f300b", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S026", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 26, "answer_slides": [ 27 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S031", "canonical_id": "W2-S031", "bank": "ef", "week": 2, "title": "Pricing and contribution", "prompt": "A company currently sells 1,000 units per month at $75 each. It set that price using a 25% markup on a fully loaded unit cost of $60, consisting of $42 in variable cost and $18 in allocated fixed overhead.\n\nManagement is comparing three pricing plans:\n\n| Plan | Price per unit | Expected monthly sales |\n| --- | --- | --- |\n| Current plan | $75 | 1,000 units |\n| Higher-price plan | $90 | 800 units |\n| Lower-price plan | $68 | 1,250 units |\n\nAll three sales volumes are within existing capacity. Total fixed costs remain unchanged, and variable cost stays at $42 per unit. Customers report saving about $900 annually by using the product.\n\nUsing these sales estimates, which price produces the highest monthly contribution, and how much does contribution change from the current plan?", "fingerprint": "d65b8f7b085194b1201a3fb52b4ff1af60776605a04c2f3936443a8ae85bdcb2", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W2-S031", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 31, "answer_slides": [ 32 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S037", "canonical_id": "W2-S037", "bank": "ef", "week": 2, "title": "Gross margin and the customer relationship", "prompt": "A startup has positive gross margin after delivery costs. Over the expected customer relationship, however, contribution becomes negative after all additional variable sales, marketing, onboarding, and customer-success costs. What does this indicate?", "fingerprint": "d3c05880663bedc89186c3afb2e4b85d6edff4b3d37f1a2dd7ac7371ed58a4b7", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S037", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 37, "answer_slides": [ 38 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S039", "canonical_id": "W2-S039", "bank": "ef", "week": 2, "title": "Gross margin and contribution", "prompt": "An equipment-accessory startup completes 500 one-time customer orders during a month and charges $160 per order. Its records show the following costs:\n\n| Cost item | Amount |\n| --- | --- |\n| Variable cost of revenue | $100 per order |\n| Variable customer-acquisition spending | $45 per order |\n| Variable payment, onboarding, and service costs | $20 per order |\n| Fixed overhead | $18,000 per month |\n\nThe acquisition spending and the payment, onboarding, and service costs are additional to the $100 cost of revenue. All orders are collected in cash, and no repeat purchases are assumed.\n\nWhat are the month's gross margin percentage and total contribution before fixed overhead?", "fingerprint": "e18fbf3240973af3453c00fdefa4cabb66b97465ad19aa26a168a7b7723d7341", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W2-S039", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 39, "answer_slides": [ 40 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S042", "canonical_id": "W2-S042", "bank": "ef", "week": 2, "title": "Payback from revenue and gross margin", "prompt": "An early-stage SaaS company spends $25,000 in complete acquisition costs to acquire 50 customers. Each generates $100 monthly revenue at 40% gross margin. Revenue and margin stay constant, and customers do not churn during recovery. What is gross-profit CAC payback?", "fingerprint": "04c9e77003f3929256a8df779339ed23afd0060b711d330dba973378a037b42a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S042", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 42, "answer_slides": [ 43 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S044", "canonical_id": "W2-S044", "bank": "ef", "week": 2, "title": "CAC payback", "prompt": "A SaaS company spends $78,000 on sales and marketing during a quarter. Its records separate that spending into two activities:\n\nAcquiring new customers: $60,000 to acquire 100 new paying customers.\n\nRenewing existing customers: $18,000 to renew the 400 paying customers it had at the start of the quarter. All 400 remain customers.\n\nEach new customer generates $125 of monthly recurring revenue at a 64% gross margin. There are no other acquisition costs.\n\nAssume no churn, expansion, discounting, or collection delays. Use only the acquisition costs attributable to the new customers.\n\nHow many months of gross profit from a new customer are needed to recover that customer's acquisition cost?", "fingerprint": "7cb383044d5a1ec2e761586bcadc3866e12ef7b671c957e68539e0fd007a166a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S044", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 44, "answer_slides": [ 45 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S047", "canonical_id": "W2-S047", "bank": "ef", "week": 2, "title": "Customer churn with new signups", "prompt": "A subscription business begins the month with 200 customers. Ten of those starting customers cancel. Thirty new customers join and remain active. What is monthly customer churn?", "fingerprint": "c78fa16fdf76ba5e0df519dae45e0f663884650715ff9c02d02116a063d6b85b", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S047", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 47, "answer_slides": [ 48 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S050", "canonical_id": "W2-S050", "bank": "ef", "week": 2, "title": "Revenue from the starting cohort", "prompt": "A company begins the month with $100,000 monthly recurring revenue (MRR). Existing customers add $15,000 through expansion, lose $5,000 through downgrades, and lose $20,000 through cancellations. New customers add $30,000 MRR. With no other changes, what is net revenue retention (NRR)?", "fingerprint": "6dbc830327ce9de555f2d3fa7b5a132558bfefb7497dbc4d07e68bd8be38fc1a", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S050", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 50, "answer_slides": [ 51 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S053", "canonical_id": "W2-S053", "bank": "ef", "week": 2, "title": "Estimating gross-profit LTV", "prompt": "A SaaS customer pays $120 monthly. Gross margin is 75%, and monthly customer churn is a constant 3%. Assume stable revenue and margin, no expansion, and no discounting. Using the simple gross-profit LTV approximation, what is estimated LTV?", "fingerprint": "45e5a1a66733ee2ea91fe76fab837fda70922bb1c74b6b906fe20232875b2ac1", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W2-S053", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 53, "answer_slides": [ 54 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S056", "canonical_id": "W2-S056", "bank": "ef", "week": 2, "title": "LTV and churn", "prompt": "A subscription business is testing how higher churn would affect the value of a customer. The following inputs remain the same in both scenarios:\n\nMonthly revenue per customer: $180.\n\nGross margin: 70%.\n\nCustomer acquisition cost (CAC): $900.\n\nThe base case assumes constant monthly customer churn of 3.5%. The downside case increases that rate to 5.25%. Management still expects strong growth in new customers, but that growth does not change the retention or spending of the customer being valued.\n\nUse the gross-profit lifetime value (LTV) approximation. Assume no expansion, reactivation, discounting, or other customer cash flows.\n\nWhat are LTV and LTV/CAC in the downside case? Round LTV to the nearest dollar and the ratio to two decimal places.", "fingerprint": "035ed8550d64626ab209a4afc530bb44b18d0639f5c059ca22124006cfc9426f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S056", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 56, "answer_slides": [ 57 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S060", "canonical_id": "W2-S060", "bank": "ef", "week": 2, "title": "Sizing a construction-software opportunity", "prompt": "A founder presents $12 trillion of global construction activity as the market for specialized software sold only to large U.S. commercial contractors. What is the main analytical correction?", "fingerprint": "8d43e023c380a1ac86112e29938cf2de437cd90c0abb2eafa6e83a58e79b9d10", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S060", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 60, "answer_slides": [ 61 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S062", "canonical_id": "W2-S062", "bank": "ef", "week": 2, "title": "TAM, SAM, and SOM", "prompt": "A software company is estimating its market opportunity and the revenue scale it could reach over the next 12 months. It has the following information:\n\n| Input | Estimate |\n| --- | --- |\n| Eligible U.S. contractors in the total addressable market | 18,000 |\n| Annual subscription price per contractor | $6,000 |\n| Share of eligible contractors the current product can serve | 30% |\n| Qualified sales opportunities within that serviceable market | 600 |\n| Expected win rate on those opportunities | 30% |\n| Maximum number of new customers the team can onboard | 120 |\n\nThe company has no existing customers, expects no churn, and faces no other constraints. Its pitch also cites $600 billion of annual construction activity.\n\nFor this question, measure SOM as year-end annual recurring revenue (ARR) from customers actually onboarded, not revenue recognized during the year.\n\nWhich combination of TAM, SAM, and SOM follows from these assumptions?", "fingerprint": "df1258083a13a01fdb2d67c47add2f344be4ecd454f568cca5e691786463c14c", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W2-S062", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 62, "answer_slides": [ 63 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S069", "canonical_id": "W2-S069", "bank": "ef", "week": 2, "title": "From strategy to a forecast", "prompt": "A software startup claims a durable advantage because it uses the same commercial AI model as its rivals. One data supplier can raise prices at renewal, and customer interviews suggest demand for a simpler workflow. Which next step best connects the strategy frameworks to financial assumptions?", "fingerprint": "dff56ac51c6a52090d4d2234b68b29e85129448348415d307cbf9b490bba34d1", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W2-S069", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 69, "answer_slides": [ 70 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S073", "canonical_id": "W2-S073", "bank": "ef", "week": 2, "title": "Providers and customer value", "prompt": "A digital platform connects customers with independent service providers. More providers bring greater selection, shorter wait times, and better availability. Customer value rises even though the number of customers stays unchanged. Which mechanism explains this?", "fingerprint": "e02f0ec78334c6900844a917ecee89e5ac2620c9b4f4a910d5a928de9d80f5c7", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S073", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S075", "canonical_id": "W2-S075", "bank": "ef", "week": 2, "title": "Network effects", "prompt": "A marketplace runs three tests while keeping prices, promotions, and advertising intensity unchanged:\n\nIn comparable neighborhoods, adding qualified sellers raises buyers' order-completion rate from 62% to 80%.\n\nIn a separate test, adding active buyers increases sellers' utilization and willingness to stay on the platform.\n\nIn another test, moving to a different cloud system reduces processing cost per transaction. The numbers of buyers, sellers, and completed orders do not change.\n\nThe marketplace continues to subsidize delivery.\n\nWhich conclusion correctly identifies what these results show about network effects, cost efficiency, and contribution?", "fingerprint": "8b2ac42f559a6a6de27606238599d3b6171ba96884b132b12549f3f851048b0c", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W2-S075", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 75, "answer_slides": [ 76 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S079", "canonical_id": "W2-S079", "bank": "ef", "week": 2, "title": "Current cash runway", "prompt": "A startup has $900,000 usable cash, $180,000 monthly operating cash outflows, and $105,000 monthly operating cash inflows. Both flows remain constant, with no financing or other cash flows. What is current runway?", "fingerprint": "3b997da176f1c80cc145f43c9954f25e8017e46f04c02ae7c4fd757f649979b0", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W2-S079", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 79, "answer_slides": [ 80 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S083", "canonical_id": "W2-S083", "bank": "ef", "week": 2, "title": "Growth, commitments, and runway", "prompt": "A startup raises capital, hires aggressively, and signs a long office lease. Six months later, growth is below plan, cash will run out before profitability, and committed costs cannot fall quickly. Which course concept best describes the situation?", "fingerprint": "8496ff8354691f000576866a3a762910b8aee40e27e821840f5f43b449dd7d66", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S083", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 83, "answer_slides": [ 84 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S085", "canonical_id": "W2-S085", "bank": "ef", "week": 2, "title": "Default dead and the fatal pinch", "prompt": "A startup raised capital eight months ago. Its current plan shows the following:\n\nExisting cash will cover five more months of operations.\n\nWith expenses held constant and recent revenue growth continuing, the company will reach profitability 14 months from now.\n\nGrowth has slowed, and most payroll and lease commitments cannot be reduced quickly.\n\nAn investor has requested a presentation but has not committed any money. The founder argues that the previous financing round and the investor's interest make the company default alive.\n\nWhich assessment best describes the company's position and the implication for its financing plan?", "fingerprint": "2ae3b7525211423a1b6ddc93510280f7ebe98783ebe36925ef75162815a933c0", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S085", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 85, "answer_slides": [ 86 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S088", "canonical_id": "W2-S088", "bank": "ef", "week": 2, "title": "Burn multiple and cash needs", "prompt": "During one quarter, a SaaS venture consumes $900,000 of net cash under a consistently defined burn measure. ARR rises from $2.4 million to $3.0 million. Recognized revenue is $720,000, and a financing round adds $2 million of cash. What is the quarter’s burn multiple and the strongest interpretation?", "fingerprint": "9a623301bd524c79fea018ef077d600e97d3f3d1f433cce298ffa502e2548724", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S088", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 88, "answer_slides": [ 89 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S092", "canonical_id": "W2-S092", "bank": "ef", "week": 2, "title": "Founder capability and opportunity economics", "prompt": "Why does the Venture Economics Framework assess the opportunity separately from the founder?", "fingerprint": "2035b234385896ef7d918ceb82491c29f9a9ef380ab1c0fa4728e7146867074e", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S092", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 92, "answer_slides": [ 93 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S096", "canonical_id": "W2-S096", "bank": "ef", "week": 2, "title": "Problem–solution fit and product–market fit", "prompt": "What distinguishes problem–solution fit from product–market fit?", "fingerprint": "fa2a3a9096b43f2312a3e99d516a7b13846c4cd5e3c897af88ff5f21c37e79fa", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S096", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 96, "answer_slides": [ 97 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S098", "canonical_id": "W2-S098", "bank": "ef", "week": 2, "title": "Evidence from interviews and a waitlist", "prompt": "A founder has completed 30 discovery interviews and built a 400-person waitlist, but no one has paid. What is the highest demonstrated level on the course evidence ladder?", "fingerprint": "91659fcdf10fee1c2582d11aeafd09654d8883f0c3ae2ed6f7a79c19e6ce7c3c", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S098", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 98, "answer_slides": [ 99 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S100", "canonical_id": "W2-S100", "bank": "ef", "week": 2, "title": "Customer traction versus market interest", "prompt": "An early-stage software company is trying to determine whether it has customer traction rather than simply market interest. Which evidence provides the strongest support?", "fingerprint": "981adc88d73e067af70a17bcac395cf1fcdbe3bb1acfa20a3403c934d94c3275", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S100", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 100, "answer_slides": [ 101 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S102", "canonical_id": "W2-S102", "bank": "ef", "week": 2, "title": "What unpaid demand establishes", "prompt": "A startup completes 40 customer interviews and collects 600 waitlist signups. Target customers consistently describe the problem as important, but none has paid. Which conclusion is best supported?", "fingerprint": "83e00d933471e7d21e0b6961914ae40085906dcae84d1ddf6fe8e8a40e0a45c6", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S102", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 102, "answer_slides": [ 103 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S104", "canonical_id": "W2-S104", "bank": "ef", "week": 2, "title": "Scaling software and consulting", "prompt": "In this case, a SaaS firm can double revenue using existing capacity with modest incremental staffing. A consulting firm adds delivery professionals roughly in proportion to client work. What explains the difference?", "fingerprint": "214dbd18b46fa84d8da0b0d9dd806aed3ef8ed7b28e4efb93f4c6749667d4f31", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S104", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 104, "answer_slides": [ 105 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S106", "canonical_id": "W2-S106", "bank": "ef", "week": 2, "title": "The cost-based pricing rule", "prompt": "A founder starts with fully loaded cost and adds an amount to achieve a target margin. Which pricing approach is this, and what is its main risk?", "fingerprint": "0162ac088312985afdf85660c4be2ea8c0c5d93b2a6a4144c3debbefbcf6f4e8", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S106", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 106, "answer_slides": [ 107 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S108", "canonical_id": "W2-S108", "bank": "ef", "week": 2, "title": "Monthly operating cash break-even", "prompt": "A venture sells for $65 per unit, incurs $25 variable cash cost per unit, and pays $24,000 fixed monthly cash operating costs. Sales are collected and costs paid that month. With no other cash flows, how many units cover the monthly operating cash costs?", "fingerprint": "cb55e766f847f19b0f07eeb44e7e363f2ef840f3cc3aef03e13c4f7c81506d23", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W2-S108", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 108, "answer_slides": [ 109 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S110", "canonical_id": "W2-S110", "bank": "ef", "week": 2, "title": "A price increase with fewer customers", "prompt": "Customers pay $50 per month for a product serving 5,000 customers. Variable cost is $30 per customer, and fixed monthly costs are $100,000. Price rises 20% to $60 and customer count falls 10%. With unit variable cost and fixed costs unchanged, what is monthly operating profit?", "fingerprint": "c973fe06fa7aa63e8e13cd093361f0f69cfe251dda9a15ca468ca0fb074f4884", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S110", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 110, "answer_slides": [ 111 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S112", "canonical_id": "W2-S112", "bank": "ef", "week": 2, "title": "A $900 annual contract", "prompt": "A product has a $900 annual contract value, with no unusual expansion opportunity. Which go-to-market motion is the strongest initial candidate to test on economic grounds?", "fingerprint": "eb985c445e54409af3cf5ef8698fbf6573144a3ed75c00687c91f53783474b88", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S112", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 112, "answer_slides": [ 113 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S114", "canonical_id": "W2-S114", "bank": "ef", "week": 2, "title": "Gross-profit CAC payback", "prompt": "A startup spends $48,000 in complete sales and marketing acquisition costs to acquire 80 new customers. Each customer produces $60 monthly gross profit. Ignoring churn, expansion, discounting, and other cash flows, what is gross-profit CAC payback?", "fingerprint": "920ff75ea5c729370bea83214f32a2dfaabd2592fdcb724c0c87e3ac3cc27424", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W2-S114", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 114, "answer_slides": [ 115 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S116", "canonical_id": "W2-S116", "bank": "ef", "week": 2, "title": "The effect of higher churn", "prompt": "Two SaaS firms have $200 monthly revenue per customer, 80% gross margin, and $2,000 CAC. Their only difference is constant monthly churn: 2.8% versus 6%. Under the simple LTV model, what is the main effect of higher churn?", "fingerprint": "33e6fc982ba400031e104aa0a7f7ed0dd0d2baec8eae2c139b7698a9888e44a2", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S116", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 116, "answer_slides": [ 117 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S118", "canonical_id": "W2-S118", "bank": "ef", "week": 2, "title": "Positive CM1 and negative CM2", "prompt": "For a one-time purchase, CM1 subtracts variable delivery and service costs from revenue. CM2 also subtracts variable selling and acquisition costs. A business has positive CM1 but negative CM2. What does this mean?", "fingerprint": "61d52cae86a9c212ea6c0de433172b571b3a44487be02aecbcdef27cafb50dac", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S118", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 118, "answer_slides": [ 119 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S120", "canonical_id": "W2-S120", "bank": "ef", "week": 2, "title": "A broad industry figure in a software pitch", "prompt": "A founder cites $12 trillion of global construction activity as the opportunity for construction software, without identifying buyers or software budgets. What is the main credibility problem?", "fingerprint": "20a3b3a7525410a67b90b3a73f63a2a0c6f8c94a7da620adf561d3d510b3f958", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S120", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 120, "answer_slides": [ 121 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S122", "canonical_id": "W2-S122", "bank": "ef", "week": 2, "title": "Evidence for a marketplace network effect", "prompt": "A two-sided marketplace argues that it has a cross-side network effect. Which evidence most directly supports that claim?", "fingerprint": "d30e4eadec6ed996b057a958bd76fba1befa86a64bb69f68e6268fde95206474", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W2-S122", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 122, "answer_slides": [ 123 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W2-S133", "canonical_id": "W2-S133", "bank": "ef", "week": 2, "title": "TablePilot expansion and cash", "prompt": "TablePilot has $300,000 usable cash. Expansion costs $75,000 immediately. Current monthly receipts are $24,000 and total outflows are $49,000; expansion adds $15,000 monthly outflows. With no incremental receipts, financing, or other cash flows, and constant monthly flows, what runway remains after the upfront payment?", "fingerprint": "5b7aa01a1bb996dd965bca07a5b1f280e5d9aee684e41fb1dcd191fef28f065b", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W2-S133", "locations": [ { "deck_id": "1df_iivl46sH3jSSPpOnJH28PdEaDhzVf", "deck_name": "1. Week 2 - FIN143 - Venture Economics Framework - SCU.pptx", "question_slide": 133, "answer_slides": [ 134, 135 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S006", "canonical_id": "W3-S006", "bank": "ef", "week": 3, "title": "Connecting profit and cash", "prompt": "A startup collects $180,000 on January 1 for twelve months of service delivered evenly. It purchases $36,000 of equipment the same day, depreciated straight-line over three years with no residual value. Ignore taxes and all other activity.\n\nAt January 31, which combination is correct?", "fingerprint": "e941cd016f9f77e59e1da93f4c966d0fae7ac76692d6045af7c23f63c9765973", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S006", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 6, "answer_slides": [ 7 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S010", "canonical_id": "W3-S010", "bank": "ef", "week": 3, "title": "Vertical analysis", "prompt": "An analyst wants to see what share of each revenue dollar goes to cost of goods sold and operating expenses. Which tool answers this directly?", "fingerprint": "1def8c191f6a20e89f50e74bf36cf5637c9f832731fb093d4da065a205175d4f", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S010", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 10, "answer_slides": [ 11 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S013", "canonical_id": "W3-S013", "bank": "ef", "week": 3, "title": "Ratios and payment capacity", "prompt": "A startup reports $300,000 cash, $600,000 net receivables, $400,000 inventory, and $200,000 prepaid costs. Current liabilities are $1 million. There are no marketable securities. Most receivables arrive in 90 days, while a large supplier payment is due in 30 days. Under the stated course definitions, which assessment is correct?", "fingerprint": "93bb6980e6bdf3bab880df9c47696b6b8306531ca7b9ee12a902921edd68ae2a", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S013", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 13, "answer_slides": [ 14 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S017", "canonical_id": "W3-S017", "bank": "ef", "week": 3, "title": "Analyst posture", "prompt": "A founder presents financials that recognize revenue at signing and emphasize cash inflows over outflows.. What posture should the analyst take?", "fingerprint": "5cdb3d8fdc879291890beacb5168b8b2b26950a3d62d80c02b8c36b61c044777", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S017", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 17, "answer_slides": [ 18 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S022", "canonical_id": "W3-S022", "bank": "ef", "week": 3, "title": "Agent revenue", "prompt": "A platform facilitates $10 million of customer transactions during the year and retains a 15% commission on each transaction. The platform has 250,000 active users, an average transaction value of $40, and incurred $600,000 of marketing costs and $400,000 of platform-development costs during the year. The third-party sellers are responsible for fulfilling the orders, and the platform does not control the underlying goods or services before they are transferred to customers.\n\nUnder ASC 606, how much revenue should the platform report?", "fingerprint": "b22829254afa8a6ef075fc8babdf35675df8eb7b9866c7a44994dc3c35872145", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W3-S022", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 22, "answer_slides": [ 23 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S026", "canonical_id": "W3-S026", "bank": "ef", "week": 3, "title": "Cash collections", "prompt": "A founder says the company 'did $5 million last quarter.' Which figure most directly shows cash actually received from customers during that quarter?", "fingerprint": "7d1711fd4ac52f396f2fb6472d1cde9b136c429399660f3a99abd6acf732db40", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S026", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 26, "answer_slides": [ 27 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S029", "canonical_id": "W3-S029", "bank": "ef", "week": 3, "title": "Deferred revenue", "prompt": "A startup's operating cash flow is positive because customers increasingly pay before the company delivers, creating deferred revenue. This indicates that:", "fingerprint": "82b578794e4266198360df9f4413c2cbdd32394bcfe3f281ad243aa501adfa26", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S029", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 29, "answer_slides": [ 30 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S031", "canonical_id": "W3-S031", "bank": "ef", "week": 3, "title": "Deferred revenue and refunds", "prompt": "A SaaS company begins the year with $84,000 of deferred revenue. Customers pay before the related service revenue is recognized, and the company has no accounts receivable.\n\nThe company reports the following activity for the first three quarters:\n\n| Item | Q1 | Q2 | Q3 |\n| --- | --- | --- | --- |\n| Gross customer cash collections | $180,000 | $120,000 | $225,000 |\n| Revenue recognized | $150,000 | $165,000 | $195,000 |\n| Cash refunds of unearned advances | $0 | $15,000 | $9,000 |\n\nEvery refund returns an unearned customer advance already included in deferred revenue. None reverses revenue that was previously recognized, and there are no other changes to the deferred-revenue balance.\n\nManagement highlights the strong third-quarter cash collections in its investor update.\n\nAt September 30, what is the deferred-revenue balance, and how do year-to-date customer cash collections after refunds compare with year-to-date recognized revenue?", "fingerprint": "956809af96b5c8c3b534a1607c232ba8e296801047e161225dc3ebb244b13ee1", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S031", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 31, "answer_slides": [ 32 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S036", "canonical_id": "W3-S036", "bank": "ef", "week": 3, "title": "Operating cash flow", "prompt": "A SaaS company begins the year with $250,000 of cash and reports a $450,000 net loss for the year. The net loss includes $120,000 of depreciation and amortization and $90,000 of noncash stock-based compensation.\n\nThe following operating balances change during the year:\n\n| Account | Change |\n| --- | --- |\n| Accounts receivable | Increase of $160,000 |\n| Accounts payable | Increase of $70,000 |\n| Deferred revenue | Increase of $480,000 |\n\nThese changes arise only from ordinary operating transactions. The increase in deferred revenue comes from customers paying in advance for future services.\n\nThe company also pays $210,000 for capital expenditures, receives $300,000 from new borrowing, and repays $60,000 of loan principal.\n\nAssume no other noncash adjustments, working-capital changes, tax or interest timing adjustments, or cash flows. Use the indirect method under U.S. GAAP.\n\nWhat are cash flow from operations and the total change in cash for the year?", "fingerprint": "3466ef7c3245961b88d82e537473bcf86f570ebbd4a7649c54e9de9af0bacc9a", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S036", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 36, "answer_slides": [ 37 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S048", "canonical_id": "W3-S048", "bank": "ef", "week": 3, "title": "Discounted prepayments", "prompt": "A company lifted this quarter's cash by offering customers 50% discounts to prepay annually. On a cash-basis view, the inflow is best read as:", "fingerprint": "0309d8bd861a3aa66307738be5746e4fbe4eb0c15d6eaf80b03d27114524b2cc", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S048", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 48, "answer_slides": [ 49 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S050", "canonical_id": "W3-S050", "bank": "ef", "week": 3, "title": "Discounted prepayments", "prompt": "A company offers a three-year service contract under two payment options:\n\nAnnual billing: The customer pays $140,000 at the end of each year for three years.\n\nPrepayment: The customer pays the full three-year contract price today and receives an 18% discount from the total undiscounted price.\n\nIf the customer prepays, the company also incurs an $8,400 processing and contract-administration cost today. This cost is not incurred under annual billing.\n\nThe company can immediately reinvest any cash it receives in another business line that is expected to earn a 22% annual return over the next three years. The company incurs $28,000 of service-delivery costs at the end of each year under either payment option.\n\nAssume the service obligations are identical, all amounts are collected as scheduled, and there are no taxes or other incremental cash flows. Treat 22% as the appropriate annual opportunity cost of capital for this comparison.\n\nWhat is the incremental NPV today to the company of accepting prepayment rather than annual billing, rounded to the nearest $100?", "fingerprint": "30089711c53fb9dfbb5558851912b1fdc994d2256fafa893eee875332226974a", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S050", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 50, "answer_slides": [ 51 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S053", "canonical_id": "W3-S053", "bank": "ef", "week": 3, "title": "Growth and collection timing", "prompt": "A startup earns a positive contribution margin on every new customer. Customer acquisition spending is paid immediately, but customers pay invoices 60 days later. Sales are accelerating rapidly. Which conclusion is most accurate?", "fingerprint": "3b699748b3ba6a586d5271c0a52a6cdb9e73a3d8a62961f5971a132c9d4077cf", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S053", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 53, "answer_slides": [ 54, 55 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S056", "canonical_id": "W3-S056", "bank": "ef", "week": 3, "title": "Profit and delayed collections", "prompt": "A startup is preparing its first-quarter forecast. It begins January with $180,000 of cash and no accounts receivable or accounts payable.\n\n| Month | Orders expected to be delivered |\n| --- | --- |\n| January | 80 |\n| February | 120 |\n| March | 200 |\n\nEach one-time order has the following terms:\n\nThe company recognizes $1,200 of revenue when it delivers the order.\n\nAcquisition and delivery costs total $900, paid and expensed in the delivery month.\n\nThe customer pays in full at the end of the second month after delivery. For example, January orders are collected at the end of March.\n\nFixed operating costs are $15,000 per month, paid and expensed monthly. An investor has mentioned a possible $500,000 investment in a nonbinding letter, but the forecast includes no financing.\n\nAssume all scheduled orders are delivered, with no taxes, noncash items, payment deferrals, or other cash flows. A negative projected cash balance represents an unfunded shortfall.\n\nWhat are projected first-quarter operating profit and the March 31 cash balance before financing?", "fingerprint": "7b9fc0d8458d1bc58235b0bbc500e1d5210bd2d183a6446bf801a53de95f03fa", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S056", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 56, "answer_slides": [ 57 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S061", "canonical_id": "W3-S061", "bank": "ef", "week": 3, "title": "Collection timing and cash required", "prompt": "Annual credit sales are $3.65 million and average receivables are $500,000. Sales occur evenly, bad debts are negligible, and inventory and supplier terms remain unchanged. Management can reduce DSO to 35 days without affecting sales or margins.\n\nUsing 365 days, what are current DSO and the one-time cash released when receivables reach the target?", "fingerprint": "749f03f597679bd8e1b3ef7db2dade37422daf8c9c66244df89b5b83f9da9c06", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W3-S061", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 61, "answer_slides": [ 62 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S066", "canonical_id": "W3-S066", "bank": "ef", "week": 3, "title": "Working capital and FCFF", "prompt": "In the FCFF formula, how does an increase in net operating working capital, excluding cash and financing debt, affect free cash flow?", "fingerprint": "339a3370342303a1b86720f0975af7b3edfebd1021bcad7634c26099fc219106", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S066", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 66, "answer_slides": [ 67 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S068", "canonical_id": "W3-S068", "bank": "ef", "week": 3, "title": "Free cash flow to the firm", "prompt": "A profitable equipment-software company reports the following annual results:\n\nEBIT: $6.40 million, after $0.90 million of depreciation and amortization.\n\nCapital expenditures: $1.70 million.\n\nTax rate: 25%.\n\nIts only operating working-capital accounts are shown below. All balances are in millions of dollars.\n\n| Account | Beginning balance | Ending balance |\n| --- | --- | --- |\n| Accounts receivable | $1.20 | $1.90 |\n| Inventory | $0.65 | $0.95 |\n| Accounts payable | $0.80 | $1.15 |\n\nDuring the year, the company also pays $0.40 million of interest, issues $0.90 million of new debt, and repays $0.25 million of debt principal.\n\nAssume no loss carryforwards, tax timing differences, or other noncash adjustments.\n\nWhat is the company's annual free cash flow to the firm (FCFF)?", "fingerprint": "b286545dffcda0968ce8e9d44db803ae733fd7a4aedbba72e6633e0a518ff2d0", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S068", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 68, "answer_slides": [ 69 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S071", "canonical_id": "W3-S071", "bank": "ef", "week": 3, "title": "Runway", "prompt": "A pre-revenue startup holds $1.8 million in cash and burns $150,000 net per month. What is its runway?", "fingerprint": "64b56b32d4c74102615c3c905c6a404883e3ca07beac1781b77589a3c050ec02", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W3-S071", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 71, "answer_slides": [ 72 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S073", "canonical_id": "W3-S073", "bank": "ef", "week": 3, "title": "Runway and the cash floor", "prompt": "A startup has $1.08 million in its bank accounts. Of that amount, $180,000 is restricted and cannot be used for operations. On day one, the company pays $120,000 for equipment from its usable cash.\n\nIts operating cash forecast is:\n\n| Period | Monthly cash outflows | Monthly cash receipts |\n| --- | --- | --- |\n| Months 1 and 2 | $210,000 | $90,000 |\n| Month 3 onward | $180,000 | $100,000 |\n\nThe equipment payment is additional to these outflows. Net operating cash use occurs evenly within each month. The company wants to maintain at least $180,000 of usable cash and has no additional financing or other cash flows.\n\nHow many months after day one will usable cash first fall to the $180,000 minimum?", "fingerprint": "bdae3814a4ee266d611907805f45d7e1a35726f41665c0ee90a972174b77f419", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S073", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S078", "canonical_id": "W3-S078", "bank": "ef", "week": 3, "title": "Net revenue retention", "prompt": "Two SaaS companies each report $10 million ARR. One has 120% net revenue retention; the other has 85%. The difference tells you that:", "fingerprint": "ad2b4f88e7d6c5e5aaf6ba329acb3f2beb518f85e1ca5d9a66f4e7adce2918ac", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S078", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 78, "answer_slides": [ 79 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S081", "canonical_id": "W3-S081", "bank": "ef", "week": 3, "title": "Cohort decay", "prompt": "A startup grows revenue 30% year over year, but each customer cohort loses 40% of its revenue within 12 months. The most accurate read is:", "fingerprint": "4105ca5a37b1bc7f669c7106a01b17b245dbb675d692495efd2f2baeb6156fec", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S081", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 81, "answer_slides": [ 82 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S087", "canonical_id": "W3-S087", "bank": "ef", "week": 3, "title": "PEG Ratio Calculation", "prompt": "A company’s stock trades at $84 per share. Current EPS is $4.00, and analysts expect EPS to reach $6.91 in three years. Assume earnings grow at a constant annual rate.\n\nWhat is the company’s approximate PEG ratio?", "fingerprint": "8779d30f0b9341fee12b1ade0ce917759829eaf8ff11be64c1160f4124168537", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W3-S087", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 87, "answer_slides": [ 88 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S089", "canonical_id": "W3-S089", "bank": "ef", "week": 3, "title": "Valuation Metrics Multiple Choice", "prompt": "A company has:\n\nMarket capitalization: $3.9 billion\n\nDiluted shares outstanding: 50 million\n\nCurrent net income: $160 million\n\nExpected net income in three years: $280 million\n\nExpected diluted shares in three years: 52 million\n\nPeer median P/E: 25.0x\n\nPeer median PEG: 1.25x\n\nAssume EPS grows at a constant annual rate. An investor considers the stock attractive only if both its P/E and PEG are below the peer medians. Which analysis is correct?", "fingerprint": "6e4d98ca9559b77b24118395742710a2bc99e63fdc9f4f276b44cee7fd51c332", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S089", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 89, "answer_slides": [ 90 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S091", "canonical_id": "W3-S091", "bank": "ef", "week": 3, "title": "P/E versus PEG", "prompt": "An analyst is comparing two profitable technology companies:\n\n| Measure | Orion | Vega |\n| --- | --- | --- |\n| Current share price | $84.00 | $90.00 |\n| Trailing EPS | $3.00 | $5.00 |\n| Forecast EPS | $3.60 | $5.60 |\n| Recent annual revenue growth | 35% | 24% |\n| Dividend yield | 4% | 3% |\n\nFor both companies, trailing earnings per share (EPS) covers the same most recent 12 months, and forecast EPS covers the following 12 months. Assume no stock splits or changes in the share basis.\n\nUse trailing P/E and the conventional PEG ratio based on expected EPS growth from the trailing year to the forecast year.\n\nWhich answer gives the correct P/E and PEG for each company, rounded to two decimal places?", "fingerprint": "94d5b060edb415a667a249805081d8a00a9fb04043fdb731e9e8580dbc050ff2", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S091", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 91, "answer_slides": [ 92 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S098", "canonical_id": "W3-S098", "bank": "ef", "week": 3, "title": "Customer concentration", "prompt": "In diligence, a startup's top three customers are 60% of revenue with no long-term contracts. In a quality-of-earnings review this most represents:", "fingerprint": "de344f002410e9d1ef7d9940369d231372477f1d111e19aa127e1f41120fe4c5", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S098", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 98, "answer_slides": [ 99 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S103", "canonical_id": "W3-S103", "bank": "ef", "week": 3, "title": "Participating preferred", "prompt": "A startup exit leaves $8 million available to equity after debt and transaction costs. An investor holds an uncapped 1x participating preferred on a $4 million investment. Versus a 1x non-participating investor, the participating investor generally receives:", "fingerprint": "e5064e8e5ce51f99ed3f0e2d3d68de4b4e2a839b7060ed260467b1829619e3d6", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W3-S103", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 103, "answer_slides": [ 104 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S109", "canonical_id": "W3-S109", "bank": "ef", "week": 3, "title": "Value Lease A’s level cash flows", "prompt": "Optional NPV practice\n\nLease A costs the landlord $20,000 today and produces net cash flow of $90,000 at each of the next three year-ends. At an 8% annual discount rate, the three-year ordinary-annuity present-value factor is 2.57709699.\n\nAssume these are all relevant lease cash flows, with no terminal value. What is NPV, rounded to the nearest dollar?", "fingerprint": "952b2887c0e87a56169d20251820a853e630f2a3659458c5a66b23ff556bb018", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W3-S109", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 109, "answer_slides": [ 110 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S111", "canonical_id": "W3-S111", "bank": "ef", "week": 3, "title": "Value Lease B’s unequal cash flows", "prompt": "Optional NPV practice\n\nLease B costs the landlord $45,000 today and produces net cash flow of $100,000, $102,000, and $104,000 at the ends of Years 1, 2, and 3, respectively. The annual discount rate is 8%. There is no terminal value or other relevant cash flow.\n\nWhat is NPV, rounded to the nearest $100?", "fingerprint": "23daa1ff8ae439b06c4229424bffbd524b1c06707b0feb3972bdcd9b32a38c1c", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W3-S111", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 111, "answer_slides": [ 112 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S113", "canonical_id": "W3-S113", "bank": "ef", "week": 3, "title": "PEG ratio", "prompt": "A profitable technology company trades at $120 per share and reports current EPS of $3.00. Analysts expect EPS of $4.50 next year. The company’s industry average P/E is 28×, its dividend yield is 1.5%, and revenue grew 35% this year.\n\nUsing expected EPS growth, what is the company’s PEG ratio?\n\nConvention: Use current EPS to calculate P/E.", "fingerprint": "d50f4e7541abd0d422da8185aa83ab4e6f4372eef87a0f5ef7378f5bc50a2053", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W3-S113", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 113, "answer_slides": [ 114 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S115", "canonical_id": "W3-S115", "bank": "ef", "week": 3, "title": "Analyst posture", "prompt": "A founder presents investor materials showing $6.0 million of “revenue” based largely on contracts signed during the year. Cash collections were $3.8 million, customer-related cash outflows were $2.9 million, and several contracts require services to be delivered over the next 12 months. The company does not yet prepare audited financial statements.\n\nWhat is the most appropriate analytical approach?", "fingerprint": "3d379a2b6974f12c6c87846b9d4448b589519ee01cd35ef800f52d260e35ec55", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W3-S115", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 115, "answer_slides": [ 116 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S117", "canonical_id": "W3-S117", "bank": "ef", "week": 3, "title": "Deferred revenue", "prompt": "A SaaS startup reports a $1.2 million net loss for the year. Its cash flow statement includes $400,000 of depreciation and amortization, $300,000 of stock-based compensation, a $500,000 increase in accounts receivable, and a $2.2 million increase in deferred revenue. The company also spent $1.5 million on capital expenditures during the year.\n\nMost of the increase in deferred revenue resulted from customers paying annually in advance for subscription services that will be provided over the next 12 months.\n\nThe company reports positive operating cash flow of $1.2 million. Which interpretation is most accurate?", "fingerprint": "7b56e04fe4e878d81dab749b93444ac1633b183d66ad2fe71ef1da914738f2f9", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W3-S117", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 117, "answer_slides": [ 118 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S119", "canonical_id": "W3-S119", "bank": "ef", "week": 3, "title": "Deferred revenue", "prompt": "A SaaS company begins the year with $40,000 of deferred revenue. All customer consideration is collected before the related revenue is recognized. Assume there are no refunds or other contract liability adjustments.\n\nAt September 30, which statement is correct?\n\n| | Q1 | Q2 | Q3 |\n| --- | --- | --- | --- |\n| Cash collected | $90,000 | $60,000 | $120,000 |\n| GAAP revenue recognized | $70,000 | $80,000 | $95,000 |", "fingerprint": "1fd79688f68da35f8ed2919afbb76f5ce38f506924c8228d91900404f114712a", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S119", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 119, "answer_slides": [ 120 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S121", "canonical_id": "W3-S121", "bank": "ef", "week": 3, "title": "Discounted prepayments", "prompt": "A company normally charges $100,000 per year for three years, payable at the end of each year. It offers a customer a 20% discount to prepay the entire three-year contract at signing, resulting in an immediate cash payment of $240,000.\n\nThe company can reinvest available cash in a business unit expected to earn 25% annually. Assume 25% represents the appropriate opportunity cost of capital. Ignore taxes and operating costs.\n\nWhat is the approximate incremental NPV of accepting the prepaid contract rather than collecting $100,000 annually?", "fingerprint": "0229b8a4fde19219150ea2a44fa086cdd5d1c220c0fb79b4c9f006a9d2be13af", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W3-S121", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 121, "answer_slides": [ 122 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W3-S123", "canonical_id": "W3-S123", "bank": "ef", "week": 3, "title": "Free cash flow to the firm", "prompt": "A company reports EBIT of $5.0 million, a 25% tax rate, $700,000 of depreciation and amortization, and $1.4 million of capital expenditures. During the year, accounts receivable increased by $900,000, inventory increased by $400,000, and accounts payable increased by $500,000.\n\nAssume these are the only changes in operating working capital. What is the company’s FCFF?", "fingerprint": "8793e115432252cb95ce64119b03cf633e798851cde121e1f20d2d3125770d48", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W3-S123", "locations": [ { "deck_id": "1ebhLuS-CMsICLW-5ldpAXEjUMyerFOeb", "deck_name": "1. Week 3 - FIN143 - Financial Statement Analysis for Startups - SCU.pptx", "question_slide": 123, "answer_slides": [ 124 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S006", "canonical_id": "W4-S006", "bank": "ef", "week": 4, "title": "Compound growth", "prompt": "An employee earning $40,000 wants to reach $200,000 in 10 years. What annual rate must they sustain?", "fingerprint": "d386fe27fb5fd38d80f8ec1639c706890fb1e147070a453c69a1f2656ce16a49", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W4-S006", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 6, "answer_slides": [ 7 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S010", "canonical_id": "W4-S010", "bank": "ef", "week": 4, "title": "TTM revenue", "prompt": "Last fiscal-year revenue was $4.2 million. Current year-to-date revenue is $1.6 million, and revenue for the comparable prior-year year-to-date period was $1.1 million. What is trailing-twelve-month revenue?", "fingerprint": "ba777d6968576ecb1a1d6aaa4c22225fa1dd4d20cc497e5b7212dd873813fa00", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W4-S010", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 10, "answer_slides": [ 11 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S013", "canonical_id": "W4-S013", "bank": "ef", "week": 4, "title": "TTM and recurring run rate", "prompt": "At September 30, a startup is preparing an investor update using these revenue figures:\n\n| Reporting period | Revenue |\n| --- | --- |\n| Full prior calendar year | $5.70 million |\n| January–September of the prior year | $3.90 million |\n| January–September of the current year | $5.10 million |\n\nSeptember's recognized revenue is $780,000. That amount includes $180,000 from a one-time implementation project and $600,000 of recurring subscription revenue. Management forecasts $9.40 million of revenue for the next 12 months.\n\nFor this comparison, include one-time items in historical trailing-twelve-month (TTM) total revenue. Base the recurring annualized run rate only on September's recurring revenue.\n\nWhat are TTM total revenue through September 30 and the recurring annualized run rate at that date?", "fingerprint": "bd4cfcf3832ec31573feb0f6a0b7a81ead77b5b38ddf2a5e03c25074c6241ae8", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W4-S013", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 13, "answer_slides": [ 14 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S018", "canonical_id": "W4-S018", "bank": "ef", "week": 4, "title": "Operating drivers", "prompt": "Which approach provides the strongest operating foundation for a driver-based revenue forecast?", "fingerprint": "378746da2b5beafdd0603dcc7fb00822d3f41f297dd19338e1b6a889a83f19ad", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W4-S018", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 18, "answer_slides": [ 19, 20 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S021", "canonical_id": "W4-S021", "bank": "ef", "week": 4, "title": "Customer additions and churn", "prompt": "Scenario: A subscription business is preparing next year’s revenue forecast. Management expects to begin the year with 8,000 customers, add 500 customers per month, lose 2% of customers each month, and earn an average of $40 per customer per month. Which approach best reflects driver-based forecasting?", "fingerprint": "c83f9f3fe7c08341a77d4f76dec81fa6f43dcb69f408fbadfcbc13a1888304b8", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W4-S021", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 21, "answer_slides": [ 22, 23 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S028", "canonical_id": "W4-S028", "bank": "ef", "week": 4, "title": "Profit and cash", "prompt": "Among the eleven guidelines, why does the module insist on always building a cash flow model?", "fingerprint": "c23cf16c951bb12c3ae98844ca1b43c405ff80c426bc1e396d239cd63bb793de", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W4-S028", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 28, "answer_slides": [ 29 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S030", "canonical_id": "W4-S030", "bank": "ef", "week": 4, "title": "Model structure", "prompt": "A founder builds a five-year model using annual revenue growth assumptions, hard-coded formulas, and a single base case. The model shows accounting profit, but does not separately forecast cash balances or operating drivers. Which change would most improve the model?", "fingerprint": "3a4ff8e6814aa5b5ff8e65f3a028737c79552a70b0d351c735b71ab1648912a6", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W4-S030", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 30, "answer_slides": [ 31, 32 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S037", "canonical_id": "W4-S037", "bank": "ef", "week": 4, "title": "Sales ramp", "prompt": "A rep is hired in January with a 90-day time to productivity. When does the model credit that rep with sales?", "fingerprint": "e394947513d2be541591d1f65a6bcf3feba1ee9055531cf34a33f177fb38cff3", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W4-S037", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 37, "answer_slides": [ 38 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S039", "canonical_id": "W4-S039", "bank": "ef", "week": 4, "title": "Sales ramp and revenue", "prompt": "A SaaS company is forecasting first-quarter bookings and revenue. Its sales team has two groups:\n\nExperienced representatives: Three representatives each close two annual contracts per month in January, February, and March.\n\nNew representatives: Two representatives join on February 1. They close no contracts in February. In March, each closes contracts at 50% of the experienced representatives' monthly rate.\n\nEvery contract has a $24,000 annual value. Contracts close at month-end, and customers pay the full amount immediately. Service begins on the first day of the following month, with revenue earned evenly over the next 12 months.\n\nAssume no existing contracts, discounts, or cancellations.\n\nWhat are total first-quarter bookings and recognized revenue?", "fingerprint": "2d09258a1ee92957a391c248ab3cf908d8eb1d13249085d1efcd38f2fcb7b7e2", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W4-S039", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 39, "answer_slides": [ 40 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S043", "canonical_id": "W4-S043", "bank": "ef", "week": 4, "title": "Annual churn", "prompt": "A subscription business has 2% monthly churn. Roughly how much of its base does it lose in a year?", "fingerprint": "85da7c2cb30abda7c1ffcc3dcc4fa861f5dc5a46cc9725e340dedc0c52c1248c", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W4-S043", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 43, "answer_slides": [ 44 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S050", "canonical_id": "W4-S050", "bank": "ef", "week": 4, "title": "Forecast revenue, receivables, and cash", "prompt": "A monthly forecast starts with $80,000 cash and $30,000 receivables. Credit sales are $120,000, collections are $95,000, and cash operating expenses are $70,000. Equipment costs $40,000 cash; monthly depreciation is $4,000. There are no other accruals, taxes, or financing flows.\n\nWhich forecast is internally consistent?", "fingerprint": "a67503aec050de361fdad948aab58c38cd25a1ede6a14fb7429f58091cd099c2", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W4-S050", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 50, "answer_slides": [ 51 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S055", "canonical_id": "W4-S055", "bank": "ef", "week": 4, "title": "Runway", "prompt": "A startup holds $900,000 in cash and burns $150,000 net per month. What is its runway?", "fingerprint": "8d16ac23153d2f15046c3960ac75907da1e3f2c49115c82420ef10b9293d0551", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W4-S055", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 55, "answer_slides": [ 56 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S058", "canonical_id": "W4-S058", "bank": "ef", "week": 4, "title": "A delayed collection", "prompt": "A startup begins March with $160,000 of cash and requires a $50,000 minimum cash balance. A $140,000 customer collection expected in March moves to April, while March payroll and vendor payments of $210,000 remain unchanged. Management also wants to spend $25,000 on a discretionary growth experiment in March. What minimum additional financing or cost deferral is required to maintain the cash floor and complete the experiment?", "fingerprint": "2ed23378e5e94f81d676e4d4f9ce43d46f2b5ec4237f2a2bc29a8588de6dbe7a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W4-S058", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 58, "answer_slides": [ 59, 60 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S061", "canonical_id": "W4-S061", "bank": "ef", "week": 4, "title": "The lowest cash point", "prompt": "A startup begins May with $220,000 of usable cash. Management wants to maintain at least $60,000 at the end of every month.\n\nA $150,000 customer payment expected in May has been delayed until July. The updated forecast separates that payment from other receipts:\n\n| Cash item | May | June | July |\n| --- | --- | --- | --- |\n| Other operating receipts | $40,000 | $90,000 | $210,000 |\n| Delayed customer collection | $0 | $0 | $150,000 |\n| Required cash payments | $230,000 | $170,000 | $160,000 |\n\nManagement also plans to complete a $30,000 experiment in May. Its cost is additional to the required payments in the table. Monthly depreciation of $12,000 is a noncash expense and is not included in these cash payments.\n\nAny new financing arrives before May's payments and is available throughout the forecast. Assume no financing fees, repayments, or other cash flows.\n\nWhat is the smallest financing amount that allows the company to complete the experiment and maintain the $60,000 minimum at every month-end?", "fingerprint": "2085f59d3590b63d01f4db3d72e3805089e41373a24b0de729c6911f15826238", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W4-S061", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 61, "answer_slides": [ 62 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S064", "canonical_id": "W4-S064", "bank": "ef", "week": 4, "title": "The gross funding request", "prompt": "A startup is deciding how much capital to raise before its next milestone. Its forecast shows:\n\nUsable opening cash of $430,000.\n\nCumulative net cash use of $1.48 million before reaching the milestone.\n\nA required cash balance of at least $270,000 at the milestone.\n\nThe milestone is the lowest cash point in the forecast. There are no other financing sources, and the forecast excludes fundraising transaction costs.\n\nAt the financing closing, the company must pay a $40,000 legal bill and a placement fee equal to 4% of the gross amount raised. Both costs are paid from the proceeds.\n\nWhat is the minimum gross amount the company needs to raise, rounded to the nearest $1,000?", "fingerprint": "17b11afc86effa9494fa98eb487b79b743675a75b66aecc5a7213b3e3dbbadbc", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W4-S064", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 64, "answer_slides": [ 65 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S071", "canonical_id": "W4-S071", "bank": "ef", "week": 4, "title": "Growth versus retention", "prompt": "A SaaS company begins the quarter with $120,000 of monthly recurring revenue (MRR). During the quarter, it records the following changes:\n\n| Customer activity | Effect on MRR |\n| --- | --- |\n| Expansions by customers present at the start of the quarter | Increase of $18,000 |\n| Cancellations by customers present at the start of the quarter | Decrease of $22,000 |\n| Downgrades by customers present at the start of the quarter | Decrease of $8,000 |\n| New customers acquired during the quarter | Increase of $52,000 |\n\nThe cancellation and downgrade amounts do not overlap. Assume no reactivations, foreign-exchange effects, or other changes.\n\nManagement argues that the increase in total MRR shows the existing customer base is becoming more valuable.\n\nWhat are total MRR growth and net revenue retention (NRR), and what do they indicate about the customers present at the start of the quarter? Round both percentages to one decimal place.", "fingerprint": "76b047d0b2e58eef74cc261de76541e080e18524f71eff5f6b03e45ac05211f1", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W4-S071", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 71, "answer_slides": [ 72 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S073", "canonical_id": "W4-S073", "bank": "ef", "week": 4, "title": "Revenue-basis LTV", "prompt": "A SaaS product earns $200 ARPU per month at 2% monthly churn. What is the revenue-basis LTV?", "fingerprint": "a7aca990fa4ac6e2f9eca73de81a831f1cecce54589624ede7d5627a57d9d119", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W4-S073", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S079", "canonical_id": "W4-S079", "bank": "ef", "week": 4, "title": "Stress-testing collection delays", "prompt": "Before new financing, the forecast cash low point is $260,000 at June 30. The required cash floor is $100,000. A customer payment of $200,000 expected that day could slip to July 31. All other cash flows remain unchanged; without this delay, no other date is lower.\n\nWhat is the June 30 effect, and the minimum additional cash needed to preserve the floor?", "fingerprint": "a582e39a48f4bbabc1eab75eb40dd94b5c60ca414d0ec4be9cb83421921d59ce", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W4-S079", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 79, "answer_slides": [ 80 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S081", "canonical_id": "W4-S081", "bank": "ef", "week": 4, "title": "Sensitivity and scenarios", "prompt": "How does the one-variable sensitivity method used here differ from business scenario analysis?", "fingerprint": "be0dd255e6d94e07d8cb41eb655e601cb7d8b31eb0ddc5d1a582c7a6346e7d66", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W4-S081", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 81, "answer_slides": [ 82 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S084", "canonical_id": "W4-S084", "bank": "ef", "week": 4, "title": "Timing variance", "prompt": "A customer payment expected in March arrived in April. How should variance analysis classify this?", "fingerprint": "bb11d81f5871e594a7ca749333bb8a7cfe4a7a6e0f0c0fde9f962478130c2879", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W4-S084", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 84, "answer_slides": [ 85 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S095", "canonical_id": "W4-S095", "bank": "ef", "week": 4, "title": "Annualized run rate", "prompt": "A SaaS company generated $1.5 million of revenue in its most recent month after launching a major new product. Management refers to a $18 million annual revenue run rate. Which statement best describes this figure?", "fingerprint": "37b81a385af568288fbbd2a3136828cf24a8c724eccb686266ff9ef0caae01f8", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W4-S095", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 95, "answer_slides": [ 96, 97 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S098", "canonical_id": "W4-S098", "bank": "ef", "week": 4, "title": "TTM, run rate, and NTM", "prompt": "A startup reports TTM revenue of $3 million, a current annualized run-rate of $6 million based on its strongest recent month, and management NTM revenue of $9 million. What should an investor conclude from the spread before relying on the $9 million forecast?", "fingerprint": "bc6d507f4ae577fdf7a07d4a1e96742906a721a550f0bb4d5037e918240d3805", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W4-S098", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 98, "answer_slides": [ 99, 100 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S101", "canonical_id": "W4-S101", "bank": "ef", "week": 4, "title": "Productive sales capacity", "prompt": "Four fully productive sales representatives each close three contracts per quarter at $20,000 per contract. Two additional representatives start on January 1 but require a 90-day ramp before they can close business. What bookings should the model attribute to the team during the first quarter?", "fingerprint": "9a43cdd483cfdcea6ef5771f8ba1dfeb442ba3cbaeadaa1669a4040df3771f50", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W4-S101", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 101, "answer_slides": [ 102, 103 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S104", "canonical_id": "W4-S104", "bank": "ef", "week": 4, "title": "The cash buffer", "prompt": "A startup projects $1.25 million of cumulative net burn before its next major milestone. It starts with $550,000 of cash and wants at least $300,000 remaining at the milestone. Management proposes raising $700,000 because current cash plus the raise equals projected burn. Which assessment is correct?", "fingerprint": "b2c03c78855460f7c59cd5b6fa87d5bdf375e53fb98e1b5a2ccb2a4447ce4578", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W4-S104", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 104, "answer_slides": [ 105, 106 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S107", "canonical_id": "W4-S107", "bank": "ef", "week": 4, "title": "Growth and cohort retention", "prompt": "A subscription startup reports 40% year-over-year revenue growth, but each new customer cohort loses roughly half of its recurring revenue within 12 months. Management argues that aggregate growth proves durable product-market fit. What should an analyst examine next?", "fingerprint": "dd773fae6a21000453f4757cb2a1187b6bee0f1842fb9dcfc9d482f5e8932b6f", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W4-S107", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 107, "answer_slides": [ 108, 109 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S111", "canonical_id": "W4-S111", "bank": "ef", "week": 4, "title": "TTM EBITDA", "prompt": "A company’s fiscal year ended December 31, 2025. Through June 30, 2026, it reports year-to-date EBITDA of $7.0 million. EBITDA for the first six months of 2025 was $5.5 million, and full-year 2025 EBITDA was $12.0 million. What is TTM EBITDA as of June 30, 2026?", "fingerprint": "14daec59501f91d609a5032f3094bbe3f580f8272282e4aeaa57517a9557c1e7", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W4-S111", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 111, "answer_slides": [ 112, 113 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S114", "canonical_id": "W4-S114", "bank": "ef", "week": 4, "title": "Customers lost to churn", "prompt": "A subscription business starts the year with 1,000 customers and has 2% monthly churn. Assuming no new customers are added, approximately how many of the original customers will be lost after 12 months?", "fingerprint": "2f1d3c509b847f3a773629769224b516ac90b435a5834401b1b926ee976574f3", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W4-S114", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 114, "answer_slides": [ 115 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W4-S116", "canonical_id": "W4-S116", "bank": "ef", "week": 4, "title": "Financing need", "prompt": "Cumulative net burn to the milestone is $1.8M, minimum cash is $0.45M, and cash on hand is $0.8M. What is the financing need?", "fingerprint": "e93d5a175212fb71abc9c30b1795fdaf3d0c4e7b17e9300588b279dbdedce698", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W4-S116", "locations": [ { "deck_id": "1Eur1HL-8zMAHiBxNhRnfmfW8Tll2IRlU", "deck_name": "1. Week 4 - FIN143 - Driver-Based Forecasting and Financial Modeling - SCU.pptx", "question_slide": 116, "answer_slides": [ 117 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S005", "canonical_id": "W5-S005", "bank": "ef", "week": 5, "title": "Method selection", "prompt": "A startup has a working product, a few paying customers, negative free cash flow, and little resalable equipment. Its public peers are much larger and more profitable. Which valuation approach is most defensible?", "fingerprint": "0d0e9719255c1b7ce71986b54d25421df92a3851feddea17b5b6cb60127969ec", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S005", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 5, "answer_slides": [ 6 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S008", "canonical_id": "W5-S008", "bank": "ef", "week": 5, "title": "Equity value", "prompt": "Which calculation estimates equity value when enterprise value, excess cash, and debt are known and no other claims exist?", "fingerprint": "f6d0eccb43d4dfca98358bc5a223ed359087b602404cd1326ecd5b7ee706e8e0", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W5-S008", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 8, "answer_slides": [ 9 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S011", "canonical_id": "W5-S011", "bank": "ef", "week": 5, "title": "Matching cash flow and value", "prompt": "An analyst forecasts FCFF before interest and debt repayments. WACC is 10% and the cost of equity is 14%. The company has $6M of excess cash, $18M of debt, and no other claims. Which procedure correctly estimates equity value?", "fingerprint": "f4f0f26ce169cece9126a0c9d15aa83e9c56f05cac96872efeee61bc59f767e0", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S011", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 11, "answer_slides": [ 12 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S014", "canonical_id": "W5-S014", "bank": "ef", "week": 5, "title": "FCFF", "prompt": "Assumptions: Net working capital means operating NWC, excluding excess cash and debt. Apply the 25% tax rate to EBIT.\n\nEBIT is $5M, tax rate 25%, D&A $0.8M, CapEx $1.2M, and net working capital rose $0.3M. What is FCFF?", "fingerprint": "6f7d87d99d970dd50c7c58fdc2e3c313d733f12b76eac30274b06252f730b31a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S014", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 14, "answer_slides": [ 15 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S017", "canonical_id": "W5-S017", "bank": "ef", "week": 5, "title": "Present value", "prompt": "A year-end FCFF of $1.1 million is discounted one year at 10%. What is its present value?", "fingerprint": "7999f294dfd31936f3edc5e9c2c4da9afa81fa6ba7fed0b81debee4095725c6e", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W5-S017", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 17, "answer_slides": [ 18 ], "continuation_slides": [ 19 ], "match": "stem and answer choices" } ] }, { "id": "W5-S020", "canonical_id": "W5-S020", "bank": "ef", "week": 5, "title": "Discounted prepayments", "prompt": "A software company offers a four-year service contract under two payment options:\n\nAnnual billing: The customer pays $180,000 at the end of each year for four years.\n\nPrepayment: The customer pays today and receives a 15% discount from the total undiscounted contract price.\n\nAccepting prepayment creates a one-time $12,000 processing cost today. That cost does not apply to annual billing. Service-delivery costs are $40,000 at the end of each year under either option.\n\nThe appropriate opportunity cost of capital for comparing these cash flows is 18% annually. Service obligations are identical, all payments occur as scheduled, and there are no taxes or other incremental cash flows.\n\nWhat is the incremental NPV today of accepting prepayment rather than annual billing, rounded to the nearest $100?", "fingerprint": "8fb25f94affc2d80f8d0225c374d1a61a19cc8b43c6eca22258c8360250c378e", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S020", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 20, "answer_slides": [ 21 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S023", "canonical_id": "W5-S023", "bank": "ef", "week": 5, "title": "CAPM", "prompt": "The risk-free rate is 4%, beta is 1.2, and the equity risk premium is 5%. What is the CAPM cost of equity?", "fingerprint": "70d17adfddca8a338c2b97285512d0d67f8c3acd10d0b661130d2dc3d9318f51", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W5-S023", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 23, "answer_slides": [ 24 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S025", "canonical_id": "W5-S025", "bank": "ef", "week": 5, "title": "WACC calculation", "prompt": "A company’s target financing mix is 70% equity and 30% debt, measured at market value. Its cost of equity is 14%, current pre-tax borrowing cost is 8%, and tax rate is 25%. The interest deduction is fully usable. What is WACC?", "fingerprint": "121d9f99ed36afdad0e7031e5825df97c10382caf6f15a2003c8c7616078a254", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S025", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 25, "answer_slides": [ 26 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S032", "canonical_id": "W5-S032", "bank": "ef", "week": 5, "title": "Terminal-value calculation", "prompt": "Assumptions: FCF means FCFF. Stable growth starts after Year n. All rates are annual.\n\nFinal-year FCF is $10M, WACC is 10%, and perpetuity growth is 3%. What is the terminal value at Year n?", "fingerprint": "b9aecf3ecec977fabb7164946042d56a6e4aee6407a5c0a4abd5052ee363e939", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S032", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S034", "canonical_id": "W5-S034", "bank": "ef", "week": 5, "title": "DCF and exit multiples", "prompt": "An analyst prepares a DCF for a growing company. All FCFF occurs at year-end and already reflects operating taxes and required reinvestment.\n\n| Forecast input | Year 1 | Year 2 | Year 3 |\n| --- | --- | --- | --- |\n| FCFF | $0.8 million | $1.4 million | $2.2 million |\n| EBITDA | — | — | $4.8 million |\n\nThe analyst applies a 7.5× multiple to Year 3 EBITDA to estimate terminal enterprise value at the end of Year 3. That terminal value represents operating value from Year 4 onward. WACC is 12% annually.\n\nAt today's valuation date, excess cash is $1.6 million and debt is $5.2 million. There are no other claims or nonoperating assets.\n\nWhat is equity value today, rounded to $0.01 million?", "fingerprint": "b9368a9ea242dd83204529b5654b970338dcc7de713ccc89200d4fe97c7392e4", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S034", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 34, "answer_slides": [ 35 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S036", "canonical_id": "W5-S036", "bank": "ef", "week": 5, "title": "DCF and equity value", "prompt": "An analyst values a startup immediately before any new financing. Forecast FCFF is negative $1.2 million in Year 1, positive $0.6 million in Year 2, and positive $2.4 million in Year 3. All forecast cash flows occur at year-end.\n\nYear 3 FCFF excludes one-time items and is the starting amount for the long-term forecast. From Year 4 onward, FCFF grows 3% per year forever. All FCFF amounts are after operating taxes and the reinvestment needed to support the stated growth. A 14% annual WACC is appropriate throughout the forecast.\n\nThe company has $2.1 million of cash, of which $0.8 million is required for operations and already reflected in operating value. Debt is $3.8 million. There are no other claims or nonoperating assets.\n\nWhat are enterprise value and equity value today, rounded to the nearest $0.01 million?", "fingerprint": "b3726717f0c03ac06b94af560aafe08c12a76ea8beb9e084b4a84a08a9c95626", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S036", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 36, "answer_slides": [ 37 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S041", "canonical_id": "W5-S041", "bank": "ef", "week": 5, "title": "Growth, reinvestment, and terminal value", "prompt": "A DCF's explicit forecast ends at Year 4. After-tax operating profit in Year 5, the first stable year, is $6m. Thereafter it grows 3% annually. Sustainable ROIC is 15%, WACC is 9%, and the stable reinvestment relationship applies. All cash flows are at year-end.\n\nWhat are Year 5 FCFF and terminal value at the end of Year 4?", "fingerprint": "ec65bb51b145851cbdb16a32793077ba18ae627ead66a72d1e239b66e8915eb7", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S041", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 41, "answer_slides": [ 42 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S043", "canonical_id": "W5-S043", "bank": "ef", "week": 5, "title": "Terminal-value risk", "prompt": "A model’s terminal value is most of its enterprise value. Which follow-up is appropriate?", "fingerprint": "c1b56b89337c4e473315b85f758fecd4d94f233effb94d6355fd1f7ade7cf65f", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S043", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 43, "answer_slides": [ 44 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S045", "canonical_id": "W5-S045", "bank": "ef", "week": 5, "title": "Terminal-value sensitivity", "prompt": "An analyst has already discounted a company's Year 1–3 FCFF to today at a 12% annual WACC. The combined present value is $4.8 million; this amount covers only those three years.\n\nFCFF at the end of Year 3 is $2.4 million. It excludes one-time items and is after operating taxes and required reinvestment. Use this amount as the starting point for growth from Year 4 onward.\n\nThe analyst compares two perpetual-growth assumptions, both beginning in Year 4:\n\n| Input | Base case | Sensitivity case |\n| --- | --- | --- |\n| Perpetual FCFF growth | 2% | 4% |\n| WACC | 12% | 12% |\n\nAll future FCFF occurs at year-end. Terminal value is measured at the end of Year 3 and covers Year 4 onward. Keep the Year 1–3 forecast unchanged. For this exercise, assume each scenario's future FCFF already reflects enough reinvestment to sustain its stated growth rate forever.\n\nHow much does enterprise value today increase in the sensitivity case, and what percentage of base-case enterprise value comes from the present value of terminal value? Report the increase in millions of dollars and the terminal-value share as a percentage, each to two decimal places.", "fingerprint": "d0e3bc51ab4d7f9e16e36ac71a3a2c0527804d11d31d32c7eafb099049ffad5c", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S045", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 45, "answer_slides": [ 46 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S049", "canonical_id": "W5-S049", "bank": "ef", "week": 5, "title": "Interpreting IRR", "prompt": "Why can a high IRR be hard to interpret as a realized compound return when interim distributions are material?", "fingerprint": "8cd27b746af69cddc57d4881a2ab9360c91da44420a20a0dfd39fb92939fd0be", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W5-S049", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 49, "answer_slides": [ 50 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S052", "canonical_id": "W5-S052", "bank": "ef", "week": 5, "title": "Return percentage versus value created", "prompt": "Two projects are mutually exclusive, have comparable risk, and require only an initial investment followed by one year-end receipt. Capital is available for either. Project A costs $100 and returns $140. Project B costs $1,000 and returns $1,300. The appropriate required return is 10%. Which choice maximizes value?", "fingerprint": "c6d103638c5a82e696c82db21e1e4070348cc7dbb8c996172a459d48c498ae5d", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S052", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 52, "answer_slides": [ 53 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S055", "canonical_id": "W5-S055", "bank": "ef", "week": 5, "title": "Failure risk counted once", "prompt": "In a one-year illustration, a venture pays $100M with 60% probability and $0 otherwise. Assume 20% is the appropriate discount rate for the probability-weighted payoff. Discounting the success-only $100M at 100% would produce the same value. An analyst instead discounts the expected $60M at 100%. Which assessment is correct?", "fingerprint": "ea5acd0c1184383607b40e363e8abd8368dd9bcb39f64b285a9e2e7ecf291755", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S055", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 55, "answer_slides": [ 56 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S061", "canonical_id": "W5-S061", "bank": "ef", "week": 5, "title": "P/E versus PEG", "prompt": "An analyst compares two profitable growth companies using the following information:\n\n| Input | Atlas | Beacon |\n| --- | --- | --- |\n| Current share price | $90.00 | $88.00 |\n| EPS for the most recent 12 months | $3.00 | $4.00 |\n| Forecast EPS for the following 12 months | $3.75 | $4.60 |\n| Forecast revenue growth over those following 12 months | 40% | 12% |\n\nThe EPS figures already exclude one-time gains and losses and use consistent accounting policies. No further earnings adjustments are needed. Use trailing EPS for P/E and expected EPS growth over the next 12 months for PEG.\n\nWhich answer gives the correct P/E and PEG for each company, rounded to two decimal places, and identifies the company with the lower PEG?", "fingerprint": "79802dd9c0856d774734cba2b9508f831f55ed57f5c8b56ebd7304563c6ee9a6", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S061", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 61, "answer_slides": [ 62 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S063", "canonical_id": "W5-S063", "bank": "ef", "week": 5, "title": "Comparable companies", "prompt": "Public comparables have very different growth and retention from the subject startup. What should the analyst do?", "fingerprint": "323b3fa1cd1891f2fd30e71a2f6321c271bb1db7ce43424551f0308e38d1939a", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S063", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 63, "answer_slides": [ 64 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S066", "canonical_id": "W5-S066", "bank": "ef", "week": 5, "title": "Comparable-company valuation", "prompt": "An analyst selects three public peers with similar forward growth, margins, and revenue definitions. Use the median of their enterprise-value-to-next-twelve-months-revenue multiples for this exercise.\n\n| Peer | Market value of equity | Debt | Excess cash | Next-twelve-months revenue |\n| --- | --- | --- | --- | --- |\n| A | $54 million | $8 million | $2 million | $10 million |\n| B | $74 million | $14 million | $4 million | $12 million |\n| C | $91 million | $10 million | $5 million | $12 million |\n\nThe startup has $10 million of next-twelve-months revenue, $8 million of revenue for the previous twelve months, $8 million of debt, and $4 million of cash. Of that cash, $1 million is required for operations and already reflected in enterprise value. No other claims or adjustments apply.\n\nWhat enterprise value and equity value result, rounded to the nearest $0.01 million?", "fingerprint": "858cd160cd5e7d5c41317bd0c5c63663c0423e961f57a1c70f3a96a3c69c917c", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S066", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 66, "answer_slides": [ 67 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S069", "canonical_id": "W5-S069", "bank": "ef", "week": 5, "title": "Control transactions", "prompt": "Assumptions: Relevant, reasonably comparable transactions involving acquisitions of control are available.\n\nYou are valuing a company for an acquisition of control. Which comparable set is most appropriate, and why?", "fingerprint": "ba4a92eb8889e2a8008affa2a435035fc11a6fe079ef081e63c1b03beae41e00", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W5-S069", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 69, "answer_slides": [ 70 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S072", "canonical_id": "W5-S072", "bank": "ef", "week": 5, "title": "Ownership sold", "prompt": "A venture raises $2 million at $6 million pre-money, with no other capitalization changes. What ownership is sold?", "fingerprint": "35d5cad4d3f3f6338ea72226866789f895c8f06d0785b05e4d0f96404b9c926c", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W5-S072", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 72, "answer_slides": [ 73 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S076", "canonical_id": "W5-S076", "bank": "ef", "week": 5, "title": "VC hurdle versus WACC", "prompt": "Why does the VC method discount at a target return rather than WACC?", "fingerprint": "7c3938650ec4f0ffe40a8246e1f7b3f6543f12eddbf25ab8728216e23dc0b233", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W5-S076", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 76, "answer_slides": [ 77 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S078", "canonical_id": "W5-S078", "bank": "ef", "week": 5, "title": "VC pricing with an exit-value bridge", "prompt": "A VC invests $5M and requires a 5× total investment multiple over five years. Projected exit enterprise value is $120M, exit excess cash is $10M, and exit debt is $30M. Assume no other claims, future dilution, interim distributions, or preferences. What ownership today and implied post-money equity value meet the target?", "fingerprint": "df19f23bce8d586d12b3aa7f9ec45ef42f95a3386705971eb7ed27fd6b2fad03", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S078", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 78, "answer_slides": [ 79 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S081", "canonical_id": "W5-S081", "bank": "ef", "week": 5, "title": "Ownership before dilution", "prompt": "Assumptions: 30% dilution means a 30% proportional reduction in the existing stake. The investor makes no follow-on investment.\n\nA VC needs 10% ownership at exit and expects 30% dilution before then. What ownership must they take today?", "fingerprint": "1ccf430858f98d9d3950613e1d20a40b09b8fe675a4f63bb0f322244aeb5bca3", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W5-S081", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 81, "answer_slides": [ 82 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S083", "canonical_id": "W5-S083", "bank": "ef", "week": 5, "title": "VC pricing and dilution", "prompt": "A VC considers investing $4 million today. The investor requires a 40% annual compound return over five years and receives no cash distributions before exit.\n\nAt the end of Year 5, the assumed sale enterprise value is $150 million. Debt is expected to be $15 million and excess cash $5 million. No other claims or sale costs apply. The investment converts into common equity at exit with no preferential payout.\n\nTwo later financings will reduce the investor's ownership percentage by 20% and then by another 10%, each relative to the percentage immediately before that financing. The investor will not participate in either round. Use the stated exit scenario and return requirement consistently, without an additional probability adjustment.\n\nWhat initial ownership and corresponding pre-money valuation meet the investor's return requirement?", "fingerprint": "4b6cc686e88bc3047de112d31c87e369dda64391bbf67ff63cc16a885dab0ca3", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S083", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 83, "answer_slides": [ 84 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S087", "canonical_id": "W5-S087", "bank": "ef", "week": 5, "title": "Founder proceeds", "prompt": "Assumptions: Exit means net equity proceeds. The preference is uncapped; founders own the other 80%. No other claims, dividends, fees, or dilution apply.\n\nOn a $30M exit, a $5M investor at $20M pre (20%) holds a 2x participating preference. What do founders receive?", "fingerprint": "424633e7569d799d6e1b27b7ecf8f550afd872ea77f367d33cf70dbc661f539d", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S087", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 87, "answer_slides": [ 88 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S091", "canonical_id": "W5-S091", "bank": "ef", "week": 5, "title": "Reconciling valuation ranges", "prompt": "For the same company, date, currency, and enterprise-value basis, a DCF indicates $30M–$45M while trading comparables indicate $60M–$80M. What is the strongest next step?", "fingerprint": "c6b1a92c7d9f38abd6365a357df89e5ef8bd0e1ff7cadccf13e298a1b1d4e065", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S091", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 91, "answer_slides": [ 92 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S094", "canonical_id": "W5-S094", "bank": "ef", "week": 5, "title": "Reconciling DCF and comps", "prompt": "A startup's DCF indicates enterprise value of $28–34 million. Applying public-peer revenue multiples produces $40–52 million. Both analyses use the same valuation date, currency, and forward-revenue period.\n\nThe startup's net revenue retention is 95% and gross margin is 60%, compared with 125% and 80% for the peers. The DCF also assumes rapid revenue growth with almost no increase in annual capital spending or investment in operating working capital. Neither the retention gap nor the margin gap is expected to disappear during the forecast.\n\nThe founder proposes using the midpoint of the combined enterprise-value range as the starting point for financing negotiations. Before recommending a valuation range, which approach best addresses the evidence?", "fingerprint": "c0f5d4dab0cb426da887f0b7301ebbd4160b55533febf095352da7f375c2989c", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S094", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 94, "answer_slides": [ 95 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S096", "canonical_id": "W5-S096", "bank": "ef", "week": 5, "title": "Valuation-method judgment", "prompt": "An investment committee reviews two companies:\n\nEach comparison uses the same valuation date, currency, and definition of enterprise or equity value. The committee wants a defensible price recommendation, not simply the highest model output.\n\nWhich recommendation best accounts for the strengths and limitations of the evidence?\n\n| Company | Operating evidence | Valuation evidence |\n| --- | --- | --- |\n| Launchly | Negative EPS in the latest year and throughout the forecast period; the company generates revenue, but the timing of profitability is uncertain. | Revenue comps and a DCF produce similar enterprise-value ranges. The DCF's terminal value uses the same peer revenue multiple as the comps analysis. |\n| Harbor | Positive EPS after excluding one-time items, with further EPS growth expected; greater operating risk and heavier reinvestment needs than peers. | Harbor's PEG is 0.85 versus a peer median of 1.30, measured using consistent earnings bases and growth horizons. |", "fingerprint": "eb3194412156c7ecba75385e28314c42b8593f3c1352ea4e08a46c370ba73254", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S096", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 96, "answer_slides": [ 97 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S100", "canonical_id": "W5-S100", "bank": "ef", "week": 5, "title": "Full DCF and equity bridge", "prompt": "Year-end FCFF is $2M in Year 1 and $3M in Year 2. An 8.0× exit EV/EBITDA multiple applies to Year 2 EBITDA of $5M. It estimates terminal EV at the end of Year 2, covering cash flows from Year 3 onward. WACC is 10%. Excess cash today is $4M and debt is $10M, with no other claims. What is equity value today, rounded to two decimals?", "fingerprint": "857192d0ef06cfe16c07f1cb5fbb14da7d44d081acde1c76ee42c3a84aed57b6", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W5-S100", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 100, "answer_slides": [ 101 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S102", "canonical_id": "W5-S102", "bank": "ef", "week": 5, "title": "Comparable multiple and equity bridge", "prompt": "After analyzing comparable companies, you select 4.0× next-twelve-month revenue. The startup’s next-twelve-month revenue is $12M, trailing revenue is $8M, excess cash is $3M, and debt is $7M. The multiple is an enterprise-value multiple and no other claims exist. What is the indicated equity value?", "fingerprint": "d702e3747108298cd508661f724436df55b7572224c2ff76de51c92f2b5f3264", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S102", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 102, "answer_slides": [ 103 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S104", "canonical_id": "W5-S104", "bank": "ef", "week": 5, "title": "Expected value", "prompt": "Assumptions: All values are today’s equity values for the same claim. Scenarios are mutually exclusive and exhaustive.\n\nScenarios: failure 20% at $0, downside 25% at $15M, base 35% at $50M, upside 20% at $120M. What is the expected value?", "fingerprint": "0f70e7c8ebca5a69ea56876665a06f2a31047e2d8b7da44cd2ea1c6cfe6b25d7", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W5-S104", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 104, "answer_slides": [ 105 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S107", "canonical_id": "W5-S107", "bank": "ef", "week": 5, "title": "The three approaches", "prompt": "For an early-stage venture, how do the three master approaches fit together?", "fingerprint": "358cd4a38047de8f66ed70873600380ac923d2cf6fa3669969c2ceecea2ebac7", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W5-S107", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 107, "answer_slides": [ 108 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S109", "canonical_id": "W5-S109", "bank": "ef", "week": 5, "title": "Terminal value as a share of EV", "prompt": "A DCF has $10M of present value from explicit forecast FCFF and $30M of present value from terminal value. Which interpretation is correct?", "fingerprint": "e83a25da26b92db983dc0654fdc698e3e5e4e06d42be752f4e4d6ea8d66a3580", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W5-S109", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 109, "answer_slides": [ 110 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W5-S111", "canonical_id": "W5-S111", "bank": "ef", "week": 5, "title": "Historical stage-risk interpretation", "prompt": "In Bhagat’s (2014) model, what can happen to the return applied to success-case proceeds as the probability of success increases, holding other assumptions constant?", "fingerprint": "8fccd9953e291f5a4c2c21a1702d02127b02820eb484ecf60a4b9050d1325221", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W5-S111", "locations": [ { "deck_id": "1U5EPjtoyekQ3UfkhyH4idnM_YDdcJFwh", "deck_name": "1. Week 5 - FIN143 - Valuation Methods and Venture Pricing - SCU.pptx", "question_slide": 111, "answer_slides": [ 112 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S005", "canonical_id": "W6-S005", "bank": "ef", "week": 6, "title": "Issued and fully diluted ownership", "prompt": "A founder owns 3.6M of 6M issued shares. The agreed fully diluted count also includes 0.6M granted options and a separate 1.4M ungranted reserve. Which ownership pair is correct?", "fingerprint": "00eef4dd799ea8326fa56d289acc551758655f2cd8ab2f4dfa058be9b20ee02c", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S005", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 5, "answer_slides": [ 6 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S008", "canonical_id": "W6-S008", "bank": "ef", "week": 6, "title": "Financing price and share count", "prompt": "Assumptions: The pricing model has 6M issued shares plus 2M included option rights and reserve shares. Total authorization is 10M. Use the stated fully diluted pricing basis.\n\nA company is worth $12 million in equity value and has 8 million fully diluted shares. What is the per-share price?", "fingerprint": "c110066a4d78c9d2ee0b70aae6ac4887c3ad87241ad6d4a4a8403488911ba9c5", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S008", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 8, "answer_slides": [ 9 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S011", "canonical_id": "W6-S011", "bank": "ef", "week": 6, "title": "Issued and fully diluted ownership", "prompt": "Before a financing, a company has the following capitalization:\n\n| Security or reserve | Shares or common-equivalent shares |\n| --- | --- |\n| Founder common shares, issued | 6,000,000 |\n| Seed preferred shares, issued and convertible 1:1 | 2,000,000 |\n| Granted but unexercised employee options | 750,000 |\n| Ungranted option reserve | 750,000 |\n| Unexercised warrants | 500,000 |\n\nThe charter authorizes 20 million shares. The parties price a $5 million primary investment at a $20 million pre-money valuation using all five rows in the fully diluted denominator. Count each instrument at its stated share amount. Ignore any cash the company could receive from exercising options or warrants; do not reduce their share counts for such proceeds.\n\nNo existing instrument is exercised or converted at closing, and no pool change occurs. New investors receive newly issued shares, each representing one common-equivalent share. For issued ownership, use common-equivalent issued shares only.\n\nWhat are the price per new share and the founders' post-financing fully diluted and issued ownership percentages?", "fingerprint": "c349a82842c91087879930c7a2552e41e72c73e5e7d477349cae2f07aff190a1", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S011", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 11, "answer_slides": [ 12 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S014", "canonical_id": "W6-S014", "bank": "ef", "week": 6, "title": "Ownership and board rights", "prompt": "Founders own 70% of the shares. They designate two directors, investors designate two, and one is independent. A budget requires three of five director votes and no separate stockholder consent. The founder nominees vote yes and investor nominees vote no. Which conclusion follows?", "fingerprint": "142801b7212db4850fff3c8db094a3309c117d1d194680ebd28e067675e34742", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S014", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 14, "answer_slides": [ 15 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S017", "canonical_id": "W6-S017", "bank": "ef", "week": 6, "title": "Two preferred series", "prompt": "Assumptions: No debt, fees, dividends, or other claims. Series B closed after Series A.\n\nSeries A has a $2M preference claim and Series B a $1M claim. Both stay preferred. The charter ranks them equally and allocates insufficient proceeds in proportion to their preference claims. How should $2.4M available to equity be allocated?", "fingerprint": "a13d8b7ccb5e259c5072cc2c9e6051fc720760bc7b0e35ff46c60faf6db79327", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S017", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 17, "answer_slides": [ 18 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S020", "canonical_id": "W6-S020", "bank": "ef", "week": 6, "title": "Participation and common proceeds", "prompt": "Assumptions: Compare ordinary uncapped participating and nonparticipating preferred with the same investment, ownership, and 1x preference.\n\nHow does participating preferred differ from nonparticipating preferred for the common holders?", "fingerprint": "28dcf43495890812d1fd09cd7ab2a8537e93ca2ed98957a6444aeea9330adb15", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W6-S020", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 20, "answer_slides": [ 21 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S023", "canonical_id": "W6-S023", "bank": "ef", "week": 6, "title": "Participating exit proceeds", "prompt": "Assumptions: The $20M is available to equity after other claims. One preferred series, uncapped participation, common owns the remaining 75%, and no dividends.\n\nA $5M investor holds 25% via 1x participating preferred. At a $20M exit, what do common holders receive?", "fingerprint": "568312a1d32eeee3b7da1c1aeba2fec3c363d00698a748e91060026cfd5e3389", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S023", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 23, "answer_slides": [ 24 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S026", "canonical_id": "W6-S026", "bank": "ef", "week": 6, "title": "Capped participating preferred", "prompt": "An investor paid $4 million for preferred shares representing 25% ownership on an as-converted basis. The shares have a 1× participating liquidation preference, with total proceeds under the preferred payout capped at 2× the original investment.\n\nAfter the investor receives its initial preference, it participates in the remaining proceeds at 25% until the total payout cap is reached. The investor may instead convert fully to common and receive 25% of the entire equity distribution; the participation cap does not apply after conversion.\n\nConsider two independent exits: one leaves $20 million available to equity and the other leaves $44 million. Both amounts are after debt, transaction costs, and all other claims. There are no other preferred securities.\n\nWhat payout will the investor elect at each exit?", "fingerprint": "d491a23078fe695499544c9a0475092340e0079317b3ac9e2ae3d6268af4ad35", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S026", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 26, "answer_slides": [ 27 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S029", "canonical_id": "W6-S029", "bank": "ef", "week": 6, "title": "A delayed priced round", "prompt": "A company issued a convertible note and an unmodified YC post-money SAFE. The note reaches its contractual maturity before the next priced financing. Which assessment is correct?", "fingerprint": "cdbf67402e1d85e4ce00193825ebaa62434adcf3a7975f310a08b771610c0416", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W6-S029", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 29, "answer_slides": [ 30 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S032", "canonical_id": "W6-S032", "bank": "ef", "week": 6, "title": "Cap versus discount", "prompt": "A note uses the lower of its cap price and discounted round price. The new-round price is $2.00, the discount is 25%, and the cap price is $1.80. Which conversion price follows the agreement?", "fingerprint": "a9d1f569357b3469397de9484fffb3d9ff375d42a96686e5fe4b06090c6ecda8", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S032", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S035", "canonical_id": "W6-S035", "bank": "ef", "week": 6, "title": "SAFE financing sequence", "prompt": "A company issues a second YC-style post-money valuation-cap SAFE and later raises a priced equity round. The cap price governs both SAFEs, and the option pool does not change. Which sequence correctly describes dilution?", "fingerprint": "23ec6f8a188d50c1cc39b102fff984282e1dd161d025f4cf0b27032416b12d9e", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S035", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 35, "answer_slides": [ 36 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S038", "canonical_id": "W6-S038", "bank": "ef", "week": 6, "title": "Post-money SAFEs", "prompt": "Founders initially own all of a company's shares. It then issues two post-money SAFEs:\n\nSAFE A: $600,000 invested at a $6 million post-money valuation cap.\n\nSAFE B: $400,000 invested at an $8 million post-money valuation cap.\n\nBoth SAFEs convert at their valuation caps. The share count used to apply each cap includes shares from both SAFE conversions, but excludes the new priced-round shares and the later option reserve. Neither SAFE has a discount or interest. No other securities or option reserve exist before these transactions.\n\nThe priced-round investor then receives newly issued shares representing 20% of the company immediately after that investment. Afterward, a new option reserve is created equal to 10% of the final fully diluted capitalization, diluting every then-existing holder proportionately.\n\nWhat are the founders', SAFE A's, and SAFE B's final fully diluted ownership percentages?", "fingerprint": "56744b206b60b706ecf2c617581cd5a9fe2438f736427951a0dfc940f4a09096", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S038", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 38, "answer_slides": [ 39 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S043", "canonical_id": "W6-S043", "bank": "ef", "week": 6, "title": "Convertible-note conversion", "prompt": "A company has 4 million founder shares and 1 million seed-investor shares, all on a 1:1 common-equivalent basis. It has no options, warrants, or other convertibles except the note described below.\n\nA financing raises $3 million at a fixed price of $3.00 per share. The price was negotiated using a $15 million valuation of the existing 5 million shares and excludes the converting note; it will not be recalculated after conversion.\n\nAt closing, the note has been outstanding for 18 months. It has $900,000 principal and accrues 8% annual simple interest; no interest has been paid in cash. Principal and accrued interest both convert at the lower of:\n\nA 20% discount to the financing price; or\n\nA $10 million valuation cap divided by the existing 5 million shares.\n\nThe discount is not applied again to the cap price. All newly issued and converting shares count one-for-one as common-equivalent shares.\n\nHow many shares does the note receive, and what is the founders' ownership percentage immediately after both the note conversion and the new investment?", "fingerprint": "f2927f1c63917e2c265df8d68317a466e23b7dfe177af2940214732a09961456", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S043", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 43, "answer_slides": [ 44 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S046", "canonical_id": "W6-S046", "bank": "ef", "week": 6, "title": "Preference amount and denominator", "prompt": "Assumptions: The note contains $500K original principal and $40K accrued interest. Measure the effective preference multiple against original cash invested.\n\nA $500K note converts to 360,000 shares priced at $1.50, but those shares carry a $2.00 liquidation preference. What is the effective preference multiple?", "fingerprint": "fdd2976b3bc1857a94b2d5dd6dd607a101b763097d8a3454a47d4d9b18b1745a", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S046", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 46, "answer_slides": [ 47 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S049", "canonical_id": "W6-S049", "bank": "ef", "week": 6, "title": "Conversion terms and preference", "prompt": "Founders want to preserve a note holder's agreed conversion share count but limit its aggregate liquidation preference to the converting balance. Which negotiated term accomplishes both?", "fingerprint": "5979160333cdb9b1b817e9a771c8b7f2408c0397adaff0e13c1ee93af41c4508", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S049", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 49, "answer_slides": [ 50 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S053", "canonical_id": "W6-S053", "bank": "ef", "week": 6, "title": "Option-pool pricing", "prompt": "Assumptions: Hold pre-money valuation and new cash fixed. Include the pool increase in the pricing capitalization. No convertibles or special protection rights alter the allocation.\n\nAn investor requires the new option pool to be created pre-money. What is the effect on the founders?", "fingerprint": "be6b09909ed483e621c11a518b52b6979898d18152b55d309e9b0e6da5492b5d", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S053", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 53, "answer_slides": [ 54 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S057", "canonical_id": "W6-S057", "bank": "ef", "week": 6, "title": "The option-pool top-up", "prompt": "A startup has the following pre-financing fully diluted capitalization:\n\n| Holder or reserve | Shares |\n| --- | --- |\n| Founders | 6,000,000 |\n| Seed investors | 2,000,000 |\n| Granted options | 500,000 |\n| Ungranted option reserve | 500,000 |\n\nThe proposed financing has three terms:\n\nNew investment: $6 million at an $18 million pre-money valuation.\n\nThe ungranted reserve alone must equal 12.5% of fully diluted shares immediately after closing. Granted options do not count toward this target.\n\nAny additional reserve is created before the investment and included in the share count used to price the new shares.\n\nAll shares and options count one-for-one as common-equivalent shares. There are no other securities, conversions, exercises, or transactions. The listed amounts remain unchanged except for the required reserve increase.\n\nHow many additional shares must be added to the ungranted reserve, and what will the founders' fully diluted ownership percentage be after closing? Round ownership to two decimal places.", "fingerprint": "8d3ed745820a3ed7268ac41fd728cdeaa00dc2c880d41cdda853d5cedb6cc98b", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S057", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 57, "answer_slides": [ 58 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S061", "canonical_id": "W6-S061", "bank": "ef", "week": 6, "title": "Ownership after new cash", "prompt": "Before a priced round, the agreed capitalization contains 9M common equivalents excluding one SAFE, including 5M founder shares. A $1M YC-style post-money SAFE has a $10M cap, which governs conversion. New cash investors receive 20% of post-closing ownership. With no other capitalization changes, what do founders and SAFE holders own after closing?", "fingerprint": "c340f67ca7555747fc23c320ddd2b55c6b8f955ed56fd2c478cb539763548a88", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S061", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 61, "answer_slides": [ 62 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S064", "canonical_id": "W6-S064", "bank": "ef", "week": 6, "title": "Full-ratchet adjustment", "prompt": "Assumptions: The lower-price issuance triggers the full-ratchet clause. No exception or waiver applies.\n\nIn a down round, how does full-ratchet antidilution treat the earlier investor's conversion price?", "fingerprint": "513b5e17ad93cb19d767adcb7062ed41e838fd5abab7d6260a4f000e1c1b6fac", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W6-S064", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 64, "answer_slides": [ 65 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S067", "canonical_id": "W6-S067", "bank": "ef", "week": 6, "title": "A small down round", "prompt": "Assumptions: Compare separate otherwise identical cases. No waiver or exception applies.\n\nAn earlier preferred series has a $2 conversion price. A small covered financing issues only 10,000 shares at $1. How does full ratchet differ from weighted-average protection?", "fingerprint": "2025f2840a8a1568a91258ccd6ae759eede0905a5e0fb548ae08be3bc31d5c0c", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S067", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 67, "answer_slides": [ 68 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S070", "canonical_id": "W6-S070", "bank": "ef", "week": 6, "title": "An unused pro-rata right", "prompt": "An investor has a pro-rata purchase right but no financing veto. The company makes the required offer, and the investor declines before the offer expires. What follows?", "fingerprint": "d45cc7398f73ba6b71770cb62d590a69f313292bd2c805559965f2b9c37cd492", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W6-S070", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 70, "answer_slides": [ 71 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S073", "canonical_id": "W6-S073", "bank": "ef", "week": 6, "title": "A pro-rata check changes the round size", "prompt": "An existing investor owns 15% on the agreed fully diluted basis. New outside investors will contribute exactly $3.4m in a primary round. The existing investor may invest an additional amount at the same share price to preserve its 15%. No options, conversions, or other capitalization changes occur.\n\nHow much must the existing investor contribute?", "fingerprint": "ffe6811fc3bc8c08c773eef05e8202a94b55e75d54451a547d8473243d5234d9", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S073", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S076", "canonical_id": "W6-S076", "bank": "ef", "week": 6, "title": "Sale approvals", "prompt": "A sale requires board approval and consent from holders of a majority of preferred shares. The drag-along activates only after both. The board votes 4–1 for the sale, including the preferred investor's nominee. No preferred-stockholder vote or written consent has occurred. What remains necessary before invoking the drag-along?", "fingerprint": "21b142cd8251c4e0e3aac8f5f306b8520b1ebab528227e407e74d76becc8a585", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S076", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 76, "answer_slides": [ 77 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S079", "canonical_id": "W6-S079", "bank": "ef", "week": 6, "title": "Vesting after the cliff", "prompt": "A founder receives 4.8M shares. Vesting is 25% at month 12, then 1/48 of the original grant each month. The founder leaves immediately after month 18 vesting. The company exercises its right to repurchase all unvested shares at cost. No acceleration applies. How many shares does the founder retain?", "fingerprint": "b62903eba711f6ee4dedc6141929035bd2e3b58d15a332552ca6b24cb22225be", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S079", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 79, "answer_slides": [ 80 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S082", "canonical_id": "W6-S082", "bank": "ef", "week": 6, "title": "Restricted stock election", "prompt": "A founder receives eligible substantially nonvested stock today. The first vesting date is next year. Which action and effect correctly describe a section 83(b) election?", "fingerprint": "f0b8f6ed3d9b7305135b447a70e188c12b9631ae7cb97c58a5cbdc74af59b7a9", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W6-S082", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 82, "answer_slides": [ 83 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S084", "canonical_id": "W6-S084", "bank": "ef", "week": 6, "title": "Founder exit proceeds", "prompt": "Founders own all of a company before choosing between two financing offers. Each investor provides $4 million of new primary capital.\n\n| Term | Offer A | Offer B |\n| --- | --- | --- |\n| Pre-money valuation | $16 million | $20 million |\n| Liquidation preference | 1× nonparticipating | 2× uncapped participating |\n| Participation after preference | None; investor may convert | Investor shares in the remainder at its as-converted ownership |\n\nThere are no options, convertibles, later rounds, dividends, or additional preferences. Under either offer, the company is later sold for an enterprise value of $24 million. At that time it has $4 million of debt, $2 million of transaction costs, and no excess cash. Compare that same exit under each offer.\n\nWhat would the founders receive under Offers A and B, respectively, rounded to the nearest $0.01 million?", "fingerprint": "3187d82f2c74666e5610f76fd00eeec6cebece88785ba1f0ba44cbbe0212e089", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S084", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 84, "answer_slides": [ 85 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S088", "canonical_id": "W6-S088", "bank": "ef", "week": 6, "title": "Pre-money and post-money", "prompt": "Assumptions: One primary cash financing. No converting instruments, pool changes, secondary sales, or other capitalization adjustments.\n\nAn investor puts $4M into a company at a $16M pre-money valuation. What percentage does the investor own?", "fingerprint": "6aa4f44508eee386e65519138fdefab2fdc1999ff7908e62f4fa204325f7bfe5", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W6-S088", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 88, "answer_slides": [ 89 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S090", "canonical_id": "W6-S090", "bank": "ef", "week": 6, "title": "Participation cap and conversion", "prompt": "Assumptions: One preferred series. No debt, fees, dividends, or other claims.\n\nAn investor paid $3M for 25% ownership with 1x participating preferred and a 2x total participation cap. It may instead convert to common. At an exit with $32M available to equity, which payout should it choose?", "fingerprint": "76b1bed84337ee8e29d21d271e9a9ccc290681c419fac3c5b88ea365d230c432", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S090", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 90, "answer_slides": [ 91 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S092", "canonical_id": "W6-S092", "bank": "ef", "week": 6, "title": "Note conversion and founder ownership", "prompt": "Assumptions: Same founder shares, note balance, discount, headline pre-money, and new cash. No other securities. Fixed pre-money sets price from existing shares. Fixed post-money instead preserves the incoming investor's cash / (pre-money + cash) ownership.\n\nCompared with the fixed pre-money method, the fixed post-money conversion method does what to founders?", "fingerprint": "896a3258012f8e212f22739719fc4b78e1e49e141cb346d301bcdda48e99a861", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S092", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 92, "answer_slides": [ 93 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S094", "canonical_id": "W6-S094", "bank": "ef", "week": 6, "title": "Ownership after two rounds", "prompt": "Assumptions: No pool increase, conversion, or other capitalization change.\n\nA founder owns 75% before two financings. The rounds dilute existing holders by 20% and then 25%. The founder does not invest, sell, or receive new shares. What percentage remains?", "fingerprint": "649ac864cccf969fac144c34e1f27db742257374843d8bc55d29732347a83d2e", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W6-S094", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 94, "answer_slides": [ 95 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S096", "canonical_id": "W6-S096", "bank": "ef", "week": 6, "title": "Financing packages and founder proceeds", "prompt": "Assumptions: One preferred series in each alternative. No debt, fees, dividends, options, or other claims.\n\nEach offer invests $4M. Founders own the remaining shares.\n\n| Offer | Pre-money value | Investor ownership | Preference |\n| --- | --- | --- | --- |\n| A | $16M | 20% | 1x nonparticipating |\n| B | $36M | 10% | 2x uncapped participating |\n\nAt an exit with $12M available to equity, which statement is correct?", "fingerprint": "d62411c6297120a64454e5736f785a332a24d6d5d285e962cfa67d58596604f2", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W6-S096", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 96, "answer_slides": [ 97 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S099", "canonical_id": "W6-S099", "bank": "ef", "week": 6, "title": "Uncapped participation and conversion", "prompt": "Assumptions: One ordinary uncapped participating series with positive preference and ownership between 0% and 100%. No special conversion requirements.\n\nOn plain uncapped participating preferred, why is conversion usually economically unattractive in an acquisition?", "fingerprint": "ccdbfa9cf8ed09f4dbc3b58b835867bbbda12515f45b40955821ab9d265fca5f", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S099", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 99, "answer_slides": [ 100 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S102", "canonical_id": "W6-S102", "bank": "ef", "week": 6, "title": "Weighted-average denominator", "prompt": "An earlier series has a $4 conversion price. A covered round sells 2M shares for $4M. Use CPnew = CPold × (A + B) / (A + C), with B = 1M and C = 2M. Which prices result from A = 18M versus A = 8M?", "fingerprint": "d0a48c634e14e5b8e4dfd2abbedd96fb2346c780df62019ef4eec686d6111f70", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W6-S102", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 102, "answer_slides": [ 103 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W6-S106", "canonical_id": "W6-S106", "bank": "ef", "week": 6, "title": "QSBS holding period", "prompt": "An eligible individual sells otherwise qualifying QSBS acquired after July 4, 2025 after holding it for three and a half years. Under the rules reviewed in September 2026, which statement is correct?", "fingerprint": "a811c6c40549c09e35f84e05ebf9b2c5add27fc63bcad7459f8fc944b2fbc8c4", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W6-S106", "locations": [ { "deck_id": "16f5POwltbFZYj5b_4AHyViMJ84zF8N01", "deck_name": "1. Week 6 - FIN143 - Equity Valuation, Cap Tables, and Deal Terms - SCU.pptx", "question_slide": 106, "answer_slides": [ 107 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S006", "canonical_id": "W7-S006", "bank": "ef", "week": 7, "title": "classify the investment", "prompt": "An investor buys a 15% stake in a young software company to fund growth. No acquisition debt is used. Which classification is best supported?", "fingerprint": "15b21947f5e9115edd671ac8a4d009f8c51ce5d60f0ed6bb2b97416824469ce9", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S006", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 6, "answer_slides": [ 7 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S010", "canonical_id": "W7-S010", "bank": "ef", "week": 7, "title": "follow the money through the entities", "prompt": "Assumptions: Use the taught structure; carry goes directly to the GP, with no separate carry vehicle.\n\nA fund buys startup shares, pays a management fee, and later allocates carry. Which mapping correctly identifies the investment owner, fee recipient, and carry recipient?", "fingerprint": "bc3034128dee2f00218806f51472d3fce92d4826e31380ff723c91d69567d507", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S010", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 10, "answer_slides": [ 11 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S014", "canonical_id": "W7-S014", "bank": "ef", "week": 7, "title": "annual management fee", "prompt": "A $500M fund charges a 2% annual management fee on committed capital. What is the annual fee?", "fingerprint": "20062de0759a7a81935de563221bfbfcb296425207725ebb242e84e00b2d7094", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W7-S014", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 14, "answer_slides": [ 15 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S016", "canonical_id": "W7-S016", "bank": "ef", "week": 7, "title": "capital available to invest", "prompt": "Assumptions: No other calls, distributions, recycling, or commitment changes.\n\nLPs commit $120 million and fund a $45 million call. The fund invests $42 million and pays $3 million of fees and expenses. What are paid-in capital and uncalled commitments?", "fingerprint": "9f9e40c253fff4cd0e0a2a4d1085fc827d468ff54ae1ee87ee8d95d98ac8a427", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S016", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 16, "answer_slides": [ 17 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S019", "canonical_id": "W7-S019", "bank": "ef", "week": 7, "title": "manager incentives", "prompt": "Assumptions: Both fee schedules are in effect for a full year, without offsets or waivers.\n\nA manager raises a $200 million successor fund after a $100 million fund. Each charges 2% annually on commitments. Comparing their initial annual fee streams, which conclusion is supported before investment results are known?", "fingerprint": "c023a20e1909c883e9e1daabcfacdfc889a33849caeed2da9d8cd36e5ccd298c", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S019", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 19, "answer_slides": [ 20 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S022", "canonical_id": "W7-S022", "bank": "ef", "week": 7, "title": "identify the correct waterfall", "prompt": "A startup is sold. Its preferred shareholders first receive proceeds under the company’s charter. The VC fund then allocates its receipts to LPs and the GP. Which statement is correct?", "fingerprint": "78d8bbc6fa74de9ba05bb6af758b0c3515f558770516a9ad4d6dd33828492371", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S022", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 22, "answer_slides": [ 23 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S024", "canonical_id": "W7-S024", "bank": "ef", "week": 7, "title": "carry on profit", "prompt": "Assumptions: The $100M is entirely LP paid-in capital; $300M is distributable proceeds. No fees, taxes, GP capital, or interim distributions.\n\nA $100M fund returns $300M with no preferred return. Using a 20% carry, how much does the GP receive?", "fingerprint": "6c3d4d8fc412d10f049c4408ec1e478716e48170febd70793cdd337daa9d7df5", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W7-S024", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 24, "answer_slides": [ 25 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S028", "canonical_id": "W7-S028", "bank": "ef", "week": 7, "title": "what does the preferred return promise?", "prompt": "Assumptions: All investments realized; distribute all available cash; no fees, taxes, GP capital, or guarantees.\n\nLPs contribute $100 million at the start of a fund. Exactly one year later, only $106 million is available. Capital is returned first, then an 8% preferred return, then carry. What happens?", "fingerprint": "30ac32cf7062582db9cb5c76a3edc6905e72a5d90080c4b076f687e2521fd340", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S028", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 28, "answer_slides": [ 29 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S032", "canonical_id": "W7-S032", "bank": "ef", "week": 7, "title": "apply all four tiers", "prompt": "Assumptions: Return LP capital first; no fees, taxes, GP capital, or interim distributions.\n\nLPs contribute $120m at time zero. At year one, $150m is distributable: capital first, 10% preference, 100% GP catch-up, then 80% LP / 20% GP. Which catch-up amount and final totals are correct?", "fingerprint": "f1dd69aeab029566aecb8762fb444bcf995f541bdb633beff0b74d8a08fd8668", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S032", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S035", "canonical_id": "W7-S035", "bank": "ef", "week": 7, "title": "Preferred return and full catch-up", "prompt": "A fund has the following cash timeline:\n\n| Date | Event |\n| --- | --- |\n| Start of Year 1, time 0 | LPs contribute $60 million |\n| Start of Year 2, time 1 | LPs contribute another $40 million |\n| End of Year 3, time 3 | Fund has $136 million available for its final distribution, after fees and expenses but before GP carry |\n\nThere are no interim distributions or GP capital contributions. The whole-fund waterfall applies in this order:\n\nReturn all $100 million of LP capital.\n\nPay LPs an 8% annually compounded preferred return on each contribution, measured from its contribution date to time 3.\n\nPay 100% to the GP until GP carry equals 20% of cumulative distributed profit.\n\nSplit remaining profit 80% to LPs and 20% to the GP.\n\nFor the catch-up test, distributed profit includes LP preferred return and GP catch-up, but excludes returned capital.\n\nWhat are the LP preferred return in tier 2 and the amount paid specifically in the GP catch-up tier? Round to $0.001 million.", "fingerprint": "676b4e0881d41d7e31091917327bc273fe1ef7c75afa3fe72d5685cc9e026546", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S035", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 35, "answer_slides": [ 36 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S038", "canonical_id": "W7-S038", "bank": "ef", "week": 7, "title": "incomplete catch-up", "prompt": "Assumptions: No fees, taxes, GP capital, guarantees, or interim distributions.\n\nLPs contribute $80m at time zero. At year one, final proceeds are $89.2m. Capital comes first, then a 10% preference, then 100% GP catch-up toward 20% carry. How is the cash allocated?", "fingerprint": "91a876ca7dd6f6d9d944b8c923fd1e8015dd4eb1ad2828a019b8fa8489c15041", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S038", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 38, "answer_slides": [ 39 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S041", "canonical_id": "W7-S041", "bank": "ef", "week": 7, "title": "Partial GP catch-up", "prompt": "LPs contribute $100 million at inception. At the end of Year 2, the fund has $120 million available for its final distribution, after fees and expenses but before GP carry. There are no interim distributions or GP capital contributions.\n\nApply the waterfall in this order:\n\n| Tier | Allocation and stopping rule |\n| --- | --- |\n| 1. Return capital | Pay LPs their $100 million contribution. |\n| 2. Preferred return | Pay LPs the preferred return accrued at 8% annually, compounded for two years on their original $100 million contribution. |\n| 3. Catch-up | Allocate each dollar 80% to the GP and 20% to LPs until GP carry equals 20% of cumulative distributed profit. |\n| 4. Residual | Split later profit 80% to LPs and 20% to the GP. |\n\nFor the catch-up test, distributed profit includes the preferred return and all profit paid during catch-up, but excludes returned capital. Stop when cash is exhausted; an unfinished tier does not create an additional payment obligation.\n\nWhat are final GP carry and total LP distributions, rounded to $0.001 million?", "fingerprint": "ff25b7c53f36ef45dc95df1574209a6190a8438a4f41acc8f041d11ae594e897", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S041", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 41, "answer_slides": [ 42 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S044", "canonical_id": "W7-S044", "bank": "ef", "week": 7, "title": "same final split, different protection", "prompt": "Assumptions: No fees, taxes, GP capital, or other differences.\n\nTwo funds receive $100m at time zero and distribute only at year one. Both return capital first and charge 20% carry. One has no preference; the other has an 8% preference and 100% GP catch-up. Compare GP carry at final proceeds of $120m and $105m.", "fingerprint": "112a32f5ea1e8045ea2dcf743437416535631270dc1e7ab4263c3f7f0d6b16b5", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S044", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 44, "answer_slides": [ 45 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S048", "canonical_id": "W7-S048", "bank": "ef", "week": 7, "title": "calculate the carry true-up", "prompt": "Assumptions: No fees, preferred return, taxes, or GP capital; full fund-level clawback with no cap or collectability issue.\n\nLPs invest $50 million in each of two deals. A exits for $100 million and the GP receives $10 million carry. B later exits for $20 million. Final carry is 20% of total fund profit. How much carry must the GP return?", "fingerprint": "3cde5845b991beb62b1974dff5744ea4f612c0bcfe2d11e010f25578398677f7", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S048", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 48, "answer_slides": [ 49 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S051", "canonical_id": "W7-S051", "bank": "ef", "week": 7, "title": "Escrow and GP clawback", "prompt": "LPs fund two investments: $30 million in Company A and $30 million in Company B. There are no fees, expenses, preferred returns, or GP capital contributions.\n\nCompany A exits first for $78 million. Its deal-by-deal waterfall returns that investment's $30 million cost to LPs, then allocates profit 80% to LPs and 20% to GP carry. Twenty percent of the allocated GP carry is retained in escrow; the rest is paid to the GP.\n\nCompany B later exits for $18 million. The fund then liquidates. An enforceable final clawback limits total GP carry to 20% of the combined profit after returning all $60 million of LP capital. Any escrowed carry is used first to satisfy a clawback. There are no tax limitations or other adjustments.\n\nWhat is the total clawback obligation, including the portion covered by escrow, and how much additional cash must the GP repay after applying that escrow?", "fingerprint": "85ce66aaddffea876fc14302bb8d044093b4f759b2036e5d20153749728943d7", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S051", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 51, "answer_slides": [ 52 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S055", "canonical_id": "W7-S055", "bank": "ef", "week": 7, "title": "portfolio value versus cash available", "prompt": "A fund reports higher portfolio valuations, but LPs have received no distributions and still face capital calls. Which conclusion is best supported?", "fingerprint": "8def64cbb64ae2e7759ee413a6f778c3f112f9d6062db3627baf3164ea9a3a68", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S055", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 55, "answer_slides": [ 56 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S057", "canonical_id": "W7-S057", "bank": "ef", "week": 7, "title": "reserves versus new investments", "prompt": "Assumptions: No recycling, new commitments, or other changes to available capacity.\n\nA fund has $20m of remaining investable capacity after fees and expenses. Its plan reserves $12m for follow-ons. It considers a new $10m investment. Under the unchanged reserve plan, which conclusion is correct?", "fingerprint": "5cb12207a91d5048e7296348e2c2d5399268a7b6c43984b0671c3585ab7c586e", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S057", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 57, "answer_slides": [ 58, 59 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S060", "canonical_id": "W7-S060", "bank": "ef", "week": 7, "title": "total value multiple", "prompt": "Assumptions: Both quoted multiples use the same paid-in capital and LP net basis; the portfolio value is residual value attributable to LPs.\n\nA fund has returned 1.2x of paid-in capital in cash and holds portfolio value worth another 1.1x. What is its TVPI?", "fingerprint": "0f810cf04a44aab2b5f77f27755edf1583e956f6e98d64d8ff6699d3c6b570e6", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W7-S060", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 60, "answer_slides": [ 61 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S063", "canonical_id": "W7-S063", "bank": "ef", "week": 7, "title": "DPI and TVPI", "prompt": "A fund has $80 million of commitments, $50 million of LP paid-in capital, $25 million of cumulative LP distributions, and $60 million of residual NAV attributable to LPs.\n\nAn asset included in the $60 million NAV is valued at $20 million. The fund sells it for $16 million and distributes all $16 million to LPs. After removing that asset, the manager reduces the value of the entire remaining portfolio by 25%.\n\nAll asset values, sale proceeds, and distributions are LP amounts after fees, expenses, and carry; no further carry adjustment is required. There are no new contributions, other distributions, liabilities, or valuation changes.\n\nWhat are DPI and TVPI immediately after both events?", "fingerprint": "4194fac622bf682379a61efedad120139ebae76ba21a40ae753fb660174751ca", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S063", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 63, "answer_slides": [ 64 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S066", "canonical_id": "W7-S066", "bank": "ef", "week": 7, "title": "Fees, carry, and LP returns", "prompt": "LPs commit and contribute a total of $80 million to a fund. The following costs are paid from that contributed capital:\n\n| Cost | Rate or amount | Applicable base or period |\n| --- | --- | --- |\n| Management fee, Years 1–3 | 2% annually | $80 million of commitments |\n| Management fee, Years 4–5 | 1.5% annually | Fixed $40 million fee base |\n| Other lifetime fund expenses | $2 million | Total across the fund's life |\n\nAll capital remaining after these costs is invested. Total cash received from selling all portfolio investments, including recovery of invested capital, equals 2.00× the amount actually invested. No unsold investments or other fund assets remain. The costs above have already been paid and are not deducted again from exit proceeds.\n\nThe whole-fund waterfall first returns all $80 million of LP contributions, then allocates remaining profit 80% to LPs and 20% to GP carry. There is no preferred return, catch-up, or GP capital contribution.\n\nWhat is final net LP DPI, rounded to two decimal places?", "fingerprint": "1fc98fc9bb09a9af9159652c2a36ab26063adef46ee7048987097113d87aea1d", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S066", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 66, "answer_slides": [ 67 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S069", "canonical_id": "W7-S069", "bank": "ef", "week": 7, "title": "what higher IRR means", "prompt": "Assumptions: The stated payments are net to LPs; no other cash flows.\n\nTwo fully liquidated funds each receive $100m initially and return $150m in one final payment. A pays after two years; B pays after four. Which statement is correct?", "fingerprint": "3f77cf88fe5670ecaeaf588abca2a15a35c8f2795e3d91e39f211963f566e370", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S069", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 69, "answer_slides": [ 70 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S072", "canonical_id": "W7-S072", "bank": "ef", "week": 7, "title": "Timing changes the LP return", "prompt": "An LP contributes $40m today and $60m exactly one year later. It receives its only net distribution, $146.2m, at the end of Year 3. The fund is then liquidated with no residual value. Fees and carry are already reflected in these LP cash flows.\n\nWhat is the approximate annual LP IRR?", "fingerprint": "8cd44d5034973b4508d32e12fe162aa3b4c36bb469e35cb504af13b8069d9288", "score": 5, "components": { "reasoning": 1, "steps": 3, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S072", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 72, "answer_slides": [ 73 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S074", "canonical_id": "W7-S074", "bank": "ef", "week": 7, "title": "compare multiples and cash dollars", "prompt": "Assumptions: All distributions are cash; both reports use consistent methods and dates.\n\nSame-vintage Fund A has $20m paid-in capital, DPI 1.5x, and RVPI 0.3x. Fund B has $100m paid-in capital, DPI 0.3x, and RVPI 1.5x. Both have TVPI 1.8x. Which conclusion is supported?", "fingerprint": "e486a0ddc5ac3fb429aca039d127226f9bd4fd5ae28f574886aa6820a0d9c45c", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S074", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 74, "answer_slides": [ 75 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S077", "canonical_id": "W7-S077", "bank": "ef", "week": 7, "title": "A higher IRR from a delayed capital call", "prompt": "A fund buys an investment for $10m at time 0 and sells it for $12.1m at the end of Year 2. With direct funding, LPs pay $10m at time 0. With a credit line, LPs instead pay $10.5m at the end of Year 1 to repay principal and all borrowing costs. In both cases LPs receive $12.1m at Year 2. There are no other flows or residual assets. Which annual LP IRRs and cash multiples are correct?", "fingerprint": "9747d46805819ca5af7d99cee61381d1130dfe369ac19c2dd8d01809ff38fb5e", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S077", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 77, "answer_slides": [ 78 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S081", "canonical_id": "W7-S081", "bank": "ef", "week": 7, "title": "why fund size matters to a founder", "prompt": "Assumptions: Same exit rights; no debt, preferences, selling costs, or further dilution.\n\nTwo funds each retain 8% at a possible $400m equity exit. Their committed fund sizes are $40m and $200m. Which conclusion about this potential outcome is supported?", "fingerprint": "dc7203d713c997db88346d279aac0c567d3d9e8bc6d855a29f8409776f2e5852", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S081", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 81, "answer_slides": [ 82 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S084", "canonical_id": "W7-S084", "bank": "ef", "week": 7, "title": "evaluate a manager’s track record", "prompt": "A manager advertises a top-quartile prior fund with TVPI 2.5x and DPI 0.4x. Its successor is three times larger and has a changed investment team. What should an LP emphasize?", "fingerprint": "4d8047b1c39d0cdca16d9c8c4473af6205219229840f9a7c93125f04f2ad20ae", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S084", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 84, "answer_slides": [ 85 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S087", "canonical_id": "W7-S087", "bank": "ef", "week": 7, "title": "public manager shares versus a fund interest", "prompt": "An investor buys shares in a listed private-markets manager instead of becoming an LP in a VC fund. Which exposure has the investor primarily acquired?", "fingerprint": "4c985c005ec036ade108e45a93a0d3a974e7a8f38c5eb3640dc0bf685d604b1d", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S087", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 87, "answer_slides": [ 88 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S091", "canonical_id": "W7-S091", "bank": "ef", "week": 7, "title": "identify the GP’s cash flows", "prompt": "Assumptions: No fees, taxes, preferred return, or other cash flows.\n\nLPs contribute $98m and the GP contributes $2m. Final proceeds are $150m. Capital interests share proportionally; the GP earns 20% carry only on LP-attributable profit. What does the GP receive from its own investment and from carry?", "fingerprint": "8473b83043a5b1b4b453258a91d1b06b6ed11a763f723c49b29c736535c53cd6", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S091", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 91, "answer_slides": [ 92 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S094", "canonical_id": "W7-S094", "bank": "ef", "week": 7, "title": "fund age and carried-interest tax", "prompt": "A six-year-old fund sells portfolio shares held for 30 months and allocates gains through an applicable partnership interest. Which approach addresses the general §1061 holding-period issue?", "fingerprint": "9169a5c37f0bbaf39da7f1cb0157412b87372174bb26589187b1a501d1305f51", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S094", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 94, "answer_slides": [ 95 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S097", "canonical_id": "W7-S097", "bank": "ef", "week": 7, "title": "timing the preferred return", "prompt": "Assumptions: No interim capital repayments or distributions.\n\nLPs contribute $50m at time zero and $30m at year one. Distribution occurs at year three. Preference compounds annually at 10% on contributed, unreturned capital. Which calculation gives the accrued preference?", "fingerprint": "2aab0269f30a638024568392dfc4c27e6b39ab32a26b908523753c8d6720041e", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S097", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 97, "answer_slides": [ 98 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S099", "canonical_id": "W7-S099", "bank": "ef", "week": 7, "title": "catch-up rate versus final carry", "prompt": "Assumptions: Capital and preference are paid; the catch-up target is not reached during this payment.\n\nA waterfall allocates 80% to the GP during catch-up toward a 20% final profit share. An additional $1m will be paid entirely within that catch-up tier. How is this $1m allocated?", "fingerprint": "3b9b9c21725139a0a1987d385c4be74d41315f2bf9d2f8db7ea6624c081b6bc9", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W7-S099", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 99, "answer_slides": [ 100 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S101", "canonical_id": "W7-S101", "bank": "ef", "week": 7, "title": "escrow and the remaining clawback", "prompt": "Assumptions: The LPA requires full clawback and escrow first. No tax adjustment, cap, escrow earnings, or collectability issue.\n\nEarlier carry was $10m: $8m released to the GP and $2m held in escrow. Final carry entitlement is $4m. How should the excess be recovered?", "fingerprint": "72bfa55a22e7c508f5ad315bc5731ea0362e4a265fce21d7ef983ee24aea13d8", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W7-S101", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 101, "answer_slides": [ 102 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S103", "canonical_id": "W7-S103", "bank": "ef", "week": 7, "title": "fees, carry, and LP returns", "prompt": "Assumptions: All cash is distributed. No preference, unpaid costs, taxes, GP capital, or interim distributions.\n\nLPs contribute $80m: $70m is invested and $10m pays all fees and expenses. Final exit proceeds are $140m. The LPA returns all $80m contributed before 20% carry. Which GP carry, LP distribution, and net DPI are correct?", "fingerprint": "a5d2044018ead297e1d86614f7adddfce9da552286fc9ed362e9a981493a705a", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W7-S103", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 103, "answer_slides": [ 104 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S106", "canonical_id": "W7-S106", "bank": "ef", "week": 7, "title": "relative industry size", "prompt": "Assumptions: For this original question, “private equity” refers to the broader private-equity universe, which includes VC. Public-market capitalization and fund AUM are different measures.\n\nHow does the U.S. venture capital industry compare in size to public equity and private equity?", "fingerprint": "998315a3c3c6b03d4a0bc293666af09fc442a5e3dc3ff631915ad1a181af17c7", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S106", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 106, "answer_slides": [ 107 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S108", "canonical_id": "W7-S108", "bank": "ef", "week": 7, "title": "venture capital versus buyouts", "prompt": "What most fundamentally distinguishes a venture capital investment from a private equity buyout?", "fingerprint": "64bc6d91063216821e2fa00a49810bfe86199efdba48d639295a7a507e47eb0c", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S108", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 108, "answer_slides": [ 109 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S110", "canonical_id": "W7-S110", "bank": "ef", "week": 7, "title": "the carry recipient", "prompt": "Assumptions: Use the simplified three-role structure taught here; no separate carry vehicle is used.\n\nIn the three-entity fund structure, which entity receives the carried interest?", "fingerprint": "c4bfb5a115e6b215a7aa41ba189599c7e1bd9931f979beb02da1333c002edfce", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S110", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 110, "answer_slides": [ 111 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S112", "canonical_id": "W7-S112", "bank": "ef", "week": 7, "title": "fee research", "prompt": "Metrick and Yasuda (2010) found which of the following about fund economics?", "fingerprint": "feae16b6a3a42a9b49194d13c78684de856fa1d12eee6067129cb476684e1ce3", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S112", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 112, "answer_slides": [ 113 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S114", "canonical_id": "W7-S114", "bank": "ef", "week": 7, "title": "first distribution tier", "prompt": "Assumptions: Distributable cash is available after fees, liabilities, and reserves are addressed. The modeled LPA returns all LP contributed capital before carry.\n\nIn this simplified whole-fund waterfall, what is paid first?", "fingerprint": "da4aa978eca05cb458b05805b90c921b9b383ec7e17a76484b53863c0f1e5237", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S114", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 114, "answer_slides": [ 115 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S116", "canonical_id": "W7-S116", "bank": "ef", "week": 7, "title": "deal-by-deal timing", "prompt": "How does an American (deal-by-deal) waterfall differ from a European (whole-fund) waterfall?", "fingerprint": "3e612ea34d6f0c4dfe03be51eb3475b2b5a0ecddaa1af453709e3e76e9df3da5", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S116", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 116, "answer_slides": [ 117 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S118", "canonical_id": "W7-S118", "bank": "ef", "week": 7, "title": "the J-curve", "prompt": "Why does a fund's cumulative net cash to LPs trace a J-curve?", "fingerprint": "2b29612ae6a70a48563308f4340ed6a1861c7aaf6173050ed1ded159db89c939", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S118", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 118, "answer_slides": [ 119 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S120", "canonical_id": "W7-S120", "bank": "ef", "week": 7, "title": "skewed venture outcomes", "prompt": "Horsley Bridge data from 1985 to 2014 showed roughly what about VC returns?", "fingerprint": "bd1728db7a5ba1bbbe039b78698565f0a0b765a3e3913d7ff7d2bb6e08fbea65", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S120", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 120, "answer_slides": [ 121 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W7-S122", "canonical_id": "W7-S122", "bank": "ef", "week": 7, "title": "persistence", "prompt": "Assumptions: Interpret the choices as summaries of the historical research discussed, not a claim about every fund or current market conditions.\n\nWhat does the evidence on performance persistence show for venture capital?", "fingerprint": "bd3b74f35c44672d0b406d6bf5a0bcd6a4fadc51c177386474e2b40a5c6baed5", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W7-S122", "locations": [ { "deck_id": "1iaTuWa7xH4HMhALEVqCz49_ZW5S6aTOG", "deck_name": "1. Week 7 - FIN143 - VC Industry and Fund Economics - SCU.pptx", "question_slide": 122, "answer_slides": [ 123 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S006", "canonical_id": "W8-S006", "bank": "ef", "week": 8, "title": "fit the funding to the founder", "prompt": "A founder can afford a $40,000 pilot, wants an independently owned business, and expects early customer receipts. Moving faster offers no demonstrated advantage. Which starting strategy best fits these facts?", "fingerprint": "ed4fca262796beaeec2eac7428bdcfa86e80ddd3eb4dea081ab91b39355c926b", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S006", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 6, "answer_slides": [ 7 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S010", "canonical_id": "W8-S010", "bank": "ef", "week": 8, "title": "distinguish usable cash from reported cash", "prompt": "Assumptions: No other financing flows. Grant cash cannot fund this plan or its reserve.\n\nA company reports $1.20 million cash, including $0.30 million restricted to an unrelated grant project. Its operating plan has $2.25 million of net cash outflow to the lowest cash point. It needs a $0.40 million reserve and pays $0.10 million of closing fees. What gross raise funds this plan?", "fingerprint": "cb3527d4195469d6e87a6f5ecfb8e17bb8ebf8d3dd36bd3b0856b1b65f7a1a9b", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S010", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 10, "answer_slides": [ 11 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S014", "canonical_id": "W8-S014", "bank": "ef", "week": 8, "title": "avoid a financing-driven NPV error", "prompt": "An expansion has expected cash flows before interest and debt principal. A defensible WACC for this project’s risk and financing policy is 14%; a lender quotes 9%. Which valuation treatment is consistent?", "fingerprint": "82731fb3f0d28505b4e276f35542769598a6d8de867035a169550b6b2aacfbc2", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S014", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 14, "answer_slides": [ 15 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S018", "canonical_id": "W8-S018", "bank": "ef", "week": 8, "title": "why cheap debt is not free value", "prompt": "In the MM no-tax benchmark, a firm replaces some equity with cheaper debt while its operating assets and investment policy stay unchanged. Why does this not automatically reduce its overall required return?", "fingerprint": "d962624343277073692f978d9f4a146e9383155cbdf9c2152b5cc45ad2c39bbe", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S018", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 18, "answer_slides": [ 19 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S022", "canonical_id": "W8-S022", "bank": "ef", "week": 8, "title": "a startup’s tax-shield decision", "prompt": "A loss-making startup has uncertain future taxable income and large costs if debt forces it to cut essential development. Which conclusion best applies the tradeoff framework?", "fingerprint": "bbaad71dea2d8a084cfca7e0bacda7d93bc544ff905e2bde214a574dd634e94f", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S022", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 22, "answer_slides": [ 23 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S025", "canonical_id": "W8-S025", "bank": "ef", "week": 8, "title": "when the pecking order is constrained", "prompt": "A pre-revenue company has a promising but uncertain project, no retained cash, and no credible way to service a conventional loan. What follows from the pecking-order discussion?", "fingerprint": "28675887df4b6a711958ae05e48cf54c1a214ff47e54e617b9e22df12f5d10fd", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S025", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 25, "answer_slides": [ 26 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S029", "canonical_id": "W8-S029", "bank": "ef", "week": 8, "title": "identify the financing conflict", "prompt": "After borrowing, shareholders prefer a new project with lower expected total company value but more upside if it succeeds. Lenders bear more loss if it fails. Which concern most directly explains a covenant restricting that change?", "fingerprint": "cdb93d01fab4747e6e1859897965ef0efed9af7addd1860cf5dee37fa58a3024", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S029", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 29, "answer_slides": [ 30, 31 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S033", "canonical_id": "W8-S033", "bank": "ef", "week": 8, "title": "what beta does and does not measure", "prompt": "Assumptions: Use the same currency, risk-free rate, and market risk premium.\n\nTwo firms have the same estimated equity beta. One also faces a large, company-specific technical risk that is unrelated to the market. Under the basic CAPM for diversified investors, which statement is correct?", "fingerprint": "b0e6ceeed591d473172c3cb957b197b1dade9c5a9eafbe93c75eef954c8fe8b9", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S033", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 33, "answer_slides": [ 34 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S036", "canonical_id": "W8-S036", "bank": "ef", "week": 8, "title": "Startup risk and project NPV", "prompt": "An all-equity startup project requires $3 million today. It produces no intermediate cash flows and is liquidated at the end of Year 2.\n\n| Outcome | Probability | Cash paid to equity at the end of Year 2 |\n| --- | --- | --- |\n| Commercial success | 70% | $6.0 million |\n| Commercial failure | 30% | $0.4 million |\n\nThe risk-free rate is 4%, the project's equity beta is 1.6, and the market equity risk premium is 5%. Assume the resulting CAPM required return is appropriate for these probability-weighted equity cash flows. Investors are diversified; no additional risk adjustment is required. The Year 2 cash amounts are after all remaining costs and taxes and include any recovery proceeds.\n\nWhat is the project's NPV today, rounded to the nearest $1,000?", "fingerprint": "d93f178fba861b7eb8e96014d942aaf064814d0780e67738d5874176c4d932aa", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W8-S036", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 36, "answer_slides": [ 37 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S039", "canonical_id": "W8-S039", "bank": "ef", "week": 8, "title": "use comparables consistently", "prompt": "A private startup will borrow modestly. Its closest public operating peers use much more leverage. Under the stated beta model, which approach best estimates the startup’s equity risk?", "fingerprint": "af394c87d7d83e5bf716e53798d5bef50d8638537eae156d4edf11a24c5f54b5", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S039", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 39, "answer_slides": [ 40 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S042", "canonical_id": "W8-S042", "bank": "ef", "week": 8, "title": "Startup beta and CAPM", "prompt": "A profitable young private company lacks a traded share-price history. An analyst uses two public peers to estimate its cost of equity for diversified investors.\n\n| Peer | Levered equity beta | Market-value debt-to-equity ratio |\n| --- | --- | --- |\n| A | 1.68 | 0.50 |\n| B | 1.32 | 0.125 |\n\nAssume debt has zero beta and use the tax-adjusted relationship between unlevered beta and equity beta. Both peers and the target face a 20% marginal corporate tax rate and can use interest deductions in the year interest is paid. Give the two unlevered peer betas equal weight. The target's long-run market-value debt-to-equity ratio is 0.25.\n\nThe risk-free rate is 4% and the market equity risk premium is 5%. No separate size, illiquidity, or company-specific premium is required for this exercise.\n\nWhat target equity beta and CAPM cost of equity result?", "fingerprint": "c3f71b16a996e6c7d3a7fa981446eafa70fe8f2fb39f382dae273f08f954caed", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W8-S042", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 42, "answer_slides": [ 43 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S045", "canonical_id": "W8-S045", "bank": "ef", "week": 8, "title": "The weighted cost of capital", "prompt": "A young profitable firm estimates the following financing inputs:\n\nCurrent market value of equity: $24 million.\n\nCurrent market value of debt: $8 million.\n\nBook value of equity: $12 million.\n\nAnnual interest rate on an existing loan: 6%; current annual borrowing rate for new comparable debt, before tax: 9%.\n\nRisk-free rate: 4%; equity beta: 1.5; market equity risk premium: 6%.\n\nThe marginal corporate income tax rate is 25%, and the firm can use interest deductions in the year interest is paid. Its current market-value financing proportions are its long-run target, and the supplied equity beta is appropriate for that target. A planned financing raises equal dollar amounts of new debt and equity, but the firm plans to rebalance back to its stated target proportions.\n\nWhat WACC should discount FCFF under these assumptions, rounded to two decimal places?", "fingerprint": "2f64a415fa9a1a5b9a24d5b44713a2a3f4ff47db250875f9d2122f1a0454cd29", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W8-S045", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 45, "answer_slides": [ 46 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S048", "canonical_id": "W8-S048", "bank": "ef", "week": 8, "title": "challenge a misleading WACC result", "prompt": "A spreadsheet replaces equity with debt while keeping both required returns fixed. WACC falls at every step, so the analyst recommends the maximum debt available. What is the strongest correction?", "fingerprint": "931d9c70cd1baa1a996191ad1d0642d6a42a62a9c9817a4ea0023a527f2a7d06", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W8-S048", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 48, "answer_slides": [ 49 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S052", "canonical_id": "W8-S052", "bank": "ef", "week": 8, "title": "annual coverage and repayment timing", "prompt": "Downside cash available for debt service is $0.90 million, all received in month 9. Policy requires annual DSCR of at least 1.50×. Loan A requires $0.54 million in month 6. Loan B requires $0.60 million across months 10–12. No cash above the protected reserve or committed refinancing is available earlier. Which conclusion is supported?", "fingerprint": "964eb564c997c03daa52e7a05212109ffd6abd5fc8746b657977d611e6ac016f", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W8-S052", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 52, "answer_slides": [ 53 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S055", "canonical_id": "W8-S055", "bank": "ef", "week": 8, "title": "distinguish new funding from capital weights", "prompt": "Assumptions: Use the stated post-transaction structure, with no other capital claims.\n\nA firm raises $0.60 million of debt and $1.40 million of equity. Immediately afterward, all debt has a market value of $0.60 million and all equity, including existing owners’ shares, is worth $15.40 million. Which debt weight belongs in a WACC using this capital structure?", "fingerprint": "85ef1fe20b4a046a73eb2514375f476675d44930798be2f07c76f18ca38cf6be", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S055", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 55, "answer_slides": [ 56 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S058", "canonical_id": "W8-S058", "bank": "ef", "week": 8, "title": "Debt capacity and funding", "prompt": "A company needs $3 million today to fund expansion and its required cash reserve. It has $400,000 of internal cash available after protecting existing operating needs. The remaining amount must come from a new loan and new equity.\n\nEach year, interest is 10% of the principal outstanding at the start of that year. Interest and one-third of the original principal are paid at each year-end for three years. The lender requires a debt-service coverage ratio of at least 1.50 in each year.\n\n| Year | Downside cash available for debt service, after taxes and required reinvestment |\n| --- | --- |\n| 1 | $780,000 |\n| 2 | $650,000 |\n| 3 | $550,000 |\n\nDebt service includes interest and principal. There is no existing debt, fee, balloon payment, or refinancing. All other lending conditions are satisfied at or below the maximum loan permitted by these annual tests, and equity is available for the balance.\n\nWhat is the maximum loan and minimum new equity required, rounded to $0.01 million?", "fingerprint": "2a6ec7cf61878d3fece5d64da153d862622c0059bf565b2cda48472266ee4eda", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W8-S058", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 58, "answer_slides": [ 59 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S062", "canonical_id": "W8-S062", "bank": "ef", "week": 8, "title": "evaluate the debt bridge", "prompt": "A startup is offered venture debt with a low coupon, warrants, a minimum-cash covenant, and repayment before its next uncommitted equity round. Management says the loan guarantees extra runway. What is the best response?", "fingerprint": "cee0920246cabb372bad251743564ecebe46f0fcdecf576946340a253497ddfa", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S062", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 62, "answer_slides": [ 63 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S065", "canonical_id": "W8-S065", "bank": "ef", "week": 8, "title": "Interest coverage and the maturity gap", "prompt": "A company has a $1.2m bullet loan at 10% annual interest, due in full at Year 2. At that date, cash before the final interest and principal payments is forecast at $1.4m. The company must retain a $0.3m operating floor. Earlier interest is already paid, and no refinancing is committed.\n\nWhat additional cash is needed at maturity to pay the loan and retain the floor?", "fingerprint": "b9321303c6fbefcc0764601c0aad165b787d8ca08446baefe65e4e6be6428886", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S065", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 65, "answer_slides": [ 66 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S068", "canonical_id": "W8-S068", "bank": "ef", "week": 8, "title": "understand the convertible obligation", "prompt": "A founder compares a standard YC SAFE with an interest-bearing convertible note that matures in 18 months. Both contain valuation caps. Which analysis is most important before choosing?", "fingerprint": "fe5493360e4d05577d020669a319b73cd1f0e57777aa06a990b3698b7b0cfbf9", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S068", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 68, "answer_slides": [ 69 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S072", "canonical_id": "W8-S072", "bank": "ef", "week": 8, "title": "compare the rights, not just the price", "prompt": "Assumptions: All proceeds are available to equity; one preferred class; no debt, fees, dividends, or other claims.\n\nTwo investors each offer $2 million for 20% ownership on conversion. Offer A has a 1× non-participating preference; B has 2× non-participating. At a $6 million equity exit, which statement is correct?", "fingerprint": "70e0a0cd79a50000645a5dbf227283d6d323ad989f308f37e81506e7729ae0de", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S072", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 72, "answer_slides": [ 73 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S077", "canonical_id": "W8-S077", "bank": "ef", "week": 8, "title": "test whether the commitment funds the plan", "prompt": "An equity offer commits $3.50 million: $2.50 million now and $1.00 million only after a product milestone. Existing cash is $0.80 million. Before that milestone, downside net cash outflow is $2.80 million and the required cash floor is $0.60 million. What is the strongest response?", "fingerprint": "dd8034a9382eac959793a667f909c1446bb637a144cb44dc28fa358d9cf3fcf4", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S077", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 77, "answer_slides": [ 78 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S080", "canonical_id": "W8-S080", "bank": "ef", "week": 8, "title": "act before the cash floor is threatened", "prompt": "Assumptions: A raise closes four months after launch and funds the milestone. Today is month 0.\n\nCash reaches its minimum reserve in month 3. Pausing nonessential hiring extends that date to month 5 without delaying the product milestone in month 7. A bridge becomes drawable only in month 4. An existing investor is supportive but uncommitted. Which plan best protects the milestone?", "fingerprint": "99d8b882582b692add9ff1315300f65086adbf1c8695e71385bf1707e8290497", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W8-S080", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 80, "answer_slides": [ 81 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S085", "canonical_id": "W8-S085", "bank": "ef", "week": 8, "title": "A feasible financing package", "prompt": "Founders currently own all of a company. Their financing must meet three requirements:\n\nProvide $2.4 million of new cash at closing, including the required reserve; no internal cash is available.\n\nLeave founders with at least 65% fully diluted ownership.\n\nPreserve a founder majority of board seats.\n\nAny loan charges 10% annual interest on the principal outstanding at the start of each year, paid at year-end. Principal is repaid in two equal installments at the ends of Years 1 and 2. First-year downside cash available for principal and interest payments is $420,000; required debt-service coverage is at least 1.40×. For any package that passes this first-year test, assume Year 2 coverage and all other lending conditions are satisfied. Packages without debt have no debt-service requirement.\n\nEach package is fixed and cannot be combined with another. Equity is new primary common stock, with no pools, preferences, convertibles, fees, or other dilution.\n\n| Package | Debt at closing | Equity at closing | Pre-money value | Board and other terms |\n| --- | --- | --- | --- | --- |\n| A | $1.2 million | $1.2 million | $6 million | Founder majority |\n| B | $0.4 million | $2.0 million | $6 million | Founder majority |\n| C | $0 | $2.4 million | $4 million | Founder majority |\n| D | $0 | $2.4 million | $7.2 million | Investor majority |\n| E | $0 | $1.6 million | $6 million | Founder majority; $0.8 million of uncommitted funding may arrive later |\n\nWhich package satisfies all funding, debt-service, ownership, and control requirements?", "fingerprint": "af3c5d40c694b4c1b05e5f38154561467369e933e1dd252a104f1d760c2714cd", "score": 8, "components": { "reasoning": 3, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Evaluate interacting constraints or competing explanations. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W8-S085", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 85, "answer_slides": [ 86, 87 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S089", "canonical_id": "W8-S089", "bank": "ef", "week": 8, "title": "MM and the equity return", "prompt": "Assumptions: D/E uses market values; all rates refer to the stated MM no-tax setting.\n\nA firm's unlevered return is 12%, its cost of debt is 6%, and its D/E is 1.0. Under MM Proposition II (no taxes), the cost of equity is:", "fingerprint": "4a9125db1849bb66d42bdb69fdfd5096bb1bcebdae6352c11286b873ec12ec76", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W8-S089", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 89, "answer_slides": [ 90 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S091", "canonical_id": "W8-S091", "bank": "ef", "week": 8, "title": "compute WACC", "prompt": "Assumptions: Market-value weights; current required returns; fully usable 25% interest tax benefit; a stable financing policy.\n\nA firm is 60% equity and 40% debt. Cost of equity is 15%, pre-tax cost of debt is 8%, and the tax rate is 25%. Its WACC is:", "fingerprint": "c4705f58d5d12c6c82347f01dfb26871f2f37721faed452177e4844afa733f2e", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W8-S091", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 91, "answer_slides": [ 92 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S093", "canonical_id": "W8-S093", "bank": "ef", "week": 8, "title": "choose the financing package", "prompt": "Assumptions: Hypothetical model outputs. All borrowing uses three-year amortization.\n\nA founder seeks the highest modeled NPV while preserving the cash floor, requiring downside DSCR ≥1.50× when borrowing, and rejecting an investor board majority. All packages pass cash-floor tests. NPVs include financing effects. Which package fits?", "fingerprint": "75ff2b10259b02668065e248e0ca3088b9d39b22e070d0f578d8bd943205cc34", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W8-S093", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 93, "answer_slides": [ 94 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S095", "canonical_id": "W8-S095", "bank": "ef", "week": 8, "title": "equity’s economic cost", "prompt": "Why can equity become economically expensive even though it has no scheduled cash repayment?", "fingerprint": "499ac005339dc05e3ed792c5cd9440a0964edaeabe245801359fe45a25ed18e6", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S095", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 95, "answer_slides": [ 96 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S097", "canonical_id": "W8-S097", "bank": "ef", "week": 8, "title": "MM Proposition I", "prompt": "Modigliani and Miller (1958) showed that in a world without taxes or frictions, firm value is:", "fingerprint": "c972b6abb4dbf19233fe25a6414c46f59c985a0b57e4ede4edd245100993719e", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S097", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 97, "answer_slides": [ 98 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S099", "canonical_id": "W8-S099", "bank": "ef", "week": 8, "title": "the permanent-debt tax shield", "prompt": "Assumptions: Simplified MM corporate-tax setting: fixed permanent debt, a constant tax rate, fully usable deductions, and no offsetting financing costs.\n\nA profitable firm is worth $80M unlevered. It adds $30M of permanent debt at a 21% corporate tax rate. Under MM 1963, its levered value is about:", "fingerprint": "7b56aa3b2e2ceafe5659a1567b1c31187d5ae55210a73513aec5e99b0ba48684", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W8-S099", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 99, "answer_slides": [ 100 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S101", "canonical_id": "W8-S101", "bank": "ef", "week": 8, "title": "tradeoff theory", "prompt": "Assumptions: Use the simple tax-benefit/distress-cost model and assume a differentiable interior optimum exists.\n\nThe tradeoff theory says the optimal amount of debt is the point where:", "fingerprint": "940d2ae6e3e5374ba711ce8fd7d3035db9df1c8a768cfc310bc5bd12b9765859", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S101", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 101, "answer_slides": [ 102 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S103", "canonical_id": "W8-S103", "bank": "ef", "week": 8, "title": "the pecking order", "prompt": "Under the pecking order theory, a firm with a choice prefers to finance in which order?", "fingerprint": "9854ef715e1dbdc7d1a3ed13baab40ea2c04cbd0ebdd2f5340bed20c8b29d15b", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S103", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 103, "answer_slides": [ 104 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S105", "canonical_id": "W8-S105", "bank": "ef", "week": 8, "title": "pre-revenue constraints", "prompt": "Why can the traditional pecking order break down for a pre-revenue startup?", "fingerprint": "e8dd9ac9ed2aca8e2f4a1a83ef15cae4a00691f759ee75e1ea0137eebea7e94f", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S105", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 105, "answer_slides": [ 106 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S107", "canonical_id": "W8-S107", "bank": "ef", "week": 8, "title": "asset substitution", "prompt": "Jensen and Meckling (1976) identified an agency cost of debt in which levered shareholders may:", "fingerprint": "2a1e49b49a93e85673d08cc49c0c5d18e412198790c7c0e38853f85646d119d1", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S107", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 107, "answer_slides": [ 108 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S110", "canonical_id": "W8-S110", "bank": "ef", "week": 8, "title": "new-firm financing evidence", "prompt": "Robb and Robinson (2014) found that new firms, contrary to the common view, rely substantially on:", "fingerprint": "c312c5afc9cff8b5333cb0e3159c5e94d09d8e491af226f1cff4875b82ff3aa7", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S110", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 110, "answer_slides": [ 111 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S112", "canonical_id": "W8-S112", "bank": "ef", "week": 8, "title": "the venture-debt downside", "prompt": "Assumptions: Compare the listed situations. Where acceleration occurs, assume the agreement validly requires early repayment.\n\nVenture debt is most dangerous to a startup when:", "fingerprint": "2f6df8bfce93f780323eaf49f5b60f0ca583b7706fa3ff74982deae23c2dffef", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S112", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 112, "answer_slides": [ 113 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S114", "canonical_id": "W8-S114", "bank": "ef", "week": 8, "title": "wealth and control", "prompt": "Assumptions: Interpret the question within Wasserman’s wealth/control framework; outcomes vary across companies and founders.\n\nWasserman (2012) found that founders who raise venture capital tend to:", "fingerprint": "122a919dcce4f486e038545e4d9321ef82632300782ac11311a1f48347892e42", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W8-S114", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 114, "answer_slides": [ 115 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W8-S118", "canonical_id": "W8-S118", "bank": "ef", "week": 8, "title": "keep APV internally consistent", "prompt": "A project has an unlevered operating value of $8.0 million. Separately estimated present values are $0.4 million of usable tax shields, $0.3 million of incremental distress costs, and $0.1 million of issuance costs. None is included in the $8.0 million. What is APV?", "fingerprint": "843bbd4ffb8b4bb20eea7d127856eb30a374fd46f72efcf171e937abd0e03242", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W8-S118", "locations": [ { "deck_id": "1yK1KUIXVO6LPzRNJ8NaXMVt-0Zq_5lqk", "deck_name": "1. Week 8 - FIN143 - Capital Structure and Financing Strategy - SCU.pptx", "question_slide": 118, "answer_slides": [ 119 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S005", "canonical_id": "W9-S005", "bank": "ef", "week": 9, "title": "A read-alone deck", "prompt": "A deck is being forwarded internally at a fund with no founder attached. Which design principle matters most for that read?", "fingerprint": "27eb854b1bb7070b472531ab0d52de5f3702625937941d2564d981f6887f4486", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W9-S005", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 5, "answer_slides": [ 6 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S011", "canonical_id": "W9-S011", "bank": "ef", "week": 9, "title": "Does the outcome fit the fund?", "prompt": "A $150m VC fund would own 18% immediately after a financing. Future rounds are expected to dilute that stake by 25% in total. A plausible exit would produce $400m available to all equity holders, paid pro rata. Ignore fund fees and carry.\n\nHow much would the fund receive, and what fraction of its fund size would that represent?", "fingerprint": "9a324516d423f4b128654220b011c6f59a5fd08b45f5c6d6769e42795b0cc874", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W9-S011", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 11, "answer_slides": [ 12 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S017", "canonical_id": "W9-S017", "bank": "ef", "week": 9, "title": "Research on investor selection", "prompt": "In Gompers and colleagues’ survey of venture capitalists, which factor did respondents generally rate above business characteristics in investment selection?", "fingerprint": "5447fc0c7767d99ee319e0f92a786c8082ec75cc084f48cf42ab108206dee15e", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W9-S017", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 17, "answer_slides": [ 18 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S027", "canonical_id": "W9-S027", "bank": "ef", "week": 9, "title": "Obtainable ARR versus annual market size", "prompt": "A startup's annual SAM is $120m. It begins Year 3 with 300 recurring customers; 20% leave during the year. Ten fully productive sellers each add 18 new recurring customers by year-end. Those new customers remain at year-end. Each active customer then pays $30,000 in recurring annual fees.\n\nWhat are Year 3 ending ARR and its share of the annual SAM?", "fingerprint": "abeb286f70061f98e15fe6e932efc1c61bd6271ff4d8647e1e30f00415303684", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "W9-S027", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 27, "answer_slides": [ 28 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S032", "canonical_id": "W9-S032", "bank": "ef", "week": 9, "title": "Founder-market fit", "prompt": "A founder must reconcile two findings: VCs select on the team, yet the business outlasts the team. How should the team slide reflect both?", "fingerprint": "62e166dd2e3821bc0360e1797d23da1655e5bb3c6fa6942452bd40cdea214241", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W9-S032", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 32, "answer_slides": [ 33 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S036", "canonical_id": "W9-S036", "bank": "ef", "week": 9, "title": "Growth can conceal cohort contraction", "prompt": "A company starts the year with $1m ARR. The original customer cohort ends with $0.9m ARR after cancellations, downgrades, and expansion. New customers add $0.5m ending ARR. Definitions are consistent; no acquisitions or currency effects occur.\n\nWhich statement accurately describes both growth and retention?", "fingerprint": "a11faf65b25c9909894187b9fd511b34d832163320c287985a06a936dba5ec3c", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W9-S036", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 36, "answer_slides": [ 37 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S042", "canonical_id": "W9-S042", "bank": "ef", "week": 9, "title": "The amount raised must fund the cash plan", "prompt": "The cash low point occurs just before a product milestone. Cumulative operating and investment cash use to that date is $2.4m in the base case; the defined downside adds $0.5m. Existing unrestricted cash is $0.6m. Financing fees of $0.1m are paid at closing and the required cash floor is $0.4m. These amounts do not overlap.\n\nWhat gross equity raise covers this downside plan and the cash floor?", "fingerprint": "f6ad7697a07afd43f2c56fddbb4d117edefa8e39e0bf2842928248ad088f4803", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W9-S042", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 42, "answer_slides": [ 43 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S048", "canonical_id": "W9-S048", "bank": "ef", "week": 9, "title": "Turn enterprise value into an equity ask", "prompt": "A startup's DCF indicates $18m operating EV and relevant comps indicate $16m–$20m EV on the same date. The startup has $1m excess cash and $3m debt, with no other claims. A proposed primary equity round uses the $18m EV midpoint and raises $4m. No debt is repaid at closing, no pool changes or conversions occur, and all other terms are held fixed.\n\nWhat pre-money equity value and new-investor ownership follow?", "fingerprint": "64b5324dbc7270a9b7ccaa8abeeb795d7be35f72e0568207f0ba43eda6b554a3", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "W9-S048", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 48, "answer_slides": [ 49 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S057", "canonical_id": "W9-S057", "bank": "ef", "week": 9, "title": "The pitch deck’s job", "prompt": "A founder has already built a market model, a unit-economics model, and a cap table. What is the distinct job of the pitch deck?", "fingerprint": "24c5179d0b28e8c723996c2a3e3a9a65978068de97e127e7fa28414eab50bb9f", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W9-S057", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 57, "answer_slides": [ 58 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S059", "canonical_id": "W9-S059", "bank": "ef", "week": 9, "title": "A bottom-up SAM", "prompt": "A B2B startup identifies 15,000 target companies and expects an average annual contract of $80,000. What is the bottoms-up SAM?", "fingerprint": "c7592d5fb6f6db8625bd06f5e16d708d52879762959dab16a53bec59d10437d5", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W9-S059", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 59, "answer_slides": [ 60 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S061", "canonical_id": "W9-S061", "bank": "ef", "week": 9, "title": "Business and team persistence", "prompt": "Kaplan, Sensoy and Stromberg (2009) tracked firms from business plan to IPO. What did they find about the team versus the business over time?", "fingerprint": "1b388df1146d9b152b92d68e7c0e523974fbd4d4ca21484eddcb4d3880153721", "score": 0, "components": { "reasoning": 0, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Recognize or recall one concept. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W9-S061", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 61, "answer_slides": [ 62 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S063", "canonical_id": "W9-S063", "bank": "ef", "week": 9, "title": "Traction and timing", "prompt": "A traction slide reads: '4,000 users.' The deck already defines a user and explains how the count is measured. What additional information is needed to judge how quickly the company reached this total?", "fingerprint": "bb9a5bca2f3190115acf113b646117fa063969aea18f7692d89196d98effc949", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W9-S063", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 63, "answer_slides": [ 64 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S065", "canonical_id": "W9-S065", "bank": "ef", "week": 9, "title": "Simple runway", "prompt": "A startup raises $3.6 million and burns $150,000 per month, with revenue too small to matter yet. What runway does the ask buy? Assume all raised cash is usable, burn is constant net cash burn, and there are no other cash flows or required reserve. Calculate time to zero cash.", "fingerprint": "fb03ef54be158b411d721ad6d678244e9758c66f146ffccd715dd6ce2e7aeee4", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W9-S065", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 65, "answer_slides": [ 66 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S067", "canonical_id": "W9-S067", "bank": "ef", "week": 9, "title": "LTV and CAC", "prompt": "A company reports CAC of $1,200 and LTV of $3,600. What is the LTV-to-CAC ratio, and how is it read against the common benchmark? Here LTV is estimated lifetime gross profit on a consistent customer basis.", "fingerprint": "5fa0dabbb04b61b62e968ea32e5d53783e693a84aa8750d577f1178527163b12", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "W9-S067", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 67, "answer_slides": [ 68 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S069", "canonical_id": "W9-S069", "bank": "ef", "week": 9, "title": "Forecast drivers", "prompt": "A five-year revenue projection rises from $0 to $80 million with a smooth curve and no supporting detail. Why do investors distrust it?", "fingerprint": "1f8d1da51e97efa26d3cf5478fb3529c1877d6ea295291a5089695969858e114", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W9-S069", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 69, "answer_slides": [ 70 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S071", "canonical_id": "W9-S071", "bank": "ef", "week": 9, "title": "A milestone-based ask", "prompt": "A founder's ask slide says only: 'Raising $5M.' Which addition most improves it in the eyes of an investor?", "fingerprint": "73627bae6050d52f67d17974abd40179f97ff4ec7cf78bef5861c189d4e63d62", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W9-S071", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 71, "answer_slides": [ 72 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "W9-S073", "canonical_id": "W9-S073", "bank": "ef", "week": 9, "title": "Instrument choice", "prompt": "Why does the choice of instrument on the ask slide (SAFE, convertible note, or priced round) carry a signal beyond the dollar amount?", "fingerprint": "e1704b3ce04c1c0ba5818668f782ae12502bbb5d7a9d76b2b527528981dea1ef", "score": 1, "components": { "reasoning": 1, "steps": 0, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. No calculation or dependent solution step. Inputs and basis are directly specified.", "web_id": "W9-S073", "locations": [ { "deck_id": "1ULP7iTevY-d4HCMULq5y5eWgjrFc0HQ7", "deck_name": "1. FIN143 - Pitch Deck Mastery.pptx", "question_slide": 73, "answer_slides": [ 74 ], "continuation_slides": [], "match": "stem and answer choices" } ] }, { "id": "P001", "canonical_id": "P001", "bank": "ef", "week": 2, "title": "Gross-profit CAC payback", "prompt": "A subscription firm spends $93,600 on sales and marketing and acquires 120 new customers. Each pays $125 per month. Gross margin is 65%; the firm also reports fixed corporate overhead of $18,000 per month. Assume all acquisition spending is attributable to these customers, monthly billings equal revenue, and there is no churn. What is gross-profit CAC payback, expressed in months and rounded to one decimal place?", "fingerprint": "65fa2bc79c6b5ed0b6ec29b3d825bc356e0a0f4c7bc4e31141ce27cba303791f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P001", "locations": [] }, { "id": "P002", "canonical_id": "P002", "bank": "ef", "week": 2, "title": "Operating cash break-even volume", "prompt": "A company sells one monthly service plan for $240 per customer. Variable cash delivery and support costs are $90 per customer per month. Fixed monthly operating cash costs are $54,000. The founder has already paid $45,000 for equipment, and monthly depreciation is $2,000. Ignore taxes, financing, further equipment purchases, and working-capital changes. How many active customers are needed for monthly operating cash break-even?", "fingerprint": "5b6a38fb5ad078cc97501d273ad0e787dd1951f975441199e5ff00824e9b71ac", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P002", "locations": [] }, { "id": "P003", "canonical_id": "P003", "bank": "ef", "week": 2, "title": "Retention of the starting customer cohort", "prompt": "A SaaS company starts with 1,800 customers. It loses 2.5% of the remaining starting cohort at each month-end for 9 months. It also adds 100 new customers each month, whose retention is tracked separately. No customer in the starting cohort returns after leaving. How many customers from the original cohort remain after month 9, rounded to the nearest customer?", "fingerprint": "69fd37fd11fb51fa9c50b8ecfe405070e9f907c74f3037067094fb1c66d262df", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P003", "locations": [] }, { "id": "P004", "canonical_id": "P004", "bank": "ef", "week": 2, "title": "Net revenue retention with new customer growth", "prompt": "Beginning annual recurring revenue from existing customers is $480,000. During the year, those customers add $96,000 of expansion ARR, reduce subscriptions by $24,000, and cancel $72,000 of ARR. New customers contribute another $180,000 of ARR. All figures are measured on the same annualized basis. What is net revenue retention for the beginning customer cohort, expressed as a percentage and rounded to one decimal place?", "fingerprint": "8f2325f61e9a042e455d0dd4484daabb47045da720465c6c94811be434655a9f", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P004", "locations": [] }, { "id": "P005", "canonical_id": "P005", "bank": "ef", "week": 2, "title": "Gross-profit LTV relative to CAC", "prompt": "A subscription business has monthly revenue per customer of $160, gross margin of 75%, and constant monthly customer churn of 4.0%. CAC is $1,200. Use the simplified expected-lifetime model with no discounting, no expansion, and no reactivation; expected lifetime in months is the reciprocal of monthly churn. What is gross-profit LTV divided by CAC, rounded to two decimals?", "fingerprint": "9cb08da9b1ec07323a0f0b8c7516c458bc32c2088ecaec6f85d050cc3da2cefb", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P005", "locations": [] }, { "id": "P006", "canonical_id": "P006", "bank": "ef", "week": 3, "title": "Revenue to cash collections", "prompt": "A startup recognizes $1,650,000 of credit revenue during the year. Accounts receivable rises from $310,000 to $455,000. Customers make no advance payments, and there are no write-offs, refunds, cash sales, or foreign-exchange effects. The company also raises $600,000 of equity during the year. How much cash was collected from customers?", "fingerprint": "98b68d2aebf169af43dd635ed9b22e20dc89cbbd149cd5e11b8bb8fe7c623ddf", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P006", "locations": [] }, { "id": "P007", "canonical_id": "P007", "bank": "ef", "week": 3, "title": "Deferred revenue after a customer refund", "prompt": "Opening deferred revenue is $75,000. Customers pay $460,000 in advance during the year, and the company recognizes $395,000 of revenue from those contracts and the opening deferred-revenue balance. It also refunds $18,000 for services never delivered; this refund reduces deferred revenue and does not reverse recognized revenue. There are no receivables or other adjustments. What is closing deferred revenue?", "fingerprint": "dc9bb462f6a6ae754ba6e29418004076683a767e7357dbe60886f323b1edaf78", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P007", "locations": [] }, { "id": "P008", "canonical_id": "P008", "bank": "ef", "week": 3, "title": "Operating cash flow from the indirect method", "prompt": "All amounts are in millions. A startup reports net income of -1.40, depreciation of 0.45, and noncash stock compensation of 0.30. Accounts receivable increases by 0.55, accounts payable by 0.20, and deferred revenue by 1.65. These are the only noncash adjustments and operating working-capital changes. The company also pays 0.90 for equipment. What is operating cash flow, expressed in millions and rounded to two decimal places?", "fingerprint": "9cba4944fd80c7dd5c8bb997adb5e8c3a8743a07517cc02533153e08cb114686", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P008", "locations": [] }, { "id": "P009", "canonical_id": "P009", "bank": "ef", "week": 5, "title": "FCFF with a working-capital bridge", "prompt": "All amounts are in millions. EBIT is 6.80, depreciation and amortization is 1.10, and capital expenditures are 1.90. Accounts receivable increases by 0.70, inventory by 0.35, and operating accounts payable by 0.45. Use a 25% tax rate on EBIT. There are no other operating working-capital changes or tax adjustments. Interest expense is 0.60 and new borrowing is 1.00. What is FCFF, expressed in millions and rounded to two decimal places?", "fingerprint": "bf6794f94db7f96d5cf684c38dd577498aa6c461ff603bea3f033092156f4aac", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P009", "locations": [] }, { "id": "P010", "canonical_id": "P010", "bank": "ef", "week": 4, "title": "Gross raise required at the cash trough", "prompt": "All amounts are in millions. A startup has unrestricted cash of 0.42 today. Its four quarterly net cash flows before financing are -0.28, -0.38, +0.14, -0.32, respectively. The company must maintain at least 0.20 at every quarter-end and today. A financing closes today with an issuance fee of 4% of gross proceeds deducted immediately. No other cash flows occur. What gross raise is required, expressed in millions and rounded to two decimal places?", "fingerprint": "55b65ce74de2bcb01bd7cbe029845bc245497fe1bce060b4716b55dacedfef25", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P010", "locations": [] }, { "id": "P011", "canonical_id": "P011", "bank": "ef", "week": 4, "title": "Sales ramp and recognized subscription revenue", "prompt": "A company hires 3 sales representatives on January 1. They spend January through March training and close no contracts during those months. Starting April 1, each representative signs 5 new customers on the first day of every month through December. Each customer pays $1,200 per month and service begins immediately. Recognize revenue monthly; assume no churn, discounts, bad debts, or prior customers. How much revenue is recognized in the calendar year?", "fingerprint": "73b12dc5c6d519fca46653483c37fb300f2228d1944dee2390231c0d286a4ac1", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P011", "locations": [] }, { "id": "P012", "canonical_id": "P012", "bank": "ef", "week": 4, "title": "Growth required to reach the revenue target", "prompt": "A startup’s current annual revenue is $1.8 million. The operating plan targets $5.4 million in annual revenue exactly 4 years from now. Assume the same percentage growth rate each year and no acquisitions. Management also forecasts a 65% gross margin at the target scale. What annual compound revenue growth rate is required, expressed as a percentage and rounded to one decimal place?", "fingerprint": "111f90dff162700f1e31347356430b91a8d76a6864e5168c38cced3b4c0b1df9", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P012", "locations": [] }, { "id": "P013", "canonical_id": "P013", "bank": "ef", "week": 2, "title": "Gross-profit CAC payback", "prompt": "A subscription firm spends $126,000 on sales and marketing and acquires 140 new customers. Each pays $150 per month. Gross margin is 60%; the firm also reports fixed corporate overhead of $18,000 per month. Assume all acquisition spending is attributable to these customers, monthly billings equal revenue, and there is no churn. What is gross-profit CAC payback, expressed in months and rounded to one decimal place?", "fingerprint": "6fc75dad186f8793993d7d7062702388e0c94591a3aff698ab26436ca830ce6b", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P013", "locations": [] }, { "id": "P014", "canonical_id": "P014", "bank": "ef", "week": 2, "title": "Operating cash break-even volume", "prompt": "A company sells one monthly service plan for $320 per customer. Variable cash delivery and support costs are $120 per customer per month. Fixed monthly operating cash costs are $76,000. The founder has already paid $45,000 for equipment, and monthly depreciation is $2,000. Ignore taxes, financing, further equipment purchases, and working-capital changes. How many active customers are needed for monthly operating cash break-even?", "fingerprint": "a8ecc437adc4c7c9fe00fa87faad4e797b9e041a28ffbab65ee160a6c25e9d7b", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P014", "locations": [] }, { "id": "P015", "canonical_id": "P015", "bank": "ef", "week": 2, "title": "Retention of the starting customer cohort", "prompt": "A SaaS company starts with 2,400 customers. It loses 3.5% of the remaining starting cohort at each month-end for 8 months. It also adds 100 new customers each month, whose retention is tracked separately. No customer in the starting cohort returns after leaving. How many customers from the original cohort remain after month 8, rounded to the nearest customer?", "fingerprint": "5b296dfc3c065b2af6a4bbca8d975a523cae48343aa7000357e1aeab4963c487", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P015", "locations": [] }, { "id": "P016", "canonical_id": "P016", "bank": "ef", "week": 2, "title": "Net revenue retention with new customer growth", "prompt": "Beginning annual recurring revenue from existing customers is $650,000. During the year, those customers add $117,000 of expansion ARR, reduce subscriptions by $39,000, and cancel $52,000 of ARR. New customers contribute another $210,000 of ARR. All figures are measured on the same annualized basis. What is net revenue retention for the beginning customer cohort, expressed as a percentage and rounded to one decimal place?", "fingerprint": "fcf151d0ff186e3c1dcd20c32d10ae489a5675fdc78da83ba0efb6642675d60c", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P016", "locations": [] }, { "id": "P017", "canonical_id": "P017", "bank": "ef", "week": 2, "title": "Gross-profit LTV relative to CAC", "prompt": "A subscription business has monthly revenue per customer of $210, gross margin of 70%, and constant monthly customer churn of 3.5%. CAC is $1,400. Use the simplified expected-lifetime model with no discounting, no expansion, and no reactivation; expected lifetime in months is the reciprocal of monthly churn. What is gross-profit LTV divided by CAC, rounded to two decimals?", "fingerprint": "2141aad04978933055b595ce188a0a1729e2178d32aeed95e38dc40e3f9a137f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P017", "locations": [] }, { "id": "P018", "canonical_id": "P018", "bank": "ef", "week": 3, "title": "Revenue to cash collections", "prompt": "A startup recognizes $2,140,000 of credit revenue during the year. Accounts receivable rises from $420,000 to $565,000. Customers make no advance payments, and there are no write-offs, refunds, cash sales, or foreign-exchange effects. The company also raises $600,000 of equity during the year. How much cash was collected from customers?", "fingerprint": "5ab198ea65d7a5cc33bb294e4e9600bbe260017c97dbbff7e46149c7c3060c76", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P018", "locations": [] }, { "id": "P019", "canonical_id": "P019", "bank": "ef", "week": 3, "title": "Deferred revenue after a customer refund", "prompt": "Opening deferred revenue is $92,000. Customers pay $580,000 in advance during the year, and the company recognizes $510,000 of revenue from those contracts and the opening deferred-revenue balance. It also refunds $22,000 for services never delivered; this refund reduces deferred revenue and does not reverse recognized revenue. There are no receivables or other adjustments. What is closing deferred revenue?", "fingerprint": "9af4c87ff02c5f40ab2b801c7f776ff305ac26dd398442c1032e819f825053ec", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P019", "locations": [] }, { "id": "P020", "canonical_id": "P020", "bank": "ef", "week": 3, "title": "Operating cash flow from the indirect method", "prompt": "All amounts are in millions. A startup reports net income of -1.70, depreciation of 0.60, and noncash stock compensation of 0.40. Accounts receivable increases by 0.65, accounts payable by 0.25, and deferred revenue by 2.00. These are the only noncash adjustments and operating working-capital changes. The company also pays 0.90 for equipment. What is operating cash flow, expressed in millions and rounded to two decimal places?", "fingerprint": "24cd97b909437723b80691ca3fba01372f695ddd39471d23c7e20983fe2d6cfb", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P020", "locations": [] }, { "id": "P021", "canonical_id": "P021", "bank": "ef", "week": 5, "title": "FCFF with a working-capital bridge", "prompt": "All amounts are in millions. EBIT is 8.40, depreciation and amortization is 1.30, and capital expenditures are 2.40. Accounts receivable increases by 0.90, inventory by 0.40, and operating accounts payable by 0.55. Use a 25% tax rate on EBIT. There are no other operating working-capital changes or tax adjustments. Interest expense is 0.60 and new borrowing is 1.00. What is FCFF, expressed in millions and rounded to two decimal places?", "fingerprint": "ddc437d067fda4c08100999e3da6ecb7f29f572ee871c7452e64351548356c2b", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P021", "locations": [] }, { "id": "P022", "canonical_id": "P022", "bank": "ef", "week": 4, "title": "Gross raise required at the cash trough", "prompt": "All amounts are in millions. A startup has unrestricted cash of 0.50 today. Its four quarterly net cash flows before financing are -0.35, -0.42, +0.18, -0.30, respectively. The company must maintain at least 0.25 at every quarter-end and today. A financing closes today with an issuance fee of 5% of gross proceeds deducted immediately. No other cash flows occur. What gross raise is required, expressed in millions and rounded to two decimal places?", "fingerprint": "d0a11de39b8245e7528eaa55eb7ca51b49b2819d72d77894442fa0eee08da572", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P022", "locations": [] }, { "id": "P023", "canonical_id": "P023", "bank": "ef", "week": 4, "title": "Sales ramp and recognized subscription revenue", "prompt": "A company hires 4 sales representatives on January 1. They spend January through March training and close no contracts during those months. Starting April 1, each representative signs 4 new customers on the first day of every month through December. Each customer pays $1,500 per month and service begins immediately. Recognize revenue monthly; assume no churn, discounts, bad debts, or prior customers. How much revenue is recognized in the calendar year?", "fingerprint": "683357c141fc219d1da5620495e34042337ca937930ba827c74fa84d6595b547", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P023", "locations": [] }, { "id": "P024", "canonical_id": "P024", "bank": "ef", "week": 4, "title": "Growth required to reach the revenue target", "prompt": "A startup’s current annual revenue is $2.5 million. The operating plan targets $7.5 million in annual revenue exactly 5 years from now. Assume the same percentage growth rate each year and no acquisitions. Management also forecasts a 65% gross margin at the target scale. What annual compound revenue growth rate is required, expressed as a percentage and rounded to one decimal place?", "fingerprint": "3921a467236c42417cf98a78688e3e1843fd02c6d201d02d65c9680768c6d3d6", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P024", "locations": [] }, { "id": "P025", "canonical_id": "P025", "bank": "ef", "week": 5, "title": "Incremental NPV of an advance payment", "prompt": "A service company can collect $165,000 at each year-end for 3 years, or collect the entire undiscounted contract price today less a 17% prepayment discount. Prepayment alone creates a $9,600 administration cost today. Service delivery costs $34,000 at each year-end under either option. Use 21% as the appropriate annual opportunity cost of capital. Service obligations are identical, all cash is collected as scheduled, and there are no taxes or other cash flows. What is incremental NPV of prepayment over annual billing, rounded to the nearest dollar?", "fingerprint": "1b6f9d1a94e449c05b674fd2a88c4f6d0be035240f5f2a57c323aace008c7940", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P025", "locations": [] }, { "id": "P026", "canonical_id": "P026", "bank": "ef", "week": 5, "title": "Project NPV with a terminal asset sale", "prompt": "A project costs $350,000 today. Its year-end operating free cash flows are $120,000, $150,000, and $190,000 in Years 1–3. At the end of Year 3, it also generates $45,000 from an asset sale, stated after all taxes and selling costs. Use a 14% annual discount rate. The operating cash flows exclude the sale proceeds; there are no other flows. What is NPV today, rounded to the nearest dollar?", "fingerprint": "5466260c7cb57f3abb3a40cd3c56b5b854e3df4b6843b0521f863653c4ad5125", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P026", "locations": [] }, { "id": "P027", "canonical_id": "P027", "bank": "ef", "week": 3, "title": "Present value of beginning-of-year payments", "prompt": "A startup signs a 4-year equipment lease requiring $72,000 at the beginning of each year. The first payment is due today and the final payment is due at time 3. Use a 10% effective annual discount rate. Ignore tax effects, residual values, deposits, and all other costs. What is the present value of the lease payments, rounded to the nearest dollar?", "fingerprint": "23284b577b373b8d98e9e8aa2cee184b7781cc12863b4ee1713b56873928322f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P027", "locations": [] }, { "id": "P028", "canonical_id": "P028", "bank": "ef", "week": 3, "title": "Monthly reserve deposits for a future obligation", "prompt": "A startup needs $240,000 exactly 24 months from today to meet a planned equipment payment. It currently has no money set aside for this obligation. It will make equal deposits at each month-end into an account earning a nominal annual rate of 6.0%, compounded monthly. The last deposit is made on the payment date. What monthly deposit is required, rounded to the nearest dollar?", "fingerprint": "39d046d17bc83d55d80ea137191bb188c4d5f3e36e28d48200a81d0fb9f8789d", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P028", "locations": [] }, { "id": "P029", "canonical_id": "P029", "bank": "ef", "week": 5, "title": "Annualized return from one exit", "prompt": "An investor pays $1.6 million today and receives a single $4.4 million distribution exactly 5 years later. There are no interim distributions, fees, taxes, or follow-on investments. The company reports a 40% revenue growth rate over the first year. What is the investor’s annual IRR, expressed as a percentage and rounded to one decimal place?", "fingerprint": "19aba41c99038f65bd97c07b143bd4248aa34ed02dbc2fbc9d77a9fafb4e64dc", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P029", "locations": [] }, { "id": "P030", "canonical_id": "P030", "bank": "ef", "week": 5, "title": "Incremental value of the larger project", "prompt": "Two mutually exclusive projects have the same three-year life and risk. Project A costs $0.75 million today and pays $0.32 million at each of the next three year-ends. Project B costs $1.15 million today and pays $0.49 million at each year-end. Capital is available for either project, and there are no later cash flows. Use a 12% opportunity cost of capital. What is NPV(B) minus NPV(A), expressed in millions and rounded to three decimal places?", "fingerprint": "d7e222e50ee93eaa59f4817f4c7f8581686260bd459335a33c098932be8d6376", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P030", "locations": [] }, { "id": "P031", "canonical_id": "P031", "bank": "ef", "week": 5, "title": "Incremental NPV of an advance payment", "prompt": "A service company can collect $190,000 at each year-end for 4 years, or collect the entire undiscounted contract price today less a 16% prepayment discount. Prepayment alone creates a $12,500 administration cost today. Service delivery costs $42,000 at each year-end under either option. Use 19% as the appropriate annual opportunity cost of capital. Service obligations are identical, all cash is collected as scheduled, and there are no taxes or other cash flows. What is incremental NPV of prepayment over annual billing, rounded to the nearest dollar?", "fingerprint": "ca62195d65cead05179a53ade243eb541c1049662fb50047703a8c76483641fc", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P031", "locations": [] }, { "id": "P032", "canonical_id": "P032", "bank": "ef", "week": 5, "title": "Project NPV with a terminal asset sale", "prompt": "A project costs $420,000 today. Its year-end operating free cash flows are $135,000, $180,000, and $225,000 in Years 1–3. At the end of Year 3, it also generates $55,000 from an asset sale, stated after all taxes and selling costs. Use a 16% annual discount rate. The operating cash flows exclude the sale proceeds; there are no other flows. What is NPV today, rounded to the nearest dollar?", "fingerprint": "a48da392767afbf22a4be5c144ac966921ac88ab459aee34c65fa7b0b6be5ad8", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P032", "locations": [] }, { "id": "P033", "canonical_id": "P033", "bank": "ef", "week": 3, "title": "Present value of beginning-of-year payments", "prompt": "A startup signs a 5-year equipment lease requiring $84,000 at the beginning of each year. The first payment is due today and the final payment is due at time 4. Use a 12% effective annual discount rate. Ignore tax effects, residual values, deposits, and all other costs. What is the present value of the lease payments, rounded to the nearest dollar?", "fingerprint": "1b78e158fdfaa9a55f83cc7df51b5ac778c9b5928a892f48389ab86f47c0888f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P033", "locations": [] }, { "id": "P034", "canonical_id": "P034", "bank": "ef", "week": 3, "title": "Monthly reserve deposits for a future obligation", "prompt": "A startup needs $360,000 exactly 30 months from today to meet a planned equipment payment. It currently has no money set aside for this obligation. It will make equal deposits at each month-end into an account earning a nominal annual rate of 7.2%, compounded monthly. The last deposit is made on the payment date. What monthly deposit is required, rounded to the nearest dollar?", "fingerprint": "67e9dc18d80ba88b9dc9241d75d1f2557cffb0de7b13a46e89892a80ab197b54", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P034", "locations": [] }, { "id": "P035", "canonical_id": "P035", "bank": "ef", "week": 5, "title": "Annualized return from one exit", "prompt": "An investor pays $2.1 million today and receives a single $6.3 million distribution exactly 6 years later. There are no interim distributions, fees, taxes, or follow-on investments. The company reports a 40% revenue growth rate over the first year. What is the investor’s annual IRR, expressed as a percentage and rounded to one decimal place?", "fingerprint": "bf6293e3af889493973f01cf2be7cf717f281876b176c1c2f8407ce2e5b90021", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P035", "locations": [] }, { "id": "P036", "canonical_id": "P036", "bank": "ef", "week": 5, "title": "Incremental value of the larger project", "prompt": "Two mutually exclusive projects have the same three-year life and risk. Project A costs $0.90 million today and pays $0.39 million at each of the next three year-ends. Project B costs $1.30 million today and pays $0.55 million at each year-end. Capital is available for either project, and there are no later cash flows. Use a 14% opportunity cost of capital. What is NPV(B) minus NPV(A), expressed in millions and rounded to three decimal places?", "fingerprint": "5bbbc62f7d9f551ab7f8331bfeb839cfbe55ae9de297f2cdbe6fdc500995e6dc", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P036", "locations": [] }, { "id": "P037", "canonical_id": "P037", "bank": "ef", "week": 5, "title": "Terminal value and the equity bridge", "prompt": "A DCF forecasts cash flows through Year 3. The present value today of all Year 1–3 FCFF is $4.6 million. FCFF in Year 4, the first year after the explicit forecast, is expected to be $2.8 million and then grow at 3.0% annually forever. WACC is 13.0%. Excess cash today is $1.1 million and debt today is $3.5 million, with no other claims. What is equity value today, expressed in millions and rounded to two decimal places?", "fingerprint": "b5ce875985adc46f6303a9638f9b63718dd3e0bd8ea58120f1496abd579dcb7a", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P037", "locations": [] }, { "id": "P038", "canonical_id": "P038", "bank": "ef", "week": 5, "title": "Full DCF with restricted cash", "prompt": "Year-end FCFF in Years 1–3 is $-1.6, $0.8, and $3.1 million, respectively. Beginning in Year 4, FCFF grows at 3% annually forever from the Year 3 level. Use a constant 15% WACC. Current cash is $2.3 million, of which $0.7 million is restricted and must remain in operations; only the rest is excess. Current debt is $4.1 million. There are no other claims. What is current equity value, expressed in millions and rounded to two decimal places?", "fingerprint": "5fb16810e6633d35b74c192b687fcfad3e67c621187760379f547595ff79a60e", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P038", "locations": [] }, { "id": "P039", "canonical_id": "P039", "bank": "ef", "week": 5, "title": "Exit-multiple DCF", "prompt": "The present value today of a company’s Year 1–4 FCFF is $6.4 million. At the end of Year 4, the business is assumed to sell for 8 times Year 4 EBITDA of $5.5 million. This multiple yields enterprise value. Use a 14% WACC. Current excess cash is $1.6 million and current debt is $6.2 million. Explicit FCFF excludes sale proceeds. What is current equity value, expressed in millions and rounded to two decimal places?", "fingerprint": "e35fed29898f1b50fdefea769f303e76f4b67405a5f9cfc63bd9dd1a49ff06a7", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P039", "locations": [] }, { "id": "P040", "canonical_id": "P040", "bank": "ef", "week": 5, "title": "PEG from compound EPS growth", "prompt": "A company trades at $96.00 per share. Current annual EPS is $4.00; forecast annual EPS three years from now is $6.912. Revenue is expected to grow 30% per year, and the peer median P/E is 19×. For this question, use the company’s current EPS in P/E and annual compound growth from current EPS to the Year 3 EPS forecast in PEG. Enter growth as percentage points, such as 20 for 20%. What is PEG, rounded to two decimals?", "fingerprint": "5863de6e09c73da854b6e808ef6a4dbefa9a1abed9a5d6ed5519c3592b9eb65f", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P040", "locations": [] }, { "id": "P041", "canonical_id": "P041", "bank": "ef", "week": 5, "title": "PEG after forecast share dilution", "prompt": "A firm trades at $84.00 per share. Current net income available to common shareholders is $160 million and current diluted shares are 50 million. Three years from now, forecast common net income is $280 million and diluted shares are 56 million. Use current diluted EPS for P/E and three-year compound diluted-EPS growth for PEG; enter growth in percentage points. What is PEG, rounded to two decimals?", "fingerprint": "b7519c2b7f56029555bf5d30d38f56b5367b7bc54956d72fa73f4dfc5b95ba18", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P041", "locations": [] }, { "id": "P042", "canonical_id": "P042", "bank": "ef", "week": 5, "title": "Normalized EBITDA and comparable value", "prompt": "A company reports EBITDA of $4.20 million. This includes a one-time legal expense of $0.60 million and a nonrecurring gain of $0.35 million. Treat both as nonrecurring for this exercise. Apply a 7.5× EV/EBITDA multiple to normalized EBITDA. Excess cash is $1.2 million and debt is $4.0 million, with no other claims. What is indicated equity value, expressed in millions and rounded to two decimal places?", "fingerprint": "db09152e3936a18835c29e081b5caf8d2c2e32a5bc69a064c439a7ffcdd89c06", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P042", "locations": [] }, { "id": "P043", "canonical_id": "P043", "bank": "ef", "week": 5, "title": "Consistent revenue basis in comparable valuation", "prompt": "Comparable-company analysis supports 4.5× next-twelve-month revenue for the subject’s risk and growth profile. The subject has trailing-twelve-month revenue of $6.1 million and next-twelve-month revenue of $7.8 million. The multiple yields enterprise value. Excess cash is $2.1 million and debt is $5.8 million. No other claims exist. What is indicated current equity value, expressed in millions and rounded to two decimal places?", "fingerprint": "25739eeb2209fe4373f5600dfc08ee842deb03781a7a753d3f7494d2114157b0", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P043", "locations": [] }, { "id": "P044", "canonical_id": "P044", "bank": "ef", "week": 5, "title": "VC pricing after future dilution", "prompt": "A VC invests $5 million today. At the end of Year 5, projected exit enterprise value is $110 million, exit debt is $14 million, and exit excess cash is $4 million. The investor targets a 30% annual return and expects a future financing to reduce its percentage ownership by 25% relative to its post-investment stake today. Assume no interim distributions, preferences, or other dilution. What current pre-money equity value is consistent with these assumptions, expressed in millions and rounded to two decimal places?", "fingerprint": "c5903b05ee2345279282af6f3588d11c75bf1df1b9e0e874c88742d59bc3076a", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P044", "locations": [] }, { "id": "P045", "canonical_id": "P045", "bank": "ef", "week": 5, "title": "Terminal value and the equity bridge", "prompt": "A DCF forecasts cash flows through Year 3. The present value today of all Year 1–3 FCFF is $5.3 million. FCFF in Year 4, the first year after the explicit forecast, is expected to be $3.2 million and then grow at 3.5% annually forever. WACC is 14.5%. Excess cash today is $1.4 million and debt today is $4.2 million, with no other claims. What is equity value today, expressed in millions and rounded to two decimal places?", "fingerprint": "bc644aa22923ac2c6fdc32daeee7ee0c4d75cfa5f84231f3b17ca5a166685d2c", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P045", "locations": [] }, { "id": "P046", "canonical_id": "P046", "bank": "ef", "week": 5, "title": "Full DCF with restricted cash", "prompt": "Year-end FCFF in Years 1–3 is $-1.9, $1.1, and $3.6 million, respectively. Beginning in Year 4, FCFF grows at 3% annually forever from the Year 3 level. Use a constant 16% WACC. Current cash is $2.6 million, of which $0.8 million is restricted and must remain in operations; only the rest is excess. Current debt is $4.7 million. There are no other claims. What is current equity value, expressed in millions and rounded to two decimal places?", "fingerprint": "49f4e103bea53db5373635def41d6f5d130a3e45811f24e767965f34b81c0027", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P046", "locations": [] }, { "id": "P047", "canonical_id": "P047", "bank": "ef", "week": 5, "title": "Exit-multiple DCF", "prompt": "The present value today of a company’s Year 1–4 FCFF is $7.2 million. At the end of Year 4, the business is assumed to sell for 9 times Year 4 EBITDA of $6.2 million. This multiple yields enterprise value. Use a 16% WACC. Current excess cash is $1.9 million and current debt is $7.1 million. Explicit FCFF excludes sale proceeds. What is current equity value, expressed in millions and rounded to two decimal places?", "fingerprint": "c8f7dfd232babd4156094e6517c32984be84e33758fd359bce6395919a8bc887", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P047", "locations": [] }, { "id": "P048", "canonical_id": "P048", "bank": "ef", "week": 5, "title": "PEG from compound EPS growth", "prompt": "A company trades at $132.00 per share. Current annual EPS is $6.00; forecast annual EPS three years from now is $9.585. Revenue is expected to grow 28% per year, and the peer median P/E is 19×. For this question, use the company’s current EPS in P/E and annual compound growth from current EPS to the Year 3 EPS forecast in PEG. Enter growth as percentage points, such as 20 for 20%. What is PEG, rounded to two decimals?", "fingerprint": "435f62541e6427651c055592d713a6b9f95ca724d07ebc15d325687bbe6309fe", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P048", "locations": [] }, { "id": "P049", "canonical_id": "P049", "bank": "ef", "week": 5, "title": "PEG after forecast share dilution", "prompt": "A firm trades at $108.00 per share. Current net income available to common shareholders is $210 million and current diluted shares are 60 million. Three years from now, forecast common net income is $350 million and diluted shares are 70 million. Use current diluted EPS for P/E and three-year compound diluted-EPS growth for PEG; enter growth in percentage points. What is PEG, rounded to two decimals?", "fingerprint": "e87cb25d4c102363dd720a4811307aabd105c9ce79b844439fe838a2e1544436", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P049", "locations": [] }, { "id": "P050", "canonical_id": "P050", "bank": "ef", "week": 5, "title": "Normalized EBITDA and comparable value", "prompt": "A company reports EBITDA of $5.30 million. This includes a one-time legal expense of $0.80 million and a nonrecurring gain of $0.40 million. Treat both as nonrecurring for this exercise. Apply a 8.0× EV/EBITDA multiple to normalized EBITDA. Excess cash is $1.5 million and debt is $5.0 million, with no other claims. What is indicated equity value, expressed in millions and rounded to two decimal places?", "fingerprint": "c2a907f2c2029b20d4b872013c0b7de117ca461513599fd17af63cb26c667138", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P050", "locations": [] }, { "id": "P051", "canonical_id": "P051", "bank": "ef", "week": 5, "title": "Consistent revenue basis in comparable valuation", "prompt": "Comparable-company analysis supports 5.0× next-twelve-month revenue for the subject’s risk and growth profile. The subject has trailing-twelve-month revenue of $7.4 million and next-twelve-month revenue of $9.6 million. The multiple yields enterprise value. Excess cash is $2.7 million and debt is $6.9 million. No other claims exist. What is indicated current equity value, expressed in millions and rounded to two decimal places?", "fingerprint": "8827e7a17e37ca1fec4569f58ca4d03e0a8d1bad3803c183310c0222abe1bd55", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P051", "locations": [] }, { "id": "P052", "canonical_id": "P052", "bank": "ef", "week": 5, "title": "VC pricing after future dilution", "prompt": "A VC invests $7 million today. At the end of Year 4, projected exit enterprise value is $140 million, exit debt is $18 million, and exit excess cash is $6 million. The investor targets a 28% annual return and expects a future financing to reduce its percentage ownership by 20% relative to its post-investment stake today. Assume no interim distributions, preferences, or other dilution. What current pre-money equity value is consistent with these assumptions, expressed in millions and rounded to two decimal places?", "fingerprint": "0e80c3186922bed62ec17d726566ea9e66e2a955e6aad921d9020992b36af51f", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P052", "locations": [] }, { "id": "P053", "canonical_id": "P053", "bank": "ef", "week": 6, "title": "Fully diluted ownership after a priced round", "prompt": "Before financing, a company has 6.0 million founder shares, 1.0 million issued employee shares, and 1.0 million unissued shares reserved for options. The round uses a $16 million pre-money valuation and includes the entire existing option reserve in the fully diluted pre-money share count. An investor puts in $4 million. There is no pool top-up or other security. What is founders’ post-round fully diluted ownership, expressed as a percentage and rounded to two decimal places?", "fingerprint": "c160a23a541861e6747e1c0ea93f48cbae015b131cef5a3a76c68ae38f5fad7a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P053", "locations": [] }, { "id": "P054", "canonical_id": "P054", "bank": "ef", "week": 6, "title": "Founder ownership across two financings", "prompt": "Founders initially own 72% of fully diluted equity. A Series A investor receives 20% of the company immediately after its financing. Later, Series B investors receive 25% of the company immediately after their financing. Founders do not invest further or sell existing shares. There are no option-pool changes, convertibles, or other capitalization changes. What percentage do founders own after Series B, rounded to two decimals?", "fingerprint": "5689cbe6a82935c7ec0da9604b1ccaef46572895eeda6dde79e513150e566550", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "P054", "locations": [] }, { "id": "P055", "canonical_id": "P055", "bank": "ef", "week": 6, "title": "Pre-money option-pool top-up and founder dilution", "prompt": "Current fully diluted shares total 8.0 million, including 5.5 million founder shares and 0.5 million unallocated option-pool shares. A new investor invests $6 million at a $18 million pre-money valuation. Before pricing, the unallocated pool is increased so that it equals 15% of post-financing fully diluted shares. All top-up shares are included in the pre-money denominator used to set the new share price. No other changes occur. What is founders’ final fully diluted ownership, expressed as a percentage and rounded to two decimal places?", "fingerprint": "311349fe51b00358c3ad10697ed19043559b7cabd0c55f86af9ee220cbdca94c", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P055", "locations": [] }, { "id": "P056", "canonical_id": "P056", "bank": "ef", "week": 6, "title": "Post-money SAFEs followed by new equity", "prompt": "Founders own all equity before two post-money SAFEs: $0.75 million at a $7.5 million post-money cap and $0.60 million at a $10.0 million post-money cap. For this simplified cap-binding model, each SAFE buys its investment divided by its own cap immediately before the priced round; the SAFEs do not dilute one another. The priced round then sells 20% of post-round equity to new investors. There is no option pool or other dilution. What is final founder ownership, expressed as a percentage and rounded to two decimal places?", "fingerprint": "377513ca5186ebd5d5a8d5d92a9570fd189b3b33786abaf4fada56b369529940", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P056", "locations": [] }, { "id": "P057", "canonical_id": "P057", "bank": "ef", "week": 6, "title": "Convertible note with interest, cap, and discount", "prompt": "A note has principal of $0.8 million and simple annual interest of 8% for 1.5 years. Both principal and accrued interest convert. New investors pay $3.00 per share. The note converts at the lower of a 20% discount to that price or a $10 million valuation cap divided by 5 million pre-conversion fully diluted shares. The cap denominator excludes the note itself and new-round shares. How many shares does the note receive, rounded to the nearest share?", "fingerprint": "7a9cf011a84e7fd6b3113c2b583fb3f2031b1b6dd7cd35e82a0ee910dff235dc", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P057", "locations": [] }, { "id": "P058", "canonical_id": "P058", "bank": "ef", "week": 6, "title": "Nonparticipating preferred at exit", "prompt": "An investor paid $4 million for 25% ownership on an as-converted basis. Its preferred shares carry a 1.5× nonparticipating liquidation preference. At exit, $28 million is available to distribute after all debt and transaction costs. The investor may either take its preference or convert to common, but cannot do both. There are no other preferred claims. How much does the investor receive, expressed in millions and rounded to two decimal places?", "fingerprint": "2264a00f62a7cfe060be5c9f09e49d4bd4da64d4e33a4f408e218ce031adffe6", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P058", "locations": [] }, { "id": "P059", "canonical_id": "P059", "bank": "ef", "week": 6, "title": "Uncapped participating preferred proceeds", "prompt": "A preferred investor paid $3 million and owns 20% on an as-converted basis. The shares have a 1× participating liquidation preference with no participation cap. The exit produces $24 million for shareholders after debt and costs. The investor receives its preference first and then participates in the remaining proceeds at its as-converted percentage. No other preferred claims exist. What is the investor’s distribution, expressed in millions and rounded to two decimal places?", "fingerprint": "04f1d67029a25f619c3490d6aa40ae53769725e07ed35a25e9c58b1ae275a520", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P059", "locations": [] }, { "id": "P060", "canonical_id": "P060", "bank": "ef", "week": 6, "title": "Participation cap versus voluntary conversion", "prompt": "An investor paid $4 million for 25% as-converted ownership. It has a 1× participating preference capped at 2× its original investment in total distributions while remaining preferred. It may instead convert to common and take its uncapped as-converted percentage. Exit proceeds available to shareholders are $40 million; there are no other preferred claims. What is the investor’s optimal payout, expressed in millions and rounded to two decimal places?", "fingerprint": "669ed22a644cea71afff31b4d79944f34b682873ee813a159ffdd185bbd6113f", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P060", "locations": [] }, { "id": "P061", "canonical_id": "P061", "bank": "ef", "week": 6, "title": "Equal-ranking preference claims in a shortfall", "prompt": "Series A and Series B have equal-ranking nonparticipating liquidation-preference claims of $6.0 million and $4.0 million. Exit cash available to shareholders is only $7.0 million. The documents allocate a preference shortfall pro rata to the dollar size of the claims, and neither series converts. Common shareholders receive nothing until both claims are paid. What does Series A receive, expressed in millions and rounded to two decimal places?", "fingerprint": "f4c61cf132fdbfea45f653948b9ebcce5291bf42902f4aab9a9b7f27378ea130", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "P061", "locations": [] }, { "id": "P062", "canonical_id": "P062", "bank": "ef", "week": 6, "title": "Senior and junior liquidation preferences", "prompt": "An exit provides $7.5 million after debt and transaction costs. Series B has a senior liquidation claim of $5.0 million. Series A has a junior liquidation claim of $4.0 million. Both are nonparticipating, and neither converts. The documents pay Series B in full before Series A; common is paid last. What does Series A receive, expressed in millions and rounded to two decimal places?", "fingerprint": "4fe9020722d514b9be1a381affd248c17ea59ad4b5b9b204f145e6fa32a3d3c2", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "P062", "locations": [] }, { "id": "P063", "canonical_id": "P063", "bank": "ef", "week": 6, "title": "Full-ratchet protection and founder ownership", "prompt": "Founders hold 6.0 million common shares. An earlier investor holds 2.0 million preferred shares, originally convertible one-for-one at a $4.00 conversion price. A down round raises $4.0 million at $2.00 per share. Full-ratchet protection resets the earlier conversion price to the down-round price; its new conversion ratio equals old conversion price divided by new conversion price. No pool or other securities exist. What is founders’ fully diluted ownership after the round, expressed as a percentage and rounded to two decimal places?", "fingerprint": "4c5dd17711db8f4f2db3e3ca7b5f0124e2648653b29997f34e5263d5cfd2109c", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P063", "locations": [] }, { "id": "P064", "canonical_id": "P064", "bank": "ef", "week": 6, "title": "Broad-based weighted-average anti-dilution", "prompt": "Preferred stock’s existing conversion price is $4.00. For the contractual broad-based weighted-average adjustment, A is the 10.0 million common-equivalent shares outstanding before the new issue, B is the number of shares the new consideration would buy at the old conversion price, and C is the number actually issued. A down round raises $6.0 million at $2.00 per share. Apply the standard adjustment CPnew = CPold × (A+B)/(A+C). What is the adjusted conversion price, rounded to two decimals?", "fingerprint": "f8114cb2d33c9307faf68f8ff86b4f4262a4266a125153e3b71cccca33fd7f44", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P064", "locations": [] }, { "id": "P065", "canonical_id": "P065", "bank": "ef", "week": 6, "title": "Pro-rata investment when the outside check is fixed", "prompt": "An existing investor owns 20% of a startup’s fully diluted shares before a round. Outside investors commit $4.8 million at a fixed $16 million pre-money valuation. The existing investor can invest an additional amount at the same price to maintain its 20% ownership after the entire round. Its check increases total round proceeds rather than replacing outside money. No other capitalization changes occur. What must it invest, expressed in millions and rounded to two decimal places?", "fingerprint": "a708244b544715676203bf782a5e5340f36ab05d86a053ae71b7121b640ad72d", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P065", "locations": [] }, { "id": "P066", "canonical_id": "P066", "bank": "ef", "week": 6, "title": "Fully diluted ownership after a priced round", "prompt": "Before financing, a company has 7.0 million founder shares, 1.5 million issued employee shares, and 1.5 million unissued shares reserved for options. The round uses a $20 million pre-money valuation and includes the entire existing option reserve in the fully diluted pre-money share count. An investor puts in $5 million. There is no pool top-up or other security. What is founders’ post-round fully diluted ownership, expressed as a percentage and rounded to two decimal places?", "fingerprint": "0545ece3d9526cf0fed9f0a9a3d28c9ac69664cbc12062d630fa4ec9fbfde6c2", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P066", "locations": [] }, { "id": "P067", "canonical_id": "P067", "bank": "ef", "week": 6, "title": "Founder ownership across two financings", "prompt": "Founders initially own 68% of fully diluted equity. A Series A investor receives 18% of the company immediately after its financing. Later, Series B investors receive 22% of the company immediately after their financing. Founders do not invest further or sell existing shares. There are no option-pool changes, convertibles, or other capitalization changes. What percentage do founders own after Series B, rounded to two decimals?", "fingerprint": "771373a45bc505dae000a1a8a2bda61270064ff4f563af61378d7685cc5b9865", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "P067", "locations": [] }, { "id": "P068", "canonical_id": "P068", "bank": "ef", "week": 6, "title": "Pre-money option-pool top-up and founder dilution", "prompt": "Current fully diluted shares total 10.0 million, including 7.0 million founder shares and 0.8 million unallocated option-pool shares. A new investor invests $8 million at a $24 million pre-money valuation. Before pricing, the unallocated pool is increased so that it equals 16% of post-financing fully diluted shares. All top-up shares are included in the pre-money denominator used to set the new share price. No other changes occur. What is founders’ final fully diluted ownership, expressed as a percentage and rounded to two decimal places?", "fingerprint": "0124b094cb43282d5040b5db3de171e4f31303c8cfdfc4dfcdee525568fc904f", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P068", "locations": [] }, { "id": "P069", "canonical_id": "P069", "bank": "ef", "week": 6, "title": "Post-money SAFEs followed by new equity", "prompt": "Founders own all equity before two post-money SAFEs: $1.00 million at a $8.0 million post-money cap and $0.90 million at a $12.0 million post-money cap. For this simplified cap-binding model, each SAFE buys its investment divided by its own cap immediately before the priced round; the SAFEs do not dilute one another. The priced round then sells 25% of post-round equity to new investors. There is no option pool or other dilution. What is final founder ownership, expressed as a percentage and rounded to two decimal places?", "fingerprint": "518f29e911242fb8ed4409947ce0124177cdd1c2d6b28baaaa015f761a17bbfa", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P069", "locations": [] }, { "id": "P070", "canonical_id": "P070", "bank": "ef", "week": 6, "title": "Convertible note with interest, cap, and discount", "prompt": "A note has principal of $1.1 million and simple annual interest of 6% for 2 years. Both principal and accrued interest convert. New investors pay $4.00 per share. The note converts at the lower of a 25% discount to that price or a $13 million valuation cap divided by 5 million pre-conversion fully diluted shares. The cap denominator excludes the note itself and new-round shares. How many shares does the note receive, rounded to the nearest share?", "fingerprint": "53ceba6f3f484c6a001f398bc7c3bfe87333bb94c83582f87e01b50acddfacc6", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P070", "locations": [] }, { "id": "P071", "canonical_id": "P071", "bank": "ef", "week": 6, "title": "Nonparticipating preferred at exit", "prompt": "An investor paid $5 million for 30% ownership on an as-converted basis. Its preferred shares carry a 1.2× nonparticipating liquidation preference. At exit, $24 million is available to distribute after all debt and transaction costs. The investor may either take its preference or convert to common, but cannot do both. There are no other preferred claims. How much does the investor receive, expressed in millions and rounded to two decimal places?", "fingerprint": "c3eb2dfb47983ed55121176dee2f03068c4e23afc12ce73a33e4fb3db74ba105", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P071", "locations": [] }, { "id": "P072", "canonical_id": "P072", "bank": "ef", "week": 6, "title": "Uncapped participating preferred proceeds", "prompt": "A preferred investor paid $4 million and owns 25% on an as-converted basis. The shares have a 1× participating liquidation preference with no participation cap. The exit produces $30 million for shareholders after debt and costs. The investor receives its preference first and then participates in the remaining proceeds at its as-converted percentage. No other preferred claims exist. What is the investor’s distribution, expressed in millions and rounded to two decimal places?", "fingerprint": "ae933c0bf5593abc503484b2b53a1fb826537d1f895be60f4ee4634ca3f361c6", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P072", "locations": [] }, { "id": "P073", "canonical_id": "P073", "bank": "ef", "week": 6, "title": "Participation cap versus voluntary conversion", "prompt": "An investor paid $5 million for 30% as-converted ownership. It has a 1× participating preference capped at 2× its original investment in total distributions while remaining preferred. It may instead convert to common and take its uncapped as-converted percentage. Exit proceeds available to shareholders are $45 million; there are no other preferred claims. What is the investor’s optimal payout, expressed in millions and rounded to two decimal places?", "fingerprint": "ed5e9811367b897640a7fb77058fe6d0dcaee556a82d89ed0cbd0bb2df290107", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P073", "locations": [] }, { "id": "P074", "canonical_id": "P074", "bank": "ef", "week": 6, "title": "Equal-ranking preference claims in a shortfall", "prompt": "Series A and Series B have equal-ranking nonparticipating liquidation-preference claims of $7.5 million and $5.0 million. Exit cash available to shareholders is only $8.0 million. The documents allocate a preference shortfall pro rata to the dollar size of the claims, and neither series converts. Common shareholders receive nothing until both claims are paid. What does Series A receive, expressed in millions and rounded to two decimal places?", "fingerprint": "c5e4cc5ece13c2e4cfb039efd9ef320c858aa077910fbdf2324cbc82bf055616", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "P074", "locations": [] }, { "id": "P075", "canonical_id": "P075", "bank": "ef", "week": 6, "title": "Senior and junior liquidation preferences", "prompt": "An exit provides $9.0 million after debt and transaction costs. Series B has a senior liquidation claim of $6.0 million. Series A has a junior liquidation claim of $5.0 million. Both are nonparticipating, and neither converts. The documents pay Series B in full before Series A; common is paid last. What does Series A receive, expressed in millions and rounded to two decimal places?", "fingerprint": "9db35b57d418454964fdcefb26c7102494c701beaa21f9fae94dabf62ccf6976", "score": 2, "components": { "reasoning": 1, "steps": 1, "information": 0 }, "difficulty": "Easy", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Inputs and basis are directly specified.", "web_id": "P075", "locations": [] }, { "id": "P076", "canonical_id": "P076", "bank": "ef", "week": 6, "title": "Full-ratchet protection and founder ownership", "prompt": "Founders hold 7.0 million common shares. An earlier investor holds 2.5 million preferred shares, originally convertible one-for-one at a $4.80 conversion price. A down round raises $6.0 million at $2.40 per share. Full-ratchet protection resets the earlier conversion price to the down-round price; its new conversion ratio equals old conversion price divided by new conversion price. No pool or other securities exist. What is founders’ fully diluted ownership after the round, expressed as a percentage and rounded to two decimal places?", "fingerprint": "037a19886822b09b999bd519623c7b689a9c34e6fa8c2f9e534026f1a00b9e76", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P076", "locations": [] }, { "id": "P077", "canonical_id": "P077", "bank": "ef", "week": 6, "title": "Broad-based weighted-average anti-dilution", "prompt": "Preferred stock’s existing conversion price is $5.00. For the contractual broad-based weighted-average adjustment, A is the 12.0 million common-equivalent shares outstanding before the new issue, B is the number of shares the new consideration would buy at the old conversion price, and C is the number actually issued. A down round raises $8.0 million at $2.50 per share. Apply the standard adjustment CPnew = CPold × (A+B)/(A+C). What is the adjusted conversion price, rounded to two decimals?", "fingerprint": "4bc7ffafa17d369855bf11aba492417d1e57cd14569595ef0012acdd23f3ef70", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P077", "locations": [] }, { "id": "P078", "canonical_id": "P078", "bank": "ef", "week": 6, "title": "Pro-rata investment when the outside check is fixed", "prompt": "An existing investor owns 25% of a startup’s fully diluted shares before a round. Outside investors commit $6.0 million at a fixed $20 million pre-money valuation. The existing investor can invest an additional amount at the same price to maintain its 25% ownership after the entire round. Its check increases total round proceeds rather than replacing outside money. No other capitalization changes occur. What must it invest, expressed in millions and rounded to two decimal places?", "fingerprint": "06d90aa73668602aed04c398d5acdd361d9a490768d9e402c9840ae68d546c9e", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P078", "locations": [] }, { "id": "P079", "canonical_id": "P079", "bank": "ef", "week": 7, "title": "Investable capital after a fee step-down", "prompt": "A fund has $90 million of commitments, all of which will be called. It charges 2.00% per year on commitments for the first 4 years, then 1.50% per year on a fixed $52 million invested-capital fee base for the next 3 years. It also pays $2.2 million of fund expenses. Fees and expenses are paid from commitments. Ignore fee offsets, recycling, borrowing, and investment returns. How much capital remains available for investments, expressed in millions and rounded to two decimal places?", "fingerprint": "c4abc940620f8cb07fa6da35e931f1c3330e9261b72a592389fe89111ab95317", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P079", "locations": [] }, { "id": "P080", "canonical_id": "P080", "bank": "ef", "week": 7, "title": "Total value to paid-in capital", "prompt": "LPs have paid $72 million into a fund, including fees. They have received $54 million in cash distributions. Their remaining net asset value is $81 million, already net of accrued carry and unpaid fund liabilities. Total commitments are $100 million. What is net TVPI using the paid-in capital denominator, rounded to two decimals?", "fingerprint": "1234d191482843acd1ce87db47eff41c45d5815ce3941c79f699ba4813fb474b", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P080", "locations": [] }, { "id": "P081", "canonical_id": "P081", "bank": "ef", "week": 7, "title": "LP distribution after return of capital and carry", "prompt": "LPs contribute $80 million. At final liquidation, the fund has $142 million available for distribution after all fund expenses and fees. The waterfall first returns all LP contributed capital, then allocates remaining profit 20.0% to the GP and the balance to LPs. There is no preferred return, GP capital commitment, or earlier distribution. What total amount goes to LPs, expressed in millions and rounded to two decimal places?", "fingerprint": "9e4f301d4ca02753f29105e56b24ba527e4acead2065e45fc1dee129c1c4ed63", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P081", "locations": [] }, { "id": "P082", "canonical_id": "P082", "bank": "ef", "week": 7, "title": "Simple preferred return without catch-up", "prompt": "LPs contribute $70 million at time zero and receive no earlier distributions. The fund distributes $105 million after 3 years. The waterfall returns contributed capital, then pays LPs a 8% annual simple preferred return on that capital, then splits any remaining profit 80% to LPs and 20% to the GP. There is no catch-up or GP commitment. Fees are already reflected in the available proceeds. What is GP carry, expressed in millions and rounded to two decimal places?", "fingerprint": "efaa8e767cde0919d52688b1b4cacffa6fd02f62bc95e1e80f44bf8a7d7304f4", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P082", "locations": [] }, { "id": "P083", "canonical_id": "P083", "bank": "ef", "week": 7, "title": "Compounded preferred return without catch-up", "prompt": "LPs contribute $65 million today, with no interim contributions or distributions. After 4 years, $108 million is available after fees. The waterfall returns capital, pays an 8% annually compounded preferred return to LPs, and allocates any residual 80% to LPs and 20% to the GP. There is no catch-up or GP capital commitment. What is the GP’s final carry distribution, expressed in millions and rounded to two decimal places?", "fingerprint": "5ca99f485f5da44c98f69c8895a18fe84577bf9d2531021e77d798bd8f9c0e24", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P083", "locations": [] }, { "id": "P084", "canonical_id": "P084", "bank": "ef", "week": 7, "title": "Four-tier waterfall with full GP catch-up", "prompt": "At liquidation, $130 million is available. The LPA requires: first, return $80 million of LP capital; second, pay a stipulated $16 million accrued preferred return to LPs; third, allocate 100% to the GP until its cumulative share of distributed profit equals 20%; fourth, split further profit 80% LP and 20% GP. Contributed capital is excluded from the profit calculation. There are no GP contributions or earlier distributions. What is total GP carry, expressed in millions and rounded to two decimal places?", "fingerprint": "454ff990a2eb5d535c2e623e42522aacb5afdb571bdce645aaca7266b162c2f3", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P084", "locations": [] }, { "id": "P085", "canonical_id": "P085", "bank": "ef", "week": 7, "title": "An incomplete 80% GP catch-up tier", "prompt": "A waterfall has $123 million available. It first returns $100 million of LP capital and pays LPs $18 million of accrued preferred profit. The next tier allocates 80% to the GP and 20% to LPs until the GP has received 20% of all distributed profit, excluding returned capital. Any later residual is split 20% GP and 80% LP. There are no prior distributions or GP contributions. What total does the GP receive, expressed in millions and rounded to two decimal places?", "fingerprint": "3e60de3b74b80f37dd1fc7f7bca926f1dfd903dc8aba4c716dfca0b1b219d464", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P085", "locations": [] }, { "id": "P086", "canonical_id": "P086", "bank": "ef", "week": 7, "title": "Catch-up after staggered capital calls", "prompt": "LPs contribute $55 million 4 years before liquidation and $35 million 2 years before liquidation. There are no earlier distributions. Each contribution earns an 8% annually compounded preferred return only for the time it is outstanding. After capital and all preferred profit are paid, a 100% GP catch-up makes GP profit equal 20% of cumulative distributed profit, followed by an 80/20 residual split. Assume enough cash to complete catch-up. What is the catch-up tranche alone, expressed in millions and rounded to two decimal places?", "fingerprint": "1435d59818495b4bbfde3bb5a563557250ab511d0453b48673b47ac8b209ab09", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P086", "locations": [] }, { "id": "P087", "canonical_id": "P087", "bank": "ef", "week": 7, "title": "Cash clawback after applying escrow", "prompt": "A fund invests $28 million in Deal A and $32 million in Deal B. Deal A exits first for $76 million, and the GP is allocated 20% of that deal’s profit as carry; 25% of this carry is held in escrow and the rest is paid in cash. Deal B later exits for $16 million. Final permitted GP carry is 20% of aggregate fund profit after both investment costs. Apply escrow first to any overpaid carry. Ignore taxes, fees, and preferences. How much additional cash must the GP return beyond escrow, expressed in millions and rounded to two decimal places?", "fingerprint": "3f34ba6150b7634d58a1d2c3c80925b09837d07c905c0b1b928a191ffda6c4db", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P087", "locations": [] }, { "id": "P088", "canonical_id": "P088", "bank": "ef", "week": 7, "title": "LP net IRR after carry", "prompt": "LPs pay $50 million at time zero, including all fees and fund expenses. There are no other capital calls or interim distributions. After 6 years, the fund has $110 million available before carry. LPs first receive their full $50 million back; remaining profit is split 80% LP and 20% GP, with no preferred return. What is LP net annual IRR, expressed as a percentage and rounded to one decimal place?", "fingerprint": "256769575a344184cd7925d20c7d423a9e73c190223f350b39a8a33025ec87c4", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P088", "locations": [] }, { "id": "P089", "canonical_id": "P089", "bank": "ef", "week": 7, "title": "Investable capital after a fee step-down", "prompt": "A fund has $120 million of commitments, all of which will be called. It charges 2.25% per year on commitments for the first 3 years, then 1.75% per year on a fixed $70 million invested-capital fee base for the next 4 years. It also pays $3.0 million of fund expenses. Fees and expenses are paid from commitments. Ignore fee offsets, recycling, borrowing, and investment returns. How much capital remains available for investments, expressed in millions and rounded to two decimal places?", "fingerprint": "70e46fd28035ad57a647a604ade153d5c39ef70c89598633f2748bdb80f04d81", "score": 5, "components": { "reasoning": 1, "steps": 2, "information": 2 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P089", "locations": [] }, { "id": "P090", "canonical_id": "P090", "bank": "ef", "week": 7, "title": "Total value to paid-in capital", "prompt": "LPs have paid $85 million into a fund, including fees. They have received $68 million in cash distributions. Their remaining net asset value is $102 million, already net of accrued carry and unpaid fund liabilities. Total commitments are $120 million. What is net TVPI using the paid-in capital denominator, rounded to two decimals?", "fingerprint": "c3f2991b7dd536e9044d0d4130da9ad00082cc149cc584f2cdbd4593c197a696", "score": 3, "components": { "reasoning": 1, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P090", "locations": [] }, { "id": "P091", "canonical_id": "P091", "bank": "ef", "week": 7, "title": "LP distribution after return of capital and carry", "prompt": "LPs contribute $100 million. At final liquidation, the fund has $178 million available for distribution after all fund expenses and fees. The waterfall first returns all LP contributed capital, then allocates remaining profit 22.5% to the GP and the balance to LPs. There is no preferred return, GP capital commitment, or earlier distribution. What total amount goes to LPs, expressed in millions and rounded to two decimal places?", "fingerprint": "c481916a08e7ef7fee4b070736a74ba7f765196190026e2e07e2f1efcf96eaf2", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P091", "locations": [] }, { "id": "P092", "canonical_id": "P092", "bank": "ef", "week": 7, "title": "Simple preferred return without catch-up", "prompt": "LPs contribute $90 million at time zero and receive no earlier distributions. The fund distributes $130 million after 4 years. The waterfall returns contributed capital, then pays LPs a 7% annual simple preferred return on that capital, then splits any remaining profit 80% to LPs and 20% to the GP. There is no catch-up or GP commitment. Fees are already reflected in the available proceeds. What is GP carry, expressed in millions and rounded to two decimal places?", "fingerprint": "b6e75bc51d1cfa890b3aee429ac49115290c6524ddb0125a3564a220c675c6d3", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P092", "locations": [] }, { "id": "P093", "canonical_id": "P093", "bank": "ef", "week": 7, "title": "Compounded preferred return without catch-up", "prompt": "LPs contribute $85 million today, with no interim contributions or distributions. After 3 years, $132 million is available after fees. The waterfall returns capital, pays an 8% annually compounded preferred return to LPs, and allocates any residual 80% to LPs and 20% to the GP. There is no catch-up or GP capital commitment. What is the GP’s final carry distribution, expressed in millions and rounded to two decimal places?", "fingerprint": "c3832a441bb1e8f7cd03a52eddd197b56be511f701a508b9fc93e38361e329f7", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P093", "locations": [] }, { "id": "P094", "canonical_id": "P094", "bank": "ef", "week": 7, "title": "Four-tier waterfall with full GP catch-up", "prompt": "At liquidation, $165 million is available. The LPA requires: first, return $100 million of LP capital; second, pay a stipulated $22 million accrued preferred return to LPs; third, allocate 100% to the GP until its cumulative share of distributed profit equals 20%; fourth, split further profit 80% LP and 20% GP. Contributed capital is excluded from the profit calculation. There are no GP contributions or earlier distributions. What is total GP carry, expressed in millions and rounded to two decimal places?", "fingerprint": "3a944e90c544e53f04e886b05161e5cdfd5954dac08789519bfe654952e72b41", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P094", "locations": [] }, { "id": "P095", "canonical_id": "P095", "bank": "ef", "week": 7, "title": "An incomplete 80% GP catch-up tier", "prompt": "A waterfall has $151 million available. It first returns $120 million of LP capital and pays LPs $24 million of accrued preferred profit. The next tier allocates 80% to the GP and 20% to LPs until the GP has received 20% of all distributed profit, excluding returned capital. Any later residual is split 20% GP and 80% LP. There are no prior distributions or GP contributions. What total does the GP receive, expressed in millions and rounded to two decimal places?", "fingerprint": "e0aeafe4059438af017a0c32a3ac54c89236d39d42ff0406295d501eea408705", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P095", "locations": [] }, { "id": "P096", "canonical_id": "P096", "bank": "ef", "week": 7, "title": "Catch-up after staggered capital calls", "prompt": "LPs contribute $70 million 3 years before liquidation and $40 million 1 years before liquidation. There are no earlier distributions. Each contribution earns an 8% annually compounded preferred return only for the time it is outstanding. After capital and all preferred profit are paid, a 100% GP catch-up makes GP profit equal 20% of cumulative distributed profit, followed by an 80/20 residual split. Assume enough cash to complete catch-up. What is the catch-up tranche alone, expressed in millions and rounded to two decimal places?", "fingerprint": "992914c4b00d8392e76e7315d5abed6c5d2142818c26921595401aa4202d2b42", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P096", "locations": [] }, { "id": "P097", "canonical_id": "P097", "bank": "ef", "week": 7, "title": "Cash clawback after applying escrow", "prompt": "A fund invests $35 million in Deal A and $40 million in Deal B. Deal A exits first for $93 million, and the GP is allocated 20% of that deal’s profit as carry; 25% of this carry is held in escrow and the rest is paid in cash. Deal B later exits for $22 million. Final permitted GP carry is 20% of aggregate fund profit after both investment costs. Apply escrow first to any overpaid carry. Ignore taxes, fees, and preferences. How much additional cash must the GP return beyond escrow, expressed in millions and rounded to two decimal places?", "fingerprint": "acbe2913532765e3713ba073f976a6226edfe57626c626bc5495b22845da52e2", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P097", "locations": [] }, { "id": "P098", "canonical_id": "P098", "bank": "ef", "week": 7, "title": "LP net IRR after carry", "prompt": "LPs pay $60 million at time zero, including all fees and fund expenses. There are no other capital calls or interim distributions. After 7 years, the fund has $138 million available before carry. LPs first receive their full $60 million back; remaining profit is split 80% LP and 20% GP, with no preferred return. What is LP net annual IRR, expressed as a percentage and rounded to one decimal place?", "fingerprint": "d6115e1b54b51e70d5ef588839e98454178448b64e78979e4e7f0bca02b5e64a", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P098", "locations": [] }, { "id": "P099", "canonical_id": "P099", "bank": "ef", "week": 8, "title": "Startup CAPM from two public comparables", "prompt": "Two comparable firms have equity betas of 1.68 and 1.44, with market debt/equity ratios of 0.50 and 0.25, respectively. Use a 25% tax rate, zero debt beta, and the standard tax-adjusted beta unlevering relation. Average the two unlevered betas equally, then relever at the startup’s target debt/equity ratio of 0.30. The risk-free rate is 4.0% and market equity risk premium is 5.5%. Assume no extra premium. What CAPM cost of equity results, expressed as a percentage and rounded to two decimal places?", "fingerprint": "3c0c70de80f5f55cf89dd8066bcb447954a15a513b313c84e101bc83ad701cb5", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P099", "locations": [] }, { "id": "P100", "canonical_id": "P100", "bank": "ef", "week": 8, "title": "WACC with market weights and usable tax shields", "prompt": "A company has equity market value of $28 million and debt market value of $12 million. Book equity is $14 million. Its cost of equity is 16%, pre-tax debt cost is 9.0%, and tax rate is 25%. Assume interest deductions are fully usable now, no preferred equity exists, and this capital mix is the target structure. What WACC should discount operating FCFF of matching risk, expressed as a percentage and rounded to two decimal places?", "fingerprint": "1531644894f7e5f330aa6dc049cf166437c5a69c00cc8553fe320ddae9492547", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P100", "locations": [] }, { "id": "P101", "canonical_id": "P101", "bank": "ef", "week": 8, "title": "Debt capacity and the remaining equity raise", "prompt": "A company needs $3.2 million of new funding and can supply $0.5 million internally. Its Year 1–3 cash available for debt service is $0.84, $0.70, and $0.57 million. A new three-year loan repays one-third of original principal at each year-end and charges 10% annual interest on beginning-of-year principal. The lender requires debt-service coverage of at least 1.5× each year. There is no existing debt, balloon payment, or other debt limit. Using maximum feasible debt, how much equity must be raised, expressed in millions and rounded to two decimal places?", "fingerprint": "37d2db4f053bdaaf661d99596d2c26983bd94ff5c3dc5b144010fdd4105ea28c", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P101", "locations": [] }, { "id": "P102", "canonical_id": "P102", "bank": "ef", "week": 8, "title": "APV with a finite interest tax shield", "prompt": "A project’s unlevered value today is $18.0 million. It will be financed partly by $5.0 million of fixed interest-only debt outstanding for 4 years, repaid at maturity. The annual debt rate is 8%, the tax rate is 25%, and interest deductions are fully usable each year. Discount the annual tax shields at the debt rate. Financing creates a one-time $0.3 million fee today. Ignore other financing effects. What is adjusted present value, expressed in millions and rounded to two decimal places?", "fingerprint": "d7e075358ce4caf7750e2c01a77766601ceb15abb60e75c67ffdc421174deea4", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P102", "locations": [] }, { "id": "P103", "canonical_id": "P103", "bank": "ef", "week": 8, "title": "Startup CAPM from two public comparables", "prompt": "Two comparable firms have equity betas of 1.80 and 1.50, with market debt/equity ratios of 0.60 and 0.25, respectively. Use a 25% tax rate, zero debt beta, and the standard tax-adjusted beta unlevering relation. Average the two unlevered betas equally, then relever at the startup’s target debt/equity ratio of 0.40. The risk-free rate is 4.2% and market equity risk premium is 6.0%. Assume no extra premium. What CAPM cost of equity results, expressed as a percentage and rounded to two decimal places?", "fingerprint": "c2e110af9f7e5db0ceeafb55110856f487eb488d0b4dcfbd4056d67063229dfb", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P103", "locations": [] }, { "id": "P104", "canonical_id": "P104", "bank": "ef", "week": 8, "title": "WACC with market weights and usable tax shields", "prompt": "A company has equity market value of $36 million and debt market value of $14 million. Book equity is $18 million. Its cost of equity is 17%, pre-tax debt cost is 9.5%, and tax rate is 25%. Assume interest deductions are fully usable now, no preferred equity exists, and this capital mix is the target structure. What WACC should discount operating FCFF of matching risk, expressed as a percentage and rounded to two decimal places?", "fingerprint": "1f213fa4d00877a718a419748686f728656bcb55df5bcd45c1b202a124a832a1", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Risk, return, and cost of capital", "Financial statements / cash flow analysis" ], "prerequisite_note": "Prior finance methods to review: Risk, return, and cost of capital; Financial statements / cash flow analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": "P104", "locations": [] }, { "id": "P105", "canonical_id": "P105", "bank": "ef", "week": 8, "title": "Debt capacity and the remaining equity raise", "prompt": "A company needs $3.8 million of new funding and can supply $0.6 million internally. Its Year 1–3 cash available for debt service is $1.02, $0.84, and $0.66 million. A new three-year loan repays one-third of original principal at each year-end and charges 12% annual interest on beginning-of-year principal. The lender requires debt-service coverage of at least 1.4× each year. There is no existing debt, balloon payment, or other debt limit. Using maximum feasible debt, how much equity must be raised, expressed in millions and rounded to two decimal places?", "fingerprint": "4806af53175abed15fb620e3fca4efa4afa6259ec096766e9b73bdf1a40ef435", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P105", "locations": [] }, { "id": "P106", "canonical_id": "P106", "bank": "ef", "week": 8, "title": "APV with a finite interest tax shield", "prompt": "A project’s unlevered value today is $23.0 million. It will be financed partly by $6.0 million of fixed interest-only debt outstanding for 5 years, repaid at maturity. The annual debt rate is 9%, the tax rate is 25%, and interest deductions are fully usable each year. Discount the annual tax shields at the debt rate. Financing creates a one-time $0.4 million fee today. Ignore other financing effects. What is adjusted present value, expressed in millions and rounded to two decimal places?", "fingerprint": "02b6321f432812e7623b332b1714493cb9c745de707813b0e3307ce806fcdbfd", "score": 6, "components": { "reasoning": 1, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Apply one established rule or formula. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P106", "locations": [] }, { "id": "P107", "canonical_id": "P107", "bank": "ef", "week": 8, "title": "Expected cash flow and a systematic-risk discount rate", "prompt": "A startup project costs $4.0 million today and pays only at the end of Year 3. The business succeeds with probability 65%, paying $10.0 million; otherwise it pays $1.0 million. These are the only cash flows and the probabilities already capture project failure. An asset beta of 1.4, risk-free rate of 4%, and market equity risk premium of 6% are appropriate for discounting these expected unlevered cash flows under the model. There is no debt or tax adjustment. What is project NPV, expressed in millions and rounded to two decimal places?", "fingerprint": "402479dafa1e58b182d9b8fd11f5c9304e6d2e7eba09ca24d546f8814d951564", "score": 6, "components": { "reasoning": 2, "steps": 2, "information": 2 }, "difficulty": "Hard", "course_label": "143", "course_filter": "143", "domain": "Entrepreneurial finance", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Risk, return, and cost of capital", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Risk, return, and cost of capital; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. Two or three consequential operations or decisions. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": "P107", "locations": [] }, { "id": "re-w01-d043", "canonical_id": "re-w01-d043", "bank": "re", "week": 1, "title": "Title Objection Deadlines", "prompt": "Two days before a contractual deadline for title objections, a buyer discovers a recorded access easement crossing the property's planned loading area. The seller says trucks have always used the site and suggests discussing the easement after closing.\nThe contract requires written objections before the deadline, and the parties have not agreed to an extension. The buyer has not yet reviewed the easement document or compared it with the survey.\nWhat should the buyer do next to evaluate the risk to loading operations and preserve its contractual rights?", "fingerprint": "1568d651470c2eb7a252400244170b3c5fed9881aaff0ed28c72163db761b782", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": null, "locations": [ { "deck_id": "1uUA_vsHNSixXAuHT2GX5rzJpOiK-nJAV", "deck_name": "Week 1 - FNCE 118 & FNCE 128 - What Is Real Estate and How Is It Valued - Shared Master.pptx", "question_slide": 43, "answer_slides": [ 44 ], "continuation_slides": [], "match": "current deck-only question" } ] }, { "id": "re-w04-d051", "canonical_id": "re-w04-d051", "bank": "re", "week": 4, "title": "Operating Forecast Drivers", "prompt": "An analyst is preparing a property forecast using last year's verified operating results as a starting point. The analyst has identified the following changes and contract terms:\n• Market rents are expected to increase by 4%.\n• A tenant occupying a large suite has confirmed that it will leave in June, and leasing the space to a replacement tenant may involve downtime.\n• Insurance costs will increase when the policy renews.\n• The cleaning contract requires a fixed monthly minimum payment, even when space is vacant.\nThe analyst proposes forecasting this year's net operating income (NOI) by increasing last year's NOI by 4%.\nWhich approach would produce the most supportable forecast?", "fingerprint": "29bd9ba60b34a0713d7230c7d7efdfbc7f67bfd261c033d7601f3f99951eb8f8", "score": 6, "components": { "reasoning": 3, "steps": 1, "information": 2 }, "difficulty": "Hard", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Evaluate interacting constraints or competing explanations. One substantive operation or decision. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": null, "locations": [ { "deck_id": "18NFmE4nRtpGffD5CVFbq7RN_CTc4bNAd", "deck_name": "Week 4 - FNCE 118 & FNCE 128 - Cash Flow Modeling and Pro Forma Forecasting - Shared Master.pptx", "question_slide": 51, "answer_slides": [ 52 ], "continuation_slides": [], "match": "current deck-only question" } ] }, { "id": "re-w03-d019", "canonical_id": "re-w03-d019", "bank": "re", "week": 3, "title": "Preferred Return Distribution", "prompt": "A real estate investment is financed with $12 million of senior debt, $3 million of mezzanine debt, $4 million of preferred equity, and $6 million of common equity. After paying operating expenses and all required senior and mezzanine debt payments, $500,000 of cash remains available for distribution to equity investors.\nThe preferred equity earns a 9% annual current preferred return, which must be paid before any distributions to common equity. Assume there are no unpaid preferred returns from prior years and no return of capital is required this year.\nHow should the remaining $500,000 be distributed?", "fingerprint": "801fe7ea6ed673a0dfbc1152ce9c46bd010c31cbb5822f6fba98236bc8235691", "score": 4, "components": { "reasoning": 1, "steps": 2, "information": 1 }, "difficulty": "Medium", "course_label": "128 Finance application", "course_filter": "128", "domain": "Distribution waterfalls", "finance_methods_to_review": [], "prerequisite_note": "Course-specific application; no particular FNCE121 calculation is needed for this item.", "rationale": "Apply one established rule or formula. Two or three consequential operations or decisions. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": null, "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 19, "answer_slides": [ 20 ], "continuation_slides": [], "match": "current deck-only question" } ] }, { "id": "re-w03-d052", "canonical_id": "re-w03-d052", "bank": "re", "week": 3, "title": "Mortgage Financing NPV", "prompt": "An investor finances a neighborhood retail center with a three-year, interest-only mortgage of $2,000,000. Interest is 6.00% annually, paid at each year-end. The entire principal is due with the third interest payment.\nThe lender withholds a 2.00% origination fee at closing. Comparable debt has an 8.00% effective annual market yield. Assume full payment as scheduled, no other fees, and no taxes.\nWhat is the financing NPV to the borrower at the 8.00% benchmark, rounded to the nearest $100?", "fingerprint": "8b80877363e6fee7a300357d52e70dc030c9cc774eca999c118278553180db6d", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Time value of money and discounted cash flows", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": null, "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 52, "answer_slides": [ 53 ], "continuation_slides": [], "match": "current deck-only question" } ] }, { "id": "re-w03-d055", "canonical_id": "re-w03-d055", "bank": "re", "week": 3, "title": "Mortgage Cost After Fees", "prompt": "An investor finances an industrial property with a $1,000,000 mortgage at a 6.00% nominal annual rate, compounded monthly. The loan amortizes over 30 years and matures after five years.\nA 2.00% origination fee is withheld at closing. Monthly payments are $5,995.51. The balloon immediately after the 60th payment is $930,543.57.\nAssume month-end payments, full repayment at maturity, and no other fees or taxes. What is the borrower's effective annual financing cost, including the fee, rounded to two decimals?", "fingerprint": "4a7979625661b0c6be3e0afa43134c1d7e4e218fc8a8853983b339c24aae7c0b", "score": 7, "components": { "reasoning": 2, "steps": 3, "information": 2 }, "difficulty": "Hard", "course_label": "128 Finance application", "course_filter": "128", "domain": "Debt underwriting and mortgage analysis", "finance_methods_to_review": [ "Time value of money / capital budgeting", "Financing and investment analysis" ], "prerequisite_note": "Prior finance methods to review: Time value of money / capital budgeting; Financing and investment analysis. Course-specific real estate or venture methods are developed in the course.", "rationale": "Compare alternatives or infer an implication. A longer dependent calculation, iterative solve, or linked cash-flow sequence. Reconcile timing, a table, multiple records, or conflicting constraints.", "web_id": null, "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 55, "answer_slides": [ 56 ], "continuation_slides": [], "match": "current deck-only question" } ] }, { "id": "re-w03-d095", "canonical_id": "re-w03-d095", "bank": "re", "week": 3, "title": "Partnership Control and Taxation", "prompt": "A sponsor forms a limited partnership to acquire a $20 million property. The sponsor serves as general partner and contributes 10% of the equity, while outside limited partners contribute the remaining 90%. The partnership agreement gives the general partner authority over financing, leasing, operations, and disposition, subject to specified limited-partner approval rights.\nDuring the year, the partnership generates $1.2 million of taxable income but distributes only $300,000 of cash, retaining the remainder for property improvements.\nAssume the entity is taxed as a partnership for federal income tax purposes. Which statement best describes the arrangement?", "fingerprint": "07756fd54c8790db52241564735606bcb382c6f26270bf8e55cab0c4fdb19079", "score": 4, "components": { "reasoning": 2, "steps": 1, "information": 1 }, "difficulty": "Medium", "course_label": "118/128 Foundation", "course_filter": "118", "domain": "Property foundations", "finance_methods_to_review": [], "prerequisite_note": "Real estate concepts and basic arithmetic; no prior financial-management calculation assumed.", "rationale": "Compare alternatives or infer an implication. One substantive operation or decision. Select relevant inputs, units, denominator, or cash-flow basis.", "web_id": null, "locations": [ { "deck_id": "1APN3RC-cUSosxvTkjr0WgMZ8TWckshDR", "deck_name": "Week 3 - FNCE 118 & FNCE 128 - Capital Stack, Debt, and Investor Cash Flow - Shared Master.pptx", "question_slide": 95, "answer_slides": [ 96 ], "continuation_slides": [], "match": "current deck-only question" } ] } ] }