A property manager manages two large apartment buildings. They're older but well-maintained properties with a 96% occupancy rate. Based on analysis of market rates, the property manager should:
A. lower rental rates to get to 100% occupancy
B. maintain the status quo
C. raise rents, if competitive market analysis confirms this
D. refurbish the properties to improve desirability
Answer: C. raise rents, if competitive market analysis confirms this
Certainly the manager should raise (or lower) the rents if a competitive market analysis confirms the move. Only answer C is definitely true in all cases -- the CMA determines what level to set rents. (While answer A has some appeal, it's not the best answer: there might be reasons not to lower rents even to achieve higher occupancy. For example, perhaps a major employer is expanding soon and it would be a mistake to lock these units in a cheap prices.)
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AB Builders has 15-year bonds outstanding with a face value of $1,000 and a market price of $974. The bonds pay interest annually and have a yield to maturity of 4.03 percent. What is the coupon rate?
A. 3.80 percent B. 4.20 percent C. 4.25 percent D. 3.75 percent E. 3.95 percent
The typical sales commission as a percent of the market price of the home is between
A) 1 and 3%. B) 4 and 5%. C) 6 and 7%. D) 8 and 9%.