The course also covers topics involving life insurance products, costs, pricing, settlement options, replacement, premium and costs computations, saving for retirement, annuity products and their costs, and social insurance. A discussion of major instruments of real estate financing, the mortgage market and key financial institutions, governmental involvement in mortgage markets, credit analysis, the methodologies for appraising residential properties, and other relevant topics. The course will emphasize the use of creative financing tools and their payment patterns by analyzing detailed examples. An analysis of factors which determine the investment returns and value of real estate versus alternatives. The course introduces methodologies for appraising income-producing properties.
Decision making from the perspective of institutional, as well as individual investors, is examined.
Estimation of risk and return is explored in an individual property and portfolio context. Case studies relating to long term financing requirements, operating and financial leverage, dividend policy, cash budgeting, risk, working capital management, capital budgeting, cost of capital, management of earnings, valuation of the firm, and mergers and acquisitions. A study of the theory and practice of capital budgeting in the global arena. Topics include capital budgeting techniques, and decisions involving replacement, make or buy, plant location, risk and uncertainty, lease evaluation, bond refunding, project abandonment, inflation, mergers and acquisitions, cost of capital, capital structure decisions, executive compensation, dividend policy and valuation. It is an opportunity for independent study, field research, or other special assignments.