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Rates and Ratios: Making Sense of GIMs, OARs, and DCF Education Schedule (PDF)

Education Catalog (PDF)
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Students should check state approvals prior to registering for any Appraisal Institute program.

ClassroomOn-Demand Online EducationLive Online (Synchronous)

Do you understand how various rates and ratios used in the income capitalization approach relate to each other? Do you know what effect these relationships may have on your selection and interpretation of data from comparable sales?
This seminar will provide a conceptual framework for thinking about key relationships among models, ranging from gross income multipliers to discounted cash flow models. Up until now, little focus has been placed on how these models relate to each other. These relationships have important implications for how differences in these rates and multipliers are interpreted and, in turn, for selecting and using data from comparable sales.
Using a case study that follows logical progression from GIMs to DCF models, you’ll analyze specific relationships (i.e., between going-in verses going-out capitalization rates and between before-and after-tax rates). You will gain a comprehensive overview of the broad range of relationships among key multipliers and rates. There are case study exercises in this course which require fair amount of time to complete. Please note that the instructor may take 3 to 5 days grade your case study exercises so plan your time accordingly.

Course Introduction
Module 1: An Overview of Value Determination and Income Capitalization Approach Models
Module 2: The Band of Investment Model
Module 3: The Yield Capitalization Model
Module 4: Additional Rate Relationships
Module 5: How Debt Financing (Leverage) Affects Return Relationships

Learning Objectives:

    • Produce reports that are more consistent and defensible.
    • Understand differences in the levels of the various rates and ratios.
    • Recognize how relationships between rates affect your selection and interpretation of data from comparable sales.

AI CE Credit for Designated members and Practicing Affiliates
• Attend Only = 75 points

Please note that the course has mandatory assignments that the instructor will be reviewing and will release the certificate and/or exam authorization after a final review. This review can take up to 3-5 days. Expedited approval is available upon request.

General [Gen]

Required Technology

A Financial Calculator is required for this class.You must be familiar with calculator operation. Answers to problems in course material are shown using the HP-12C. Please do not expect to be taught how to use a financial calculator.

Recommended Text
None Specified.

AI Price: $ 115.00
Full Price: $ 137.00

Click Here for State Approvals

Kenneth M. Lusht, PhD, MAI, SRA

I agree to the terms and policies set forth under the Appraisal Institute Online Education Policy. I also certify that I am the person identified above under Personal Data and that I will personally complete each assigned module of instruction and any examination(s). I understand and agree that if I misrepresent my identity or arrange for someone else to represent himself or herself as me at any time during the Appraisal Institute online course or seminar, I will be immediately removed from the course or seminar and I will not be entitled to any refund. I further understand that if I am a member of the Appraisal Institute and participated in any misrepresentation of identity, by affirmative act or failure to act, that I will be the subject of a peer review proceeding under Regulation No. 6 for violation of the Appraisal Institute''s Code of Professional Ethics and Standard of Professional Appraisal Practice, and that such peer review proceeding may result in termination of my Appraisal Institute membership.

Additional Information
Please allow 1 hour after registration to start an online session in progress (on or after the session start date). Go to and log in with the username and password you used when you registered. You will automatically be taken to the "My Appraisal Institute" page. Near the middle of that page your course will be listed with a link next to it that says "Go To Class".

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