11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Gallagher & Mohan - Prior Interview Test

Total points 42/49

Congratulations! We would like you to take the next step in our interview process and take
our initial interview screening examination. This covers basic real estate finance
terminology. It is a timed test. After your completion, depending on the results, we will
schedule an interview to discuss the test and more on your background

Email *

[email protected]

First Name *

varun

Last Name *

soni

Age *

23

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Gender *

Male

Female

Prefer not to say

LinkedIn Profile Link *

https://www.linkedin.com/in/varunsoni09/

Position Applying For? *

Financial Analyst

From where you heard about us? (LinkedIn, institute’s or any placement *
agencies)

LinkedIn

If Depreciation is increased by $10 and tax rate in economy is 40%. *5/5

What is the key effect on Profit/Loss Statement?

Net Profit decreased by $10

Net Profit increased by $10

Net Profit decreased by $6

No Effect

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Investment 1 pays 20% interest compounded annually, Investment 2 *5/5

pays 19.5% compounded every 6 months and Investment 3 pays
19% with quarterly compounding. Which investment offers the
highest returns?

Investment 1

Investment 2

Investment 3

Investment 1, 2 and 3 offer the same returns.

(0.3)² ? * 1/1

0.9

0.09

0.009

Detroit Industries would be paying the next dividend at $4 per *5/5

share. Investors are asking for a 16% return from peers of the
company. The dividend increases annually by 6%. What is the
assumed value of the stock today based on available information?

$40

$42.4

$46.4

$44

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

If cost of Capital is less than IRR of the project? * 1/1

NPV is Positive

NPV is Negative

NPV is zero

None of these

An Analyst who is interested in a company’s long-term solvency *1/1

would most likely examine the

Return on total capital.

Defensive interval ratio.

Fixed charge coverage ratio.

What is the most accurate rate of Compound? * 1/1

Rule of 72

Rule of 70

Rule of 69

Rule of 71

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Which of the following equations least accurately represents return *1/1

on equity?

(net profit margin) (equity turnover)

(net profit margin) (total asset turnover) (assets/equity)

(ROA) (interest burden) (Tax retention Rate)

What defines (symbolize) Abnormal Return & Risk? * 0/1

α, β

β, α

σ, β

σ, α

Correct answer

α, β

A decrease in assets would lease likely be consistent with? * 1/1

Increase in expenses.

Decrease in revenues.

Increase in contributed capital.

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Increase in working capital will affect free cashflow to the firm in *1/1
which way?

Increase

Decrease

No Effect

Cannot be determined

Which of the following statements about NPV and IRR is least *1/1
accurate?

The IRR can be positive even if the NPV is negative.

When the IRR is equal to the cost of capital, the NPV will be zero.

The NPV will be positive if the IRR is less than the cost of capital.

Who should get the promote in the Private Equity Structure? * 1/1

LP

GP

None of the Above

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Portfolio Diversification is least likely to protect against losses. * 1/1

During Severe Market Turmoil

When markets are operating normally

When the portfolio securities have low return correlation

Formula of DSCR? * 1/1

Interest/EBIT

Interest/ Net Profit

Principal/ EBIT

(Principal + Interest)/ EBIT

Real estate markets differ from other asset classes by having all the *1/1
following characteristics except:

Local market.

High transaction costs.

Segmented market.

Homogeneous product.

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Ceteris Paribus, if there is rise in interest rate. What effect does it *1/1
have in valuation of income generating assets?

Increase in value

Decrease in value

No Effect

None of the Above

Property taxes are a major source of revenue for: * 1/1

The federal government.

School districts.

Local governments.

State governments.

Both local governments and school districts.

What is the Stock Price (as per GGM), if: * 5/5

Do = $500

G = 5%

Re = 10%

$100

$500

$10,000

$10,500

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Important supply factors affecting a city’s growth or growth *1/1

potential include all the following except the:

Unemployment rate.

Business leadership.

Presence of any industry economies of scale.

Labor force characteristics.

Education system.

What’s more Dangerous? * 0/1

Operating Leverage

Financial Leverage

Nothing is Dangerous

Both are Dangerous

Correct answer

Financial Leverage

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Features of an office building that may be important to one market *1/1

segment or another include:

Floor plate size.

Character and amount of parking.

Nature of other tenants.

Provision for electronics and communication systems.

All of the above.

Two properties have been sold twice within the last two years. *0/5
Property A sold 22 months ago for $100,500; it sold last week for
$115,200. Property B sold 20 months ago for $105,000; it sold
yesterday for $118,500. Assuming no compounding, what is the
average monthly rate of change in sale prices?

0.40%

4.20%

0.49%.

0.42%.

Correct answer

0.49%.

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11/04/2025, 15:32 Gallagher & Mohan - Prior Interview Test

Which of the following statements regarding capitalization rates on *1/1

commercial real estate investments is the most correct?

Cap rates vary inversely with the perceived risk of the investment.

Cap rates vary positively with the perceived risk of the investment.

Cap rates tend to decrease when yields on long-term Treasury securities increase.

Cap rates tend to increase when the expected growth rate in net rental income
increases.

If a landowner purchased a vacant lot six years ago for $93,450, *5/5
assuming no income or holding costs during the interim period,
what price would the landowner need to receive today to yield a 10
percent annual return on the land investment?

$40,262.75.

$111,132.72.

$165,552.34.

$194,843.56.

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