Developing and Analyzing Sophisticated Financial Models
for single period or multiple years.
Overall Financial Leverage[ 1. Operating 2. Appreciation 3. Tax Shelter ]
Financial Model determines weather a financial leverage is positive or negative.
Positive Financial Leverage
ROE > ROI > K
Negative Financial Leverage
ROE < ROI < K
BFFM calculates an estimated maximum investment value that an investor would pay for a commercial real estate investment.
Financial Feasibility Model determines the maximum equity investment, maximum mortgage possible and maximum investment value.
After given a Required Rate of Return (RROR) on Equity, the Maximum Investment Value is estimated.