CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

The net operating income (NOI) figure for valuing an income property is calculated by subtracting which of the following from the property's gross potential rental income?

I. interest on debt financing.
II. income taxes.
III. property taxes.
Correct Answer: III

User Contributed Comments 4

User Comment
danlan NOI means EBIT
Nightsurfer And the "T" in EBIT means "income taxes" not property taxes. property taxes have to be subtracted from gross income to get NOI which includes income taxes.
jerylewis Rather EBITDA
jimmyvo NOI = EBITA
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