1. Suppose you expect that one year from now, a certain propertys before-tax cash flow (PBTCF =NOI - CI) will equal only $15,000 per year under a plausible pessimistic scenario or as much as $25,000 per year under a plausible optimistic scenario. If you borrow an amount such that the loan payments will be $10,000 per year (for certain), then what is your range of expected income return component (equity yield), assuming that the property price is $200,000 and the loan amount is $100,000?

2. Colonial Apartment REIT reports the following financial information on a per-share basis: GAAP Net Income [Earnings per Share (EPS)] = $4.00 GAAP Depreciation & Amortization=$3.00 Reserves for property capital expenditures=$0.80

Dividend paid=$4.50 Debt=$50, with an average interest rate on debt=7% AFFO yield of 6.9% based on current share price Estimated weighted average firm-level private property market cap rate of 8% What is the current share price premium (or discount) to NAV for the REIT?