Question
1.According to NAREIT, REIT stocks correlation with the S&P 500 during the period from 1980 through 2010 was 0.55. If the S&P 500 gained 10%
1.According to NAREIT, REIT stocks correlation with the S&P 500 during the period from 1980 through 2010 was 0.55. If the S&P 500 gained 10% during this period, what is the expected gain in REIT stocks?
1. | 5.5% | |
2. | 5.0% | |
3. | 4.5% | |
4. | 10% |
2.
By law, REITs are required to distribute 90% of their pretax income to shareholders. REITs are not taxable but shareholders are. If a REIT pays out a dividend of $1,000 and the shareholder has a tax rate of 40%, what is the after tax return to the shareholder?
1. | $400 | |
2. | $600 | |
3. | $1,000 | |
4. | $950 |
3.
REITs are required to have at least what % of its assets invested in real estate, mortgage loans and shares in other REITs?
1. | 70% | |
2. | 75% | |
3. | 80% | |
4. | 90% |
4.REITs are required to derive at least what % of gross income from rents, mortgage interest, or gains from the sale of property?
1. | 65% | |
2. | 75% | |
3. | 95% | |
4. | 100% |
5.If the value of a property is $10M, and the NOI is $450K, what is the implied cap rate?
1. | 3.5% | |
2. | 4.0% | |
3. | 4.5% | |
4. | 5.0% |
6.If a property has an NOI of $600K, and a comparable property traded at a 5% cap rate, what is a reasonable estimate of the property's value?
-
1. $12M
2. $10M
3. $8M
4. $14M
7.The REIT Modernization Act enabled REITs to own a taxable subsidiary. This enabled the REIT's to engage in what for-profit activities?
1. | Merchant property development | |
2. | Fee brokerage | |
3. | Telecom and broadband | |
4. | All of the above. |
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