6. Wilson Development Co. is constructing a 282,000 sq. ft. shopping center with the following data, land cost of $5 million, hard, and soft costs of $90/sq. ft., EGI of $15/sq. ft. and operating expenses of $8.40/sq. ft. The stabilized return on cost is?

A. 5.9% B. 6.13% C. 13.6% D. 7.5%

7. The formula for the discount rate used in CRE analysis is which of the following:

A. The risk-free rate plus a risk premium

B. The inflation rate plus a real rate less a default premium

C. The risk-free rate plus a risk premium less a growth rate

D. The growth rate plus a risk premium less an inflation rate