Question
A REIT with 100,000 shares outstanding earns $1,000,000 in revenues from rent and incurs operating expenses of $400,000. In addition, the REIT owns property purchased
A REIT with 100,000 shares outstanding earns $1,000,000 in revenues from rent and incurs operating expenses of $400,000. In addition, the REIT owns property purchased for $7,000,000 and depreciates it over a 27 year useful life period, using straight-line depreciation.
What is the minimum dividend payment the REIT must make to maintain its tax exempt status?
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ISE Real Estate Finance And Investments
Authors: Jeffrey Fisher William B. Brueggeman
17th International Edition
1264892888, 9781264892884
