Question
ABC Realty Trust has an annual NOI of $110M. Net debt equals $700M. The company has 90M shares outstanding. Based on the trades for comparable
-
ABC Realty Trust has an annual NOI of $110M. Net debt equals $700M. The company has 90M shares outstanding. Based on the trades for comparable assets in its portfolio, the company believes that a fair cap rate for its assets is 8.5%. If the stock trades at $3.37/share, what is the discount or premium of the share price to Net Asset Value per share?
60%
50%
53%
51%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
7th Edition
0538877766, 9780538877763
