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Assume that you have bought 5 0 0 shares of a REIT for $ 4 0 per share ( $ 2 0 , 0 0

Assume that you have bought 500 shares of a REIT for $40 per share ($20,000 initial investment). The REIT is paying a 5.8% annual dividend yield, which is expected to grow at 1.0% per year (5.858% next year, not 6.8%). You currently plan to hold the REIT for another 10 years until you retire. A.) If you decide to reinvest the quarterly dividend payment by repurchasing addition shares of the REIT (your REIT allows for dividend reinvestment), how much will your REIT investment be worth just from the dividend and its reinvestment? You are assuming no capital gains growth for this REIT. Record both the final dollar amount and the average annual percent gain/return. The Dividend Calculator website among other online sites, can help you with your analysis. B.) Rework Part A, but now assume you invest in the REIT for 20 years instead of just 10 years.
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