1. Congratulations! You have been hired as an Equity Research Analysts for one of the leading investment banks. Your boss asked you to analyze a REIT company that she heard might be a good investment opportunity. The properties underlying the REIT generate and NOI of $9.5 million (See income statement below) and the implied capitalization rate (caprate) for all assets is 5.5%. The growth in the market is 2.5% and the required return for the REIT stock is 8%. Your analysis shows that the current FFO multiple for other REITs of similar characteristics is 14.5. Assume that the all earnings are paid as dividend and that the REIT has $29 million in Debt.

   Num Shares	1,500,000
   	REIT Income Statement
   Rent	$19,000,000
   - Operating Expenses	($9,500,000)
   Net Operating Income	$9,500,000
   - Depreciation	($2,500,000)
   +Gains on Sale of Property	$3,000,000
   Net Income	$10,000,000

   What is the price of the REIT stock using the Gordon Dividend Discount Model?

   		$36.44
   		$91.83
   		$124.24
   		$95.82