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Net Revenue $20,000,000 Less: Operating Expenses $9,800,000 Depreciation & Amoritization $4,400,000 Income from operations $5,800,000 Less: Interest Expense $1,280,000 Net Income $4,520,000 Consider the financial
| Net Revenue | $20,000,000 |
| Less: | |
| Operating Expenses | $9,800,000 |
| Depreciation & Amoritization | $4,400,000 |
| Income from operations | $5,800,000 |
| Less: | |
| Interest Expense | $1,280,000 |
| Net Income | $4,520,000 |
- Consider the financial statements for a REIT, given above. Price multiples for comparable REITs are about 10 times current funds from operation (FFO). What price does this suggest for the REIT's shares if 1,000,000 shares are issued? Please Show Work (NO EXCEL).
- Using the information from the question above, what would the net asset value (NAV) of the REIT be? Please Show Work (NO EXCEL).
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