Please answer the following multiple choice question(s):

15. Which of the following are true regarding Equity REiTs a. b. Often lack diversication of different property segments and geographies Have greater challenges for sustained growth due to the more limited retained earnings and 8: potential for reinvestment of capital compared to non REITs; Generally pay a steady yield on dividends having a positive spread to U.S. Treasury bonds ma king them a favorable investment choice for conservative income investors seeking a combination of both income yield and capital appreciation for their investments They have a favorable exemption from paying corporate federal income taxes on REIT qualified income Leverage borrowing is less attractive to Equity RElTs than most other corporate S&P companies given the lack of tax deductability of interest expense Just A,C, 8; D are true All of the above (a through e) are true 18. Which one of the nancing proposals would you recommend selecting if you were the advisor. Hospitality Investors acquired a Hotel resort which the new owners (sponsor) are planning substantial capital improvements and an upgraded "Franchise Flag\" to create a "' Higher Quality Brand\". The expected duration of the capital investment and Brand Approval process are estimated to take 3 years; but there is no assurance of that timeline and the process could slip slightly based on elements such as permits, variances, weather and other variables. The planned capital improvements would incorporate an upgrade in the level of service quality plus amenities which translates into nancial expectations that room rates and event revenues and cash ows would be substantially increased. Both RevPar increases from growth in the daily room rate and occupancy, and the renting out of improved ballroom spaces for social and corporate events should trigger these improvements, coupled with the better marketing of the new Brand. The hotel will remain \"in service" during this period but will need to periodically take rooms out of service during this staged capital improvement process. The improved cash flows and Flag upgrade could potentially increase the valuation by up to 80% of the current value once the capex is completed and the new Flag requirements are satised. The outlook for future interest rates are increasing steadily. a. A 7 year Fixed Rate CMBS Loan, at 55% of current valuation, with no renewal options, and a complete prepayment lockout excepting a provision for loan defeasance. b. A 2 year Floating Rate Loan, at 60% of current valuation, with an additional mezzanine loan tranche bringing the aggregate LTV to 90%, locked out for one year with no renewal options. Both loans are not capped and fully prepayable after 12 months- c. A 3 year Floating Rate Loan, at 60% of current valuation, with three one year renewal options subject to no default, freely prepayable after 9 months, with interest cap provisions throughout all the loan periods- cl. A 1 year Floating Rate Bridge Loan, at 65% of current valuation, with no renewal options, fully prepayable and not capped. e. A 10 year Fixed Rate Term Loan with a major Life Insurance Company, at 60% of current valuation, no renewal options, and no repayment provisions