Question 5

In the RCP Case Study covered in this course, Frank and his partners have a decision to make. What is that decision?

a.Whether to invest in real estate b.Whether to accept the terms of the contract to purchase an office building c.Whether to "go live" and allow their contract position to continue, thereby risking their earnest money d.Whether to choose Loan A or Loan B

Question 7

For the next question: Assume 1,000,000 outstanding shares. (no book/tax differences amounts are actual; not thousands or millions):

Consider the financial statements for a publicly traded 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? Ch21

a.$ 32.00 per share b.$ 73.00 per share c.$ 10.00 per share d.$ 51.00 per share