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Suppose that a REIT is expected to pay a $12.5 FFO per share next year. The long-term average of price/FFO ratio for the REIT is

Suppose that a REIT is expected to pay a $12.5 FFO per share next year. The long-term average of price/FFO ratio for the REIT is 9.5. What would be the estimated stock price per share for the REIT next year based on the FFO multiple valuation approach discussed in class?

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