What follows is a series of questions related to the discussion we had in class concerning a REITs financial statements. For reference, please refer to the Excel file 2nd Quarter REIT Financial Statements, Tab FFO. Let's make the following assumptions about a simplified REIT income statement. (All of the numbers are in millions). 350 in revenues; 80 in operating expenses; 40 in depreciation; 100 shares outstanding; 12 in Cap Expenditures; 40% tax rate.

Assume that REITs are trading at an AFFO multiple of 12.75. What is the REIT's expected share price?

32.90

46.5

42.0

39.15