The Best Definition of REIT Is

question 57

Multiple Choice

The best definition of REIT is:

• A) A company that owns or finances income-producing real estate.
• B) Financial markets where long-term debt and equity securities are bought and sold.
• C) Financial markets where foreign currency is exchanged for real estate.
• D) Financial markets where short-term debt securities are bought and sold.
• E) Financial markets where long-term debt securities are bought and sold.

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Definitions:

Operating Cash Flows

Cash generated from a company's regular business operations, excluding financing or investment-related cash flow.

Net Income

Net Income is the total earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue.

After-tax Salvage Value

The value of a depreciated asset after deducting any taxes owed on the sale of the asset.

Incremental Operating Cash Flow

The additional amount of cash flow a company generates from its operating activities due to a specific decision or project.