-A REIT Has an NOI of $15 as Share and

question 28

Multiple Choice

$$\begin{array} { l r } \text { Net revenue } & \$ 20,000,000 \\\text { Less: } & \\\text { Operating expenses } & 9,800,000 \\\text { Depreciation and } & \\\text { amartization } & \underline{4,400,000} \\\text { Incame fram aperations } & 5,800,000 \\\text { Less: } & \\\text { Interest expense } & \underline{1,280,000}\\\text { Net incame } &\$ \underline{4,520,000}\\\end{array}$$
-A REIT has an NOI of $15 as share and currently pays a dividend of $10 a share. The dividend is projected to increase by 4 percent by next year and continue to increase by 4 percent per year thereafter. Assuming that the blended cap rate is 9.75 percent and the required rate of return is 10.5 percent, what value would the Gordon Dividend Discount Model provide?

• A) $60.15
• B) $71.89
• C) $153.85
• D) $160.00
• E) $190.00

---

Definitions:

Hierarchy of Needs

A theory proposed by Abraham Maslow suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, which must be fulfilled in sequence.

Committed Relationship

A long-term, dedicated partnership between individuals, which can be romantic or platonic, characterized by mutual respect, love, and shared goals.

Homeostasis

The process through which living organisms maintain equilibrium while adapting to circumstances that are best for their continuation.

Self-transcendence

A psychological state or quality of going beyond personal needs and interests, often involving spiritual experiences or altruism.