A REIT Has an NOI of $15 Per Share and Currently

question 25

Multiple Choice

A REIT has an NOI of $15 per share and currently pays a dividend of $10 per 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

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Definitions:

Internal Support

The assistance and resources provided by an organization to its members or employees to ensure successful performance and satisfaction.

SWOT Analysis

A strategic planning tool used to identify and analyze the Strengths, Weaknesses, Opportunities, and Threats related to a project or business venture.

Brand Logic

The rationale and strategic thinking behind a brand's creation, positioning, and market approach.

Non-marketing Benefits

Advantages or positive outcomes that accrue from a product, service, or activity not directly related to marketing efforts, such as customer loyalty or employee satisfaction.