A) Given the Following Information, Calculate the Net Tangible Asset

question 12

Essay

a) Given the following information, calculate the net tangible asset (NTA) price per unit of the "Futuristic Office Property Fund" which is an A-REIT.
Market value of property held by the fund is $80,000,000; the mortgage owed to lenders is $50,000,000; and the number of units issued to the public is 20,000,000.
b) The market price of the fund is currently trading at a discount of 10% to the answer derived in part a) of this question. Calculate this market price and discuss why a price different to the NTA may occur for an A-REIT.

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Definitions:

Borrower

An individual or entity that receives something with the agreement to return it or its equivalent to the lender at a later date.

Sales Taxes

Taxes levied by government on the sale of goods and services, typically calculated as a percentage of the sale price.

Sales Revenues

The revenue a company earns from selling products or offering services.

Sales Tax Rate

The percentage at which sales tax is levied on the sale of goods and services, varying by jurisdiction and the type of product or service.