Characteristics of an A-REIT Include

question 15

Multiple Choice

Characteristics of an A-REIT include:

• A) units being issued to investors on establishment.
• B) prices fluctuating in accordance with general market sentiment on the ASX.
• C) investors receiving distributions in the form of fully-franked dividends.
• D) both a and b

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Definitions:

Reinvestment

The process of using dividends, interest, or any other form of income generated by an investment to purchase additional shares or units of that investment.

IRR Method

The process of estimating the rate of return on an investment by setting the net present value of all cash flows to zero, to assess its profitability.

MIRR

Modified Internal Rate of Return, a financial measure used to assess the attractiveness of investments by accounting for the cost of borrowing and reinvestment rates.

Cash Flows

The aggregate sum of money entering and exiting a business, notably affecting its cash flow.