The NTA of an Unlisted Property Trust Assuming All Other

question 3

Multiple Choice

The NTA of an unlisted property trust assuming all other items are held constant:

• A) will increase in situations where the fund manager decides to repay principal on outstanding debt from surplus cash holdings.
• B) will increase in situations where the fund manager decides to revalue upwards the amount included in the balance sheet for goodwill attached to a prominent property held by the fund.
• C) is used by fund managers to determine the current value of units in the trust before adjusting for any management fees.
• D) both a and c

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Definitions:

Marginal Expenditure

The added financial outlay involved in purchasing one more unit of a product or service.

Monopsony Wage Rate

The wage rate determined in a market where there is only one buyer of labor, giving this buyer significant power over the wage rate.

Economic Rents

Extra earnings above the minimum level required to keep a resource in its current use, often associated with scarce resources or monopolistic markets.

Non-Union Workers

Employees who are not members of a labor union and typically do not receive the collective bargaining benefits that unionized workers do.