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QUESTION 6 Assume a REIT has an annual NOI of $10OM. Net debt equals $700M. The company has 90M shares outstanding, If the st

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Answer #1

The implied cap rate is computed as follows:

= NOI / (Net debt + 90M x $ 6)

= $ 100 M / ($ 700M + $ 540M)

= 8.07% Approximately

So the correct answer is option of 8.07%

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