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Cromwell Properties Inc., a real estate investment trust (REIT), is in the process of an extended liquidation. It plans to pa
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Answer #1

Current price = Present value of future cash flows

Current price = Annuity * [1 - 1 / (1 + r)n] / r

Current price = 7.5 * [1 - 1 / (1 + 0.095)14] / 0.095

Current price = 7.5 * [1 - 0.280674] / 0.095

Current price = 7.5 * 7.571852

Current price = $56.79

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