Question

QUESTION 5 When a REIT stock is trading for less than its liquidation value, the stock is said to be trading a discount to NA

0 0
Add a comment Improve this question Transcribed image text
Answer #1

True.

If the REIT is trading below its liquidation value, it is highly likely that the NAV which is the net asset value is higher than the liquidation value and the statement is correct.

Add a comment
Know the answer?
Add Answer to:
QUESTION 5 When a REIT stock is trading for less than its liquidation value, the stock...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • QUESTION 23 When a bond's coupon rate is less than its yield-to-maturity the bond will be...

    QUESTION 23 When a bond's coupon rate is less than its yield-to-maturity the bond will be a discount bond. True False QUESTION 24 Exposure to non-systematic risk is rewarded with higher expected return. Conversely, exposure to systematic risk is not rewarded with higher expected returns True False QUESTION 25 You invest the same dollar amount in 5 different securities. All else equal, diversification produces the greatest benefits if the correlation coefficients for the returns of the 5 securities are close...

  • In a nontaxable distribution of stock​ rights, when the value of the rights is less than​...

    In a nontaxable distribution of stock​ rights, when the value of the rights is less than​ 15% of the value of the stock with respect to which the rights were​ distributed, the basis of the rights is zero unless the shareholder elects to allocate stock basis to the rights. True False

  • 1-If the fair value of a stock is greater than its market value, it means that:...

    1-If the fair value of a stock is greater than its market value, it means that: A. The stock has a low level of risk B. The stock offers a high dividend C. The market is undervaluing the stock. D. The market is overvaluing the stock 2-A profitability index of .85 for a project means that: A-The present value of benefits is 85% greater than the project's costs. B. The project's NPV is greater than zero. C. The project returns...

  • The financial markets like predictability of cash flows. Hotels have the shortest leases of all major...

    The financial markets like predictability of cash flows. Hotels have the shortest leases of all major property types and the leases can be as short as one day. This is why hotels are often thought of as operating businesses. Office leases, by contrast, are longer term and and it is not uncommon to find office leases with 10-year terms or longer. As a result, cap rates for hotels are generally higher than cap rates for office buildings? True False 5...

  • 5) Before it matures, the price of any bond is always less than its face value....

    5) Before it matures, the price of any bond is always less than its face value. A) True B) False

  • I need detailed long answer, more than 1 page, with references. True/ False - The liquidation...

    I need detailed long answer, more than 1 page, with references. True/ False - The liquidation value of a company's shares always places a floor under its stock price

  • 1-If the Fair Value Adjustment minus Trading account for trading debt investments has a debit balance,...

    1-If the Fair Value Adjustment minus Trading account for trading debt investments has a debit balance, it is 2-A preferred stock is an example of a debt security. • True False 3-Equity securities, in which the investor lacks the ability to participate in the decisions of the investee company, are initially accounted for at the lower-of-cost-or-market value. True . False 4- are equity securities in which the investor owns between 20% and 50% of the investee's voting stock. 5-Securities are...

  • You estimated the present value of CAKE to be $85 per share. CAKE is currently trading...

    You estimated the present value of CAKE to be $85 per share. CAKE is currently trading at $80 per share. Currently CAKE is undervalued. True False Question 5 (6.1 points) Dividends are the best way to value a firm because all firms pay dividends. True False Question 6 (6.1 points) Free cash flow is a reliable way to calculate firm value because every firm has free cash flow, even if it is a negative free cash flow. True False Question...

  • Question text A budget deficit occurs when government receipts are less than spending and a budget...

    Question text A budget deficit occurs when government receipts are less than spending and a budget surplus occurs when government spending is less than receipts. Select one: True False Question 29 Not yet answered Marked out of 0.4 An advantage of a consumption tax over the present income tax system is that a consumption tax discourages consumption and encourages saving. Select one: True False Question 30 One of the largest categories of U.S. federal government spending is Social Security and...

  • Question 1 Trading investments include ob equity securities in which the investor holds less than 20...

    Question 1 Trading investments include ob equity securities in which the investor holds less than 20 percent of the voting stock and that the investor plans to sell in the very near future debt and equity securities that the investor expects to hold longer than one year or debt or equity securities that are not readily marketable investments in debt securities that the investor intends to hold until they mature investments in debt and equity securities that are highly liquid...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT