Homework Answers
Equity Value = Shares Outstanding * NAV/Share = 90 million * $3.37 = $303.30 million
Current Market Value of Asset = Equity Value + Net Debt
= $303.30 million + $700 million = $1,003.30 million
Cap rate = NOI / Current Market Value of Assets
0.085 = NOI / $1,003.30 million
NOI = 0.085 * $1,003.30 million = $85.2805 million, or $85.3 million
Hence, 3rd Option is correct.
Add Answer to:
QUESTION 18 Assume a REIT has net debt of $700M, and goM shares outstanding. Both the stock price and NAV/share = to $3...
QUESTION 6 Assume a REIT has an annual NOI of $10OM. Net debt equals $700M. The...
QUESTION 6 Assume a REIT has an annual NOI of $10OM. Net debt equals $700M. The company has 90M shares outstanding, If the stock trades at $6 per share, and the stock price is equal to the value of NAV per share, what is the implied cap rate? 8.07% 8.0% 8.7% 7.5%
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...
Hero Manufacturing has 9.2 million shares of common stock outstanding. The current share price is $70,...
Hero Manufacturing has 9.2 million shares of common stock outstanding. The current share price is $70, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million and a coupon rate of 6.6 percent and sells for 109.9 percent of par. The second issue has a face value of $67.8 million and a coupon rate of 8.5 percent and sells for 113.7 percent of...
Glope Manufacturing has 9,161,454 shares of common stock outstanding. The current share price is $39.51, and...
Glope Manufacturing has 9,161,454 shares of common stock outstanding. The current share price is $39.51, and the book value per share is $3.95. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $44,225,980, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $46,764,468, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....
Filer Manufacturing has 8757596 shares of common stock outstanding. The current share price is $56.37, and...
Filer Manufacturing has 8757596 shares of common stock outstanding. The current share price is $56.37, and the book value per share is $9.59. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $49755532, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $52381094, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....
Filer Manufacturing has 8,965,201 shares of common stock outstanding. The current share price is $27.09, and...
Filer Manufacturing has 8,965,201 shares of common stock outstanding. The current share price is $27.09, and the book value per share is $3.78. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $73,031,874, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $77,711,671, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....
Filer Manufacturing has 4,294,390 shares of common stock outstanding. The current share price is $59.03, and...
Filer Manufacturing has 4,294,390 shares of common stock outstanding. The current share price is $59.03, and the book value per share is $5.34. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $55,657,525, has a 0.08 coupon, matures in 13 years and sells for 98 percent of par. The second issue has a face value of $60,631,873, has a 0.08 coupon, matures in 15 years, and sells for 97 percent of par....
Bona Manufacturing has 9,670,770 shares of common stock outstanding. The current share price is $53.94, and...
Bona Manufacturing has 9,670,770 shares of common stock outstanding. The current share price is $53.94, and the book value per share is $8.52. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $49,562,116, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $74,334,734, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....
Filer Manufacturing has 9,751,658 shares of common stock outstanding. The current share price is $56.8, and...
Filer Manufacturing has 9,751,658 shares of common stock outstanding. The current share price is $56.8, and the book value per share is $4.59. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $61,319,037, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $65,866,091, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....
Filer Manufacturing has 9,112,357 shares of common stock outstanding. The current share price is $35.38, and...
Filer Manufacturing has 9,112,357 shares of common stock outstanding. The current share price is $35.38, and the book value per share is $9.99. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $42,149,174, has a 0.09 coupon, matures in 17 years and sells for 97 percent of par. The second issue has a face value of $65,868,987, has a 0.05 coupon, matures in 13 years, and sells for 97 percent of par....
QUESTION 6 Assume a REIT has an annual NOI of $10OM. Net debt equals $700M. The company has 90M shares outstanding, If the stock trades at $6 per share, and the stock price is equal to the value of NAV per share, what is the implied cap rate? 8.07% 8.0% 8.7% 7.5%
Most questions answered within 3 hours.
-
(CO 2) A field can be added to a report to
values for two or more...
asked 8 minutes ago -
Identify 3 research scenarios that might provide a low,
medium, and high degree of variability in...
asked 31 minutes ago -
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 1 hour ago -
Two small plastic spheres are given positive electrical charges.
When they are a distance of 15.4...
asked 1 hour ago -
An acidic solution containing gold ions is
electrolyzed, producing gaseous oxygen (from water) at the anode...
asked 1 hour ago -
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 2 hours ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 2 hours ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 3 hours ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 4 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 3 hours ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 4 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 4 hours ago