Real estate investment trust

Assignment Help Financial Management
Reference no: EM131338656

A Real Estate Investment Trust (REIT): 1.may specialize in loans to finance real estate. 2.for an investor, may be considered a more passive investment than owning a rental house. 3.are a type of closed-end investment company. 4.generally have as much marketability as common stocks. Select one: a. 1 and 2 b. 3 and 4 c. 2 and 3 d. all of the answers are correct

Reference no: EM131338656

Questions Cloud

Bond pays interest semi-annually : If a bond pays interest semi-annually
What is the holding period return an investor : Use the information presented in question 44. If the price of the bond rises to $1240 at the end of three years and the stock rises to $80, what is the holding period return an investor would earn on the stock and on the bond?
Today globalized economy : In particular, what countries would you consider success stories in today's globalized economy? What are other countries doing to address work-family dilemmas and social inequalities related to race, class, and gender?
If an investor sells stock short : If an investor sells a stock short, that individual reduces the risk of loss by:
Real estate investment trust : A Real Estate Investment Trust (REIT): 1.may specialize in loans to finance real estate. 2.for an investor, may be considered a more passive investment than owning a rental house. 3.are a type of closed-end investment company. 4.generally have as muc..
Most investors discourage the distribution of dividends : The following are true about taxation on stocks: 1.Earnings by REITS are taxed at both the corporate level and at the taxpayer level. 2.Short-term capital gains and all dividends are always taxed at the same rate. 3.Increases in the market value of a..
The maturity risk premium is estimated : The real risk-free rate is 2.7%. Inflation is expected to be 2.15% this year, 3.65% next year, and then 2.1% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year T..
What are the four sources of long-term debt financing : Does adding debt increase or decrease the flexibility of a healthcare provider? Why? What are the four sources of long-term debt financing?
Debt security is a claim on a mortgage pool : A debt security is a claim on a mortgage pool (e.g., a Ginnie Mae pass-through security)with a face value of $100,000. The mortgages pay 9 percent and have an expected life of 20 years. Currently, interest rates are 9 percent. If you purchase the sec..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of the equity after the restructuring

A firm has an expected perpetual EBIT = $6,000. The unlevered cost of capital = 8% and there are 20,000 shares of stock outstanding. The firm is considering issuing $10,000 in new par bonds to add financial leverage to the firm. What is the value of ..

  Budgets are the responsibility of everyone

At Lakeside Manufacturing, budgets are the responsibility of everyone. Each department collaborates in determining its expected needs, and sales personnel determine the likely sales volume. As the accounting manager, write a memo to Mr. Talbott, expl..

  The elasticity of demand for product depends upon

The elasticity of demand for a product depends upon the ?

  List at least five human capital management problems at agc

List at least five human capital management problems at AGC. Leadership styles and their impact on organizational cultures. How will you measure the effectiveness of the plan?

  Cash-accounts receivable and inventory

Consider the Current Asset accounts (Cash, Accounts Receivable and Inventory) indivuidally and as a group. What impact will the following transaction have on each account AND current asset in total?  Don't concern yourself with any changes to the lia..

  Shares of common stock outstanding at a price per share

Western United has 154,000 shares of common stock outstanding at a price per share of 38.50. There are 15,000 shares of preferred stock outstanding at a price of 69/share. The firm also holds 3600 bonds outstanding that are currently selling at par. ..

  Net advantage to leasing the firm will lease the equipment

Buster’s Beverages is negotiating a lease on a new piece of equipment that would cost $100,000 if purchased. The equipment falls into the MACRS 3-year class, and it would be used for 3 years and then sold, because the firm plans to move to a new faci..

  Purchase significant amounts of stock in the companies

If commercial banks were allowed to purchase significant amounts of stock in the companies to which they make loans, would this increase or decrease the extent of moral hazard in the financial system? Briefly explain.

  New sausage system with an installed cost

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $538,000. This cost will be depreciated straight-line to zero over the project’s four-year life, at the end of which the sausage system can be scrapped for $114,000. If the..

  Transactions occurred in the primary market

Which one of the following transactions occurred in the primary market?

  Comparing two mutually exclusive projects

You are comparing two mutually exclusive projects. Both projects have an initial cost of $49,000 . Project A has cash inflows of $30,000 , $27,000 , and $24,000 over the next 3 years, respectively. Project B has cash inflows of $19,000 , $24,600 and ..

  Trying to determine its cost of debt

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. Wha..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd