Question #20
Reading: Reading 33 Real Estate Investments
PDF File: Reading 33 Real Estate Investments.pdf
Page: 9
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
If a REIT has assets with a current market value of $3,000,000, liabilities with a current market value of $2,000,000, and 100,000 shares outstanding, what is the NAVPS per share?
Answer Choices:
A. $50.00
B. $30.00
C. $10.00
Explanation
NAVPS per share can be calculated by beginning with assets, subtracting liabilities, and
then dividing the result by the number by shares outstanding. Thus,
$3,000,000-$2,000,000 = $1,000,000 and $1,000,000/100,000 = $10.00 per share.