Quick Question on Alternative Investments (Private Real Estate)

CFA Level II Alternative Investments
#21

ans is B

#22

Q no 1 pg 122 explain plz

#23

Why is it B?

My calc was (115 NOI/.07 mkt cap rate)/100 shares outstanding.

Am I missing something?

#24

liabilities

#25

Ah, got it. Thanks.

#26

This comes straight from the relationship Value = NOI/cap .

Holding value constant you see that if we drop cap, NOI has to drop too (you can also see that from: cap = NOI/Value)

Since FFO moves with NOI, REIT B should have the greater FFO, so lower P/FFO

#27

Panos great man u seem to on top of AI

#28

I wish, I only have done one schweser exam and I’m freaking the £(*$&@ out