1. By law, REITs are required to distribute 90% of their pretax income to shareholders. REITs are not taxable but shareholders are. If a REIT pays out a dividend of $500, and the shareholder has a combined federal and state tax rate of 40%, what share of the dividend does the investor have to pay out in taxes?
   1. $200
   2. $300
   3. $500
   4. None
2. Assume a REIT has Funds from Operations of $150M. The REIT has 90M shares outstanding. The historic FFO multiple for the REIT is 14.2. What is an estimate of the REITs stock price based on its FFO multiple?
   1. 23.67
   2. 67.23
   3. 32.50
   4. 71.5