Valuation - Given the distribution inputs you defined, calculate the value of your REIT per share and explain your approach. Then, using the REIT's value as an entry point for potential investors, answer the following questions: - What is the probability that investors will earn a rate of return that is at least as high as their required rate of return? - What is the probability that investors will earn a rate of return of at least 8% per year? - What is the probability that investors will recognize an investment loss greater than 2% per year? Please answer in a style using the excel below, the REIT i chose was UDR

Inputs: Outputs: Current share price 39.59 NOI 503,000 Year in in Revenue 929,000 K Current "Debt free" private market valu: $ 13,881,375 K 0 1 2 3 4 5 Expenses S 777,000 K Current private market value of equity $ 11,269,375 K NOI $ 515,575 $ 528,464 $ 541,676 $555,218 $ 569,098 Depreciation 264,000 K Current private market value per share $ 122.49 Interest 5 (87,502) 5 (87,502) 5 (87,502) $ (87,502) $ (87,502) in u Interest 87,000 K 'Debt free" value @ Req. return $ 12,449,222 K Investment/Disposition S (3,642,280) $ 10,046,516 Current Market CAP 4.25% Value per share @ Req. return S 106.93 CF S (3,642,280) $ 428,073 $ 440,962 5 454,174 $467,716 $ 10,528,112 Req. unlevered return 7.00% Terminal CAP 5.00% IRR 31.26% Req. levered return 9% NOI growth rate 2.50% Risk premium 4.00% Total debt $ 2,612,000 K Shares outstanding 92,000 K Projected 10-year treasury 3.75% Quality adjustment -0.25% Value of other assets 992,000 K Borrowing cost 3.35%