Question: Valuation Given the distribution inputs you defined, calculate the value of your REIT per share and explain your approach. Then, using the REITs value as
Valuation Given the distribution inputs you defined, calculate the value of your REIT per
share and explain your approach. Then, using the REITs 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?
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