The risk free interest rate is 150 basis points. The market is assigning a risk premium of 300 basis points to upscale

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The risk free interest rate is 150 basis points. The
market is assigning a risk premium of 300 basis points to upscale
garden-style apartment complexes located in high growth southern
United States cities. You own such an apartment complex that
produced cashflow last year for investor returns and debt payments
of $1.25 million. Your investors want to sell because they
believe cap rates will increase in the next year. What
selling price would you recommend for the property?
Question 12 options:
$27.8 million
$41.7 million
$83.3 million
$23.2 million
You own a 100,000 square foot retail center on a high traffic
intersection in a suburban market. Average rents in the
market are $15 per square foot. Total competitive space in
your competitive set encompasses 500,000 square feet. You
employ a very competent property management company to manage your
retail center allowing you to earn annual rent of $2.0
million. Calculate your fair share percentage of revenue
versus total market revenue.
Question 13 options:
Around 20%.
Around $1.5 million.
Around $2.0 million
Around 27%.