Net operating income and equity before-tax cash flow

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Reference no: EM131359621

1. The difference between the net operating income (NOI) and the equity before-tax cash flow (EBTCF) is:

Property Tax Expense and capital expenditures.

The debt service and capital expenditures.

Property taxes and income taxes.

Interest expense and depreciation expense.

2. A REIT has expected total return on equity of 15%, interest on their debt is 9%, and their debt-to-total-value ratio is 50%. What is the REIT’s average cost of capital?

12.0%

13.4%

12.6%

12.3%

Reference no: EM131359621

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