Given the following information, calculate the price-FFO multiple for the following REIT. Funds from Operation: $4,000,000; Stock Price: $40; Shares Outstanding: 1,000,000

Question

Quizplus · Accepted Answer

The price-FFO multiple is calculated by dividing the market capitalization by the funds from operation. Market capitalization is the stock price multiplied by the shares outstanding, which is $40 * 1,000,000 = $40,000,000. The price-FFO multiple is $40,000,000 / $4,000,000 = 10.00.

Given the Following Information, Calculate the Price-FFO Multiple for the Following