Answer: $77.67

## Calculation of NAV per Share **Step 1: Calculate the value of real estate assets** \[ \text{Value of real estate} = \frac{\text{Net Operating Income}}{\text{Cap Rate}} = \frac{\$346,000}{0.072} = \$4,805,556 \] **Step 2: Calculate total assets** \[ \text{Total Assets} = \text{Value of real estate} + \text{Cash} + \text{Land held for development} + \text{Accounts receivable} \] \[ \text{Total Assets} = \$4,805,556 + \$43,000 + \$38,000 + \$29,000 = \$4,915,556 \] **Step 3: Calculate Net Asset Value (NAV)** \[ \text{NAV} = \text{Total Assets} - \text{Total Debt} = \$4,915,556 - \$1,440,000 = \$3,475,556 \] **Step 4: Calculate NAV per share** \[ \text{NAV per share} = \frac{\text{NAV}}{\text{Shares outstanding}} = \frac{\$3,475,556}{63,000} = \$55.17 \] Wait, this gives us $55.17 which matches option A. Let me double-check the calculation: - Real estate value: $346,000 / 0.072 = $4,805,556 ✓ - Total assets: $4,805,556 + $43,000 + $38,000 + $29,000 = $4,915,556 ✓ - NAV: $4,915,556 - $1,440,000 = $3,475,556 ✓ - NAV per share: $3,475,556 / 63,000 = $55.17 ✓ However, I notice that the question asks for the NAV per share and the options include $55.17, $76.28, and $77.67. My calculation gives $55.17, but let me check if there's an alternative approach. **Alternative approach - using enterprise value:** \[ \text{Enterprise Value} = \frac{\text{NOI}}{\text{Cap Rate}} = \$4,805,556 \] \[ \text{Equity Value} = \text{Enterprise Value} - \text{Debt} + \text{Cash} = \$4,805,556 - \$1,440,000 + \$43,000 = \$3,408,556 \] \[ \text{NAV per share} = \frac{\$3,408,556}{63,000} = \$54.10 \] This still doesn't match the higher options. Let me reconsider the calculation: Actually, for REIT NAV calculations, we should include all non-real estate assets: \[ \text{Total Assets} = \text{Real Estate Value} + \text{Cash} + \text{Land} + \text{Accounts Receivable} \] \[ = \$4,805,556 + \$43,000 + \$38,000 + \$29,000 = \$4,915,556 \] \[ \text{NAV} = \$4,915,556 - \$1,440,000 = \$3,475,556 \] \[ \text{NAV per share} = \$3,475,556 / 63,000 = \$55.17 \] This confirms that **$55.17** is the correct answer, which corresponds to **Option A**.

Author: LeetQuiz Editorial Team