The REIT is facing a $300 million mortgage debt maturity in 2018, and could do either a senior notes offering at a 4.25% interest rate, or a perpetual preferred offering at a yield of 6.5%. What is the impact on the following credit ratio of each alternative? A Leverag B Fixed Charge coverage
The REIT is facing a $300 million mortgage debt maturity in 2018, and could do either a senior notes offering at a 4.25% interest rate, or a perpetual preferred offering at a yield of 6.5%. What is the impact on the following credit ratio of each alternative? A Leverag B Fixed Charge coverage
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The REIT is facing a $300 million mortgage debt maturity in 2018, and could do either a senior notes offering at a 4.25% interest rate, or a perpetual preferred offering at a yield of 6.5%. What is the impact on the following credit ratio of each alternative?
A Leverag
B Fixed Charge coverage
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