1. REITs are required by the IRS to pay out annual dividends of 90% of their taxable income. If a REIT’s taxable income is $1.5 million, what will be the total payout of its annual dividends? 2. If...

1. REITs are required by the IRS to pay out annual dividends of 90% of their taxable income. If a REIT’s taxable income is $1.5 million, what will be the total payout of its annual dividends?

2. If you follow the recommendation that investments in  a REIT should not make up more than 10% of your investment portfolio, what is the maximum dollar amount you should have tied up in a REIT if the total assets of your portfolio equal $730,000?