Question

The going-in cap rate, or overall capitalization rate, is a measure of the relationship between a property's current income stream and its price or value. Which of the following statements regarding cap rates is true?
A. It is a measure of total return since it accounts for future cash flows from operations and expected appreciation (depreciation) in the market value of the property.
B. It is a discount rate that can be applied to future cash flows.
C. It is analogous to the dividend yield on a common stock.
D. It is the projected rate at which prices will appreciate in the future

Answer

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