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If Properties in a Certain Market Are Typically Selling for Prices

Question 23

Multiple Choice

If properties in a certain market are typically selling for prices of $100/SF and they are yielding current annual net income of $8/SF, then the typical "cap rate" prevailing in this market is:


A) $12.50.
B) $8/SF.
C) 8%.
D) Cannot be estimated from the information given.

Correct Answer:

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