1(a). What is the Net Income Multiplier for in each of the markets below? Show your work and round to the nearest $0.01.

Market A: 5.25% Capitalization Rate

Market B: 8.00% Capitalization Rate

Market C: 13.00% Capitalization Rate

1(b). Briefly explain the significance of the Net Income Multiplier. What does it tell an investor about the market as a whole? What can it tell an investor about a specific investment opportunity?

1(c). All other things being equal, as the market capitalization rate increases what happens to the value of an income producing property? Briefly explain your reasoning.