Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

48 Drew bought a rental property for $151,000. He only now just found out about the concept of a cap rate. The property has revenue

image text in transcribed
48 Drew bought a rental property for $151,000. He only now just found out about the concept of a cap rate. The property has revenue of $18,000 a year and net operating expenses of $4,000 each year. Which of the following is the cap rate of this property? A) 11.92% B) 9.27% C) 6.27% D) 2.65%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to Investment Banks, Hedge Funds, and Private Equity

Authors: David P. Stowell

1st edition

978-0123745033, 0123745039, 978-9380931074

More Books

Students also viewed these Finance questions

Question

Define ISI.

Answered: 1 week ago

Question

Describe the Indian public distribution system.

Answered: 1 week ago

Question

Write a note on AGMARK.

Answered: 1 week ago

Question

Plan merit and demerits ?

Answered: 1 week ago