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a) Based on the following information, use the weighted average method to calculate the capitalization rate: LTV Ratio: 70% Mortgage rate: 6.5% per annum, compounded

a) Based on the following information, use the weighted average method to calculate the capitalization rate:

LTV Ratio: 70%

Mortgage rate: 6.5% per annum, compounded annually

Equity dividend rate: 8.5% per annum, compounded annually

b) If the property's annual net operating income is $300,000, calculate the market value of the property.

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