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One way to estimate a capitalization rate is to use the Band of Investment technique. Suppose an equity investor expects a 15% return and puts
One way to estimate a capitalization rate is to use the Band of Investment technique. Suppose an equity investor expects a 15% return and puts up 20% of the project's cost. The remaining 80% is financed at a 13.5% rate of interest on an interest only loan. What is using the band of investment method? O 7.8% 14.7% O 14.25% O 13.8%
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