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The market is currently willing to pay $19 for each dollar of current rental income. Given collapsing inflation and the RBA expected to decrease the

The market is currently willing to pay $19 for each dollar of current rental income. Given collapsing inflation and the RBA expected to decrease the official cash rate by a further 100 basis points, which of the following expectation iss the most correct and likely to occur.

Select one:

a.

The implied cap rate will remain unchanged.

b.

The implied cap rate will increase to 6.5%

c.

The implied cap rate will decrease to 4%

d.

The implied cap rate will decrease to 3.5%

e.

The implied cap rate will increase to 4%

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