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The market value of equity divided by the total annual revenues pricing multiple is computed as 1.60 and the risk free rate is 3.65%. What

The market value of equity divided by the total annual revenues pricing multiple is computed as 1.60 and the risk free rate is 3.65%. What is the appropriately computed capitalization rate for annual revenues?

a. 1.60

b. 37.50

c. 58.85

d. 62.50

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