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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. 62.50%

b. 1.60%

c. 58.85%

d. 37.50%

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