Question
Using the data provided, calculate the capitalization rate and the value using direct capitalization under each of the following methods: (10 points) NOI: $14,000 Typical
- Using the data provided, calculate the capitalization rate and the value using direct capitalization under each of the following methods: (10 points)
NOI: $14,000
Typical Loan Terms 75% loan to value ratio
8.5% interest
20 year amortization monthly
Equity Dividend Rate: 6%
Loan Amount: $90,000
Risk Free Rate 2.5
Premium for Risk 3%
Premium for Illiquidity 2%
Premium for Management 1%
Band of Investment Technique:
Summation Method:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Misbehavior Of Markets A Fractal View Of Financial Turbulence
Authors: Benoit Mandelbrot, Richard L Hudson
1st Edition
0465043577, 978-0465043576
