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What is a capitalization rate? a. Divisor (or multiplier) used to convert a defined stream of income to present value b. The price/earnings ratio divided
What is a capitalization rate?
a. Divisor (or multiplier) used to convert a defined stream of income to present value
b. The price/earnings ratio divided by the dividend paying capacity
c. The calculated external factor and internal factor multiplied by the investment factor
d. Rate of return used to convert a series of future income amounts to their present value
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