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Which of the following IS NOT CORRECT regarding capitalization rates? a. Capitalization rates are directly observable by computing the inverse of the relevant observed pricing

Which of the following IS NOT CORRECT regarding capitalization rates?

a. Capitalization rates are directly observable by computing the inverse of the relevant observed pricing multiple.

b. Growth rates are inferred from the capitalization rates and estimates of the cost of capital.

c. Cost of capital is inferred from the capitalization rate and estimates of the growth rate.

d. Cost of equity is directly observable.

DO NOT COPY FROM CHEGG, AND PLEASE GIVE FULL EXPLANATION.

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