What is meant by a capitalization (or cap) rate in reference to calculating a terminal value? What

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What is meant by a capitalization (or cap) rate in reference to calculating a terminal value? What other types of terminal values might be appropriate (i.e., other than smooth growth procedures)?

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Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

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Question Posted: Aug 13, 2012 10:12 PM

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What is meant by a capitalization (or cap) rate in reference to calculating a terminal value? What

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Dividing by the cap rate r g in the perpetuity formula is the appropriate mathematical simplifica...View the full answer

Entrepreneurial Finance

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