The Capitalization or "Cap" Rate Is the Spread Between the Discount

question 33

True/False

The capitalization or "cap" rate is the spread between the discount rate and the growth rate of cash flow in the terminal value period.

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Definitions:

Sample Size

The number of observations or data points collected from a population for the purpose of statistical analysis.

Infinite Population

A hypothetical or actual population that is so large that it is considered limitless for practical statistical sampling purposes.

Standard Error

A statistical measure that estimates the variability or precision of a sample mean compared to the true population mean.

Sampling Distribution

The distribution of a statistic calculated from multiple samples of a population.