Given the Following Information, Calculate the Overall Capitalization Rate

question 10

Multiple Choice

Given the following information, calculate the overall capitalization rate. Sale price: $950,000, Potential Gross Income: $250,000, Vacancy and Collection Losses: $50,000, and Operating Expenses: $50,000.

• A) 15.8%
• B) 21.1%
• C) 26.3%
• D) 36.8%

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Definitions:

Dualistic

Relating to the concept or belief that reality consists of two fundamental components, often seen as the physical and the spiritual or the mind and the body.

Materialistic

Describes a value system that is preoccupied with possessions and the social status they convey, rather than intangible qualities or values.

Consciousness

The state of being aware of and able to think about oneself, one's surroundings, and one's thoughts and feelings.

Teratogens

Environmental substances that can harm prenatal development.