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:

Value

The importance, worth, or usefulness of something to someone, often measured in terms of its utility or monetary worth.

Opposite

Being entirely different or sharply contrasting in position, direction, or character.

New Perspective

A fresh viewpoint or innovative approach to looking at a problem, situation, or system.

Habit-Breaking Strategy

A method or plan designed to help individuals break free from routines or behaviors that are considered harmful or unproductive.