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:

Maximum Penalty

The highest possible punishment or fine that can be imposed for a particular offense or violation under the law.

Willfully Violates

The act of intentionally breaking a law or regulation.

Securities Act Of 1933

The first major federal legislation to regulate the offer and sale of securities. Prior to this act, regulation of securities was chiefly governed by state laws, commonly referred to as blue sky laws. When Congress enacted this act, it left existing state securities laws (“blue sky laws”) in place.

Securities Regulation

A field of law that governs the issuance, trading, and enforcement of financial instruments like stocks and bonds, ensuring transparency, fairness, and protection for investors.