Given the Following Information,calculate the Appropriate Going-In Cap Rate Using

question 17

Multiple Choice

Given the following information,calculate the appropriate going-in cap rate using mortgage-equity rate analysis.Mortgage financing = 75%,Typical debt financing cap rate: 10%,Sale price: $1,950,000,Net operating income: $390,000.

• A)9.6%
• B)10%
• C)12.5%
• D)13.6%

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