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Suppose the subject's net operating income is $100,000, the direct capitalization rate of the land
is 3.5%, the direct capitalization rate of the improvements is 6.0%, and the value of the
improvements is $750,000. What is the overall capitalization rate of the subject property
(rounded to the nearest tenth)? A. 4.3% B. 3.7% C. 5.0% D. 4.0%

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Suppose the subjects net operating income is $100,000, the direct ca.pdf

  • 1. Suppose the subject's net operating income is $100,000, the direct capitalization rate of the land is 3.5%, the direct capitalization rate of the improvements is 6.0%, and the value of the improvements is $750,000. What is the overall capitalization rate of the subject property (rounded to the nearest tenth)? A. 4.3% B. 3.7% C. 5.0% D. 4.0%