Question: Direct capitalization involves dividing the property`s expected annual NOI by A an overall capitalization rate B an annuity capitalization rate C a capital recovery rate

Direct capitalization involves dividing the property`s expected annual NOI by

A an overall capitalization rate

B an annuity capitalization rate

C a capital recovery rate

D a vacancy rate

QUESTION 2

when a borrower applies for a loan on an income producting property, the lender can determine the debt service coverage ratio by dividing the mortgage payment into the.

A net operating income

B potential gross income

C operating expenses

D effective gross income

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