Question: How would you find the capitilization rate if the Vacancy and Collection Losses is a percentage instead of a dollar amount? Given the following information,

How would you find the capitilization rate if the Vacancy and Collection Losses is a percentage instead of a dollar amount?

Given the following information, calculate the overall capitalization rate: sale price: $1,500,000; potential gross income: $250,000; vacancy and collection losses: 5%; and operating expenses: $100,000. a) 9.17% b) 15.83% c) 24.17% d) 16.67%

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