The risk free interest rate is 150 basis points. The market is assigning a risk premium of 300 basis points to upscale garden-style apartment complexes located in high growth southern United States cities. You own such an apartment complex that produced cashflow last year for investor returns and debt payments of $1.25 million. Your investors want to sell because they believe cap rates will increase in the next year. What selling price would you recommend for the property?

Question 7 options:

$83.3 million

$27.8 million

$41.7 million

$23.2 million

Answer rating: 100% (QA)

c 41 7 million The selling price i... View the full answer