Question: We have stated that the cap rate is NOT a discount rate, but that they are related to each other. What is this relationship? Group

We have stated that the cap rate is NOT a discount rate, but that they are related to each other. What is this relationship?

Group of answer choices

growth rate = total return + cap rate

None of these are correct

cap rate = total return - growth rate

total return = cap rate - growth rate

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!