Question: What is Capitalization (cap) Rate? Select one: a. spread between the required return and the risk-free inflation adjusted rate b. spread between the discount rate

What is Capitalization (cap) Rate? Select one: a. spread between the required return and the risk-free inflation adjusted rate b. spread between the discount rate and the required return c. spread between the prime rate and the required return d. spread between the risk-free rate and the default rate e. spread between the discount rate and the growth rate of cash flow in terminal value period (r - g)

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!