What is the Net Income Multiplier for each of the following markets? Show your work and round to the nearest $0.01.

Market A: 5.25% Capitalization Rate

Market B: 8.00% Capitalization Rate

Market C: 13.00% Capitalization Rate

1(b). Briefly explain the importance of the Net Income Multiplier. What does it tell an investor about the market as a whole? What can it tell an investor about a particular investment opportunity?

1(c). All else being equal, what is the value of an income generating property as the market capitalization rate increases? Briefly explain your reasoning.

Answer rating: 100% (QA)

1 a NIM for market A 1525 1904 NIM for Market B 18 125 NIM for Market C 113 769 b Net I... View the full answer