Question: What is meant by a capitalization (or cap) rate in reference to calculating a terminal value? What other types of terminal values might be appropriate
What is meant by a capitalization (or cap) rate in reference to calculating a terminal value? What other types of terminal values might be appropriate (i.e., other than smooth growth procedures)?
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Dividing by the cap rate r g in the perpetuity formula is the appropriate mathematical simplifica... View full answer
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