An overall capitalization rate (Ro) is divided into which type of income or cash flow to obtain an indicated market value?Multiple ChoiceNet operating income (NO)Effective gross Income (EG)Before-tax cash flow (BTCA)After-tax cash flow (ATCA)Potential gross income (PG)

Market value of a property = (NOI) / (RO)WhereNOI = Net Operating IncomeRO =Overall capitalization…

An overall capitalization rate (Ro) is divided into which type of Income or cash flow to obtain an indicated market value? Multiple Choice C Net operating Income (NO) Effective gross Income (EG) Before-tax cash flow (BTCA After-tax cash flow (ATCA) Potential gross Income (PGI)

An overall capitalization rate (Ro) is divided into which type of Income or cash flow to obtain an indicated market value? Multiple Choice C Net operating Income (NO) Effective gross Income (EG) Before-tax cash flow (BTCA After-tax cash flow (ATCA) Potential gross Income (PGI)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter17: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 1Q

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Question

An overall capitalization rate (Ro) is divided into which type of income or cash flow to obtain an indicated market value?
Multiple Choice
Net operating income (NO)
Effective gross Income (EG)
Before-tax cash flow (BTCA)
After-tax cash flow (ATCA)
Potential gross income (PG)

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