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QUESTION 14 When cost of debt goes up, cap rates typically go down, high cost of borrowing means one can make more money O stay the same, the cost of debt does not affect market cap rates O go up, investers demand a higher return to justify the cost of debt O can go up or down, depending on the commercial real estate sector sector

QUESTION 14 When cost of debt goes up, cap rates typically go down, high cost of borrowing means one can make more money O stay the same, the cost of debt does not affect market cap rates O go up, investers demand a higher return to justify the cost of debt O can go up or down, depending on the commercial real estate sector sector

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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QUESTION 14 When cost of debt goes up, cap rates typically go down, high cost of borrowing means one can make more money O stay the same, the cost of debt does not affect market cap rates O go up, investers demand a higher return to justify the cost of debt O can go up or down, depending on the commercial real estate sector sector
Transcribed Image Text:QUESTION 14 When cost of debt goes up, cap rates typically go down, high cost of borrowing means one can make more money O stay the same, the cost of debt does not affect market cap rates O go up, investers demand a higher return to justify the cost of debt O can go up or down, depending on the commercial real estate sector sector
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