All of the following are determinants of cap rates in the property asset market, except: Select one: a. Comparative yields in the capital market. b. The risk perceived for the property (as determined in the space and capital market). c. The net operating income divided by the property price. d. The expected growth in property rents (as determined in the space market). e. The risk-free rate.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3MC: The third step for making a capital investment decision is to establish baseline criteria for...
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All of the following are determinants of cap rates in the property asset market, except:

Select one:

a.

Comparative yields in the capital market.

b.

The risk perceived for the property (as determined in the space and capital market).

c.

The net operating income divided by the property price.

d.

The expected growth in property rents (as determined in the space market).

e.

The risk-free rate. 

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