Which of the following choices best describes the elements needed to calculate a capitalization rate? a....
Which of the following choices best describes the elements needed to calculate a capitalization rate?
a. Property value, gross rental income, depreciation
b. Property value, rental income, operating expenses, capital expenses
c. Property value, effective gross income, general expenses
d. Property value, rental income, rental profit taxes
Homework Answers
We can see that formula for capitalization rate = Gross income - expenses/property value
SO C is the correct option
incorrect option
A = incorrect since deprciation is not required to calculate capitalization rate
B = incorrect since capital expenses is not required to calculate capitalization rate
C = taxes again not needed to calculate capitalisation rate
c. Property value, effective gross income, general expenses
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Which of the following choices best describes the elements
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