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Capitalization Rate

What Does It Mean?
What Does Capitalization Rate Mean?
A method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step. This is done by dividing the income estimate by an appropriate rate.

Also known as "cap rate".
Investopedia Says
Investopedia explains Capitalization Rate
The relationship between Cap Rate (R), Income (I), and Estimated Value (V) is as follows:

V = I / R
I = V x R
R = I / V
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