What is cap rate indicated by technique

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Your client asks you to indicate a cap rate for the subject property using the band-of-investments technique, using the following parameters:

-80% loan-to-value ratio

-3.5% interest rate (monthly compounding)

-30-year amortization

-8% equity dividend rate

What is your cap rate indicated by this technique? Using the NOI from question 3, what would that indicate is the value of the subject property (rounded to the nearest $10,000)?

Reference no: EM133069026

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