Property Valuation
In Kansas, the 'band of investment' technique is used to derive a capitalization rate from:
AThe average of multiple investment properties
BA weighted average of the return requirements of both equity and debt investors in a property✓ Correct
CThe interest rate on bank investment certificates
DThe prevailing Treasury bond rate
Explanation
The band of investment technique develops a cap rate by weighting the debt service constant (for the mortgage portion) and the equity dividend rate (for the equity portion) according to their respective proportions of value.
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