Property Valuation
The 'band of investment' technique in Kentucky is used to derive a capitalization rate by:
AAnalyzing band ranges in the comparable sales
BWeighting the required returns on debt and equity based on their proportions in the investment✓ Correct
CConducting a band survey of comparable investors
DUsing the tax assessment as a starting point
Explanation
The band of investment technique weights the mortgage constant (debt) and equity dividend rate (equity) proportionally (LTV and equity ratio) to derive an overall capitalization rate.
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