Finance
A Louisiana property has an annual NOI of $55,000 and is purchased for $750,000. What is the capitalization rate?
A6.5%
B7.3%✓ Correct
C7.5%
D8.0%
Explanation
Cap Rate = NOI ÷ Value = $55,000 ÷ $750,000 = 0.0733 = 7.
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