Posted: 5/18/2010 9:02:45 PM EDT
|
Yes, this is GD, but I was trying to get a quick answer. I'll post a similar question in the finance forum.
I'm looking at a proposed valuation for an office building. There is a Capitalization Rate Analysis at various interest rates based on estimated expenses and income. Now, I figured out the the analysis is the profit (rent - expenses) paid in perpetuity. Doing a little searching, I learned that this is one accepted valuation approach. I guess my question is how are you are supposed to figure out what rate to use? |