If rents and value are slated to grow at 2 into perpetuity


PLEASE SHOW WORK If rents and value are slated to grow at 2% into perpetuity and the discount rate is 9%, what is the theoretically appropriate cap rate? Assume a liquidity premium of 1%. a. 6% b. 7% C. 8% d. Cannot be determined with the information given e. None of the above

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Financial Management: If rents and value are slated to grow at 2 into perpetuity
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