easy · National Real Estate Exam math
During a beginner review, Kai Irwin asks which statement best defines capitalization math.
Which definition should the learner use?
- Value equals NOI divided by the capitalization rate when direct capitalization applies.
- It is only an internal brokerage label with no legal, financing, valuation, or transaction effect.
- It means a party’s preferred result controls even when the definition’s required facts are absent.
- It means this approach is correct: A learner multiplies NOI by the rate to estimate value.
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