Calculating Cap Rate
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Cap rate - A contraction of capitalization rate, the cap rate is the assumed rate of return on an investment in real estate. The cap rate is commonly used in the valuation of commercial and investment property because it directly links the value to the income produced by the property.
Interest rate cap and floor - ==Interest rate cap==
Price-cap regulation - Price-cap regulation is a form of regulation designed in the 1980s by UK Treasury economist Steven Littlechild, which has been applied to all of the privatized British network utilities. It is contrasted with rate-of-return regulation, in which utilities are permitted a set rate of return on capital.
Capitalization rate - A Capitalization Rate (or "Cap Rate") is a measure of the ratio between the net income produced by an asset (usually real estate) and its capital cost (the original price paid to own the asset). The rate is calculated in a simple fashion as follows:
calculatingcaprate
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