abstract This article explores the...

abstract

This article explores the relationship between the overall capitalization rate ([Rsub0]) and the discount rate ([Ysub0]) It illustrates to what degree value equivalency can be achieved between direct capitalization and yield capitalization (i.e., discounted cash flow) when the anticipated percentage change in annual trap operating income (NOI) is made to correspond to the spread between a uniquely paired [Rsub0] and [Ysub0] A number of investor scan simulations are performed as further support for the premise that each uniquely paired [Rsub0] and [Ysub0] is linked according to the corresponding income-growth factor, and illustrates that investor examines can be reliably used as a source