Market capitalization rate

Market capitalization rate

Expected return on a security. The market-consensus estimate of the appropriate discount rate for a firm's cash flow.
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(2009) found that interest rate significantly positive relationship on stock market capitalization rate.
* Finding that the market capitalization rate on land was always 8% without providing any actual market data to support such a rate.
Appraised value is based on a stabilized net operating income (NOI) divided by a market capitalization rate. The NOI should be in line with historical performance, not reflecting a sudden rise based on unproven assumptions.
Real market capitalization rate (size proxy) is defined by the growth rate of market capitalization of KSE-100 index at the end of ever fiscal year and real value traded rate (activity proxy) is defined by the growth rate of trading volume of KSE-100 index at the end of ever fiscal year.
Most studies suggest that the macroeconomic environment has an important effect on the stock market capitalization rate such as gross domestic product, exchange rates, interest rates, current account and money supply (Kurihara, 2006; Ologunde et al., 2006).
The sales price represents $154 per square foot with a market capitalization rate of 7.75 percent.
Coefficient [b.sub.4] measures the brand assets' market capitalization rate for firms with at least one acquisition/disposal transaction that avoided the LSE rules and had high leverage; and [b.sub.9] and [b.sub.10] measure how this rate differs for firms without transactions that avoided the LSE rules or had low-leverage, respectively.
The failure of financial markets to correctly price the pro rata value of the corporation is shown primarily by the inability of existing models (26) to generate a reliable estimate of the appropriate discount rate or market capitalization rate for equity capital on a continuing basis.
"One common mistake that we see," says Monroe, "is when investors and lenders who come into the industry from office or apartment buildings apply a traditional real estate market capitalization rate to nursing homes.
(4) In the direct capitalization portion, a market capitalization rate is used that is based on the premise (however flawed) that demand was evidenced by recent building activity.
The sales price represents $195 per square foot with a market capitalization rate of 7.71 percent.
In other words, the chosen market capitalization rate must match the income--and the proportion of income--that is capitalized.