What is a capitalization rate and how is it determined?

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The process of developing a capitalization rate by comparing net income figures and sales prices
of comparable properties is one of the techniques of direct capitalization. What is a capitalization
rate and how is it determined?
Your discussion should include two references to outside research such as trade publications or
scholarly references. Your summary below should be a minimum of 250 words with references
following current APA standards.

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