CAPITALIZATION RATE Definition

Bookmark and Share

CAPITALIZATION RATE, also known as CAP RATE, is the rate of return a property will produce on the owners investment. It is stated as a rate of interest or discount rate used to convert a series of future payments into a single present value. In real estate, the rate includes annual capital recovery in addition to interest.

Learn new Accounting Terms

CIBT is an acronym for Cash Income Before Taxes.

OPERATING EFFECTIVENESS is how an internal control was applied, the consistency with which it was applied, and by whom.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.