Home > Terms > English, UK (UE) > Capitalization rate

Capitalization rate

Capitalization rate is the rate of interest that is considered a reasonable return on the investment used in capitalization net income to determine the value of the property.

This is auto-generated content. You can help to improve it.
0
Improve it
More
Collect to Blossary

Other Languages:

More

Member comments

You have to log in to post to discussions.

Related terms

capitalization rate
Financial services; Real estate investment

Capitalization rate is the rate of interest that is considered a reasonable return on the investment used in capitalization net income to determine the value of the property.

capitalization rate
Banking; Investment banking

See capitalization.

capitalization rate
Financial services; General Finance

The rate of interest used to calculate the present value of a number of future payments.

capitalization rate
Accounting; Tax

The rate of interest used to discount the future income from a property to arrive at a present value

capitalization rate
Real estate; General

A method used to estimate the value of a property based on the rate of return on investment.

capitalization rate
Banking; Business services; Mergers & acquisitions

The discount rate used by practitioners if the cash flows of the firm are not expected to grow or are expected to grow at a constant rate indefinitely.

accelerated cost recovery system (ACRS)
Financial services; Real estate investment

Before 1981, assets used for the production of income were depreciable if they were subject to wear and tear or decline due to natural causes or obsolescence. Assets that did not ...

accelerated depreciation
Financial services; Real estate investment

Accelerated depreciation is a method of depreciation in which larger deductions are taken earlier in the life of the asset than with the straight-line method. Examples include the ...

account
Financial services; Real estate investment

An account is a written record of a business transaction expressed in money and kept in a ledger.

accounting principles
Financial services; Real estate investment

Accounting principles refer to an accounting doctrine that explains current practices and is a guide for the selection of accounting conventions or procedures when alternatives ...

accrued depreciation
Financial services; Real estate investment

Accrued depreciation is the difference between the cost of replacing new property and the present market value of the property.

active income
Financial services; Real estate investment

Active income is all taxable income of a taxpayer except income from a passive activity and portfolio income. Passive activity is something in which the taxpayer does not actively ...

Terms in the News

Featured Terms

Harry8L
  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: Energy Category: Shale gas

Oil War of 2014

The Oil War of 2014 was a global competition for oil market share between traditional oil producing countries led by the OPEC and the surging US shale ...

Contributor

Featured blossaries

Words that should be banned in 2015

Category: Languages   1 2 Terms

Food to taste in Pakistan

Category: Food   1 2 Terms

Browers Terms By Category

TERMS

SOCIAL

EXTRAS

SOLUTIONS