Suppose that you have begun to gather some demographic data in order to project the
potential sales of a new development project. The developer hopes to be able to target
the following household types who fall in the upper 10% of income brackets: Empty
Nesters, Single Parents, and Unrelated Individuals. Utilizing the following population
information, determine the core market share that the development project yearns to
target with this project. Total Owner Occupant Households: 48,000; Traditional
Families in the Upper 10% of Income Brackets: 25,000; Empty Nesters in the Upper
10% of Income Brackets: 5,000; Single Parents in the Upper 10% of Income Brackets:
10,000; Unrelated Individuals in the Upper 10% of Income Brackets: 8,000
A. 4.17%
B. 47.92%
C. 52.08%
D. 92.00%
Given the following information, calculate the going-in capitalization rate for the
specific property. First-year NOI: $18,750, Acquisition price: $150,000, Equity
Investment: 20%.
A. 2.5%
B. 12.5%
C. 15.6%
D. 62.5%