capitalization rate - definition in the Business English Dictionary - Cambridge Dictionaries Online

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English definition of “capitalization rate”

capitalization rate

noun [C] ( UK also capitalisation rate)
 
 
( also cap rate)
ACCOUNTING, FINANCE the rate of interest used to calculate the present value of an investment or property that will provide an income in the future: Investors use the cap rate to estimate the purchase price for different types of income-producing properties.
(Definition of capitalization rate from the Cambridge Business English Dictionary © Cambridge University Press)
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