Which of the Following Is Not One of the Three

Multiple Choice

Which of the following is not one of the three approaches discussed in Chapter 11 to determine the appropriate discount rate or opportunity cost of capital in property valuation?

A) Historical evidence (such as the NCREIF Index total return history) .
B) Survey evidence (based on what market participants and brokers say investors are looking for) .
C) The average WACC in the REIT industry determined from REIT share price capital returns in the stock market combined with typical commercial mortgage interest rates. (This wasn't in Ch 11, and also you would need to use Total (not capital ) returns from REIT share prices.)
D) Empirical evidence of property cap rates plus typical rental growth minus depreciation, less typical capital expenditures as a fraction of property value.