Question

Which traditional ratios used in real estate analysis are most closely related to the following concepts...

  1. Which traditional ratios used in real estate analysis are most closely related to the following concepts used in stock market analysis?

    1. Dividend yield

    2. Price-earnings ratio


Homework Answers

Answer #1

1. Cash on cash return ratio will be the ratio which is used in the real estate which is used to find the overall cash returns on the cash investment which has been made by the investor in the property so it would be able to find out the realisations by the investors and it is equal to the Dividend Yield because dividend yield is also realisation by the investors in the stock market

2. Market price to rent ratio is closely related to price to earning ratio because market price to rent ratio is determined in relationship with the monthly rent which is earned in respect to the overall market price of the property and it is similar to the price to earning ratio because price to earning ratio will calculate the market price in respect to the earnings made by the company

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