Given the following information, calculate the equity dividend rate for this investment. First-year NOI: $87,750, Acquisition price: $1,250,000, Equity Investment: 35%; Before-tax cash flow: $53,500.

Question

Quizplus · Accepted Answer

The equity dividend rate is calculated by dividing the before-tax cash flow by the equity investment. The equity investment is 35% of the acquisition price, which is $1,250,000 * 0.35 = $437,500. The equity dividend rate is $53,500 / $437,500 = 0.122 or 12.2%.

Given the Following Information, Calculate the Equity Dividend Rate for This