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3) You are interested in purchasing an apartment complex for $2,000,000 that has Net Operating Income (NOI) of $120,000 and is financed with an 80%

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3) You are interested in purchasing an apartment complex for $2,000,000 that has Net Operating Income (NOI) of $120,000 and is financed with an 80% LTV mortgage at 4% A. What is the Cap Rate? B. What is the ROA? C. What is the leverage ratio? D. Approximate the ROE using the Holy Grail eHandout)

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