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A 10,000 square foot strip center leases for $10 per square foot per year. It is expected to have vacancies and bad debts of 10%
A 10,000 square foot strip center leases for $10 per square foot per year. It is expected to have vacancies and bad debts of 10% of potential gross rents, and operating expenses that are one-third of effective gross income. It is being purchased for $800,000 with $300,000 down and a mortgage on the balance at 6% for 25 years. What, approximately, is this property's equity dividend rate?
Group of answer choices
a. 6%
b. 7%
c. 8%
d. 9%
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