A property is purchased for $1,000,000. Financing is obtained at a 70% loan-to-value ratio with annual debt service of $65,000. The property produces a net operating income of $95,000. If in the current market, the acceptable equity dividend rate is 7% or higher, would this project be acceptable?

Group of answer choices

It is impossible to answer this question using the information provided.

No, because the equity dividend rate is higher than 7%.

Yes, because the equity dividend rate is 10%.

No, because the equity dividend rate is 5.5%.