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A property is purchased for $15 million. Financing is obtained at a 75 percent loan-to-value ratio with total annual payments of $1,150,000. The property produces
A property is purchased for $15 million. Financing is obtained at a 75 percent loan-to-value ratio with total annual payments of $1,150,000. The property produces an NOI of $1,300,000. What is the equity dividend rate (ratio of first-year cash flow to equity)?
multiple choice
3.00%
3.40%
3.80%
4.60%
4.00%
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