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A property is purchased for $15 million. Financing is obtained at a 85 percent loan-to-value ratio with total annual payments of $1,240,000. The property produces

A property is purchased for $15 million. Financing is obtained at a 85 percent loan-to-value ratio with total annual payments of $1,240,000. The property produces an NOI of $1,500,000. What is the equity dividend rate (ratio of first-year cash flow to equity)?

multiple choice

14.44%

9.82%

13.29%

10.98%

11.56%

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