Question
A shopping center sold for $1,500,000. Typical financing terms are 60.0% loan to value (LTV) with 5.0% interest rate, amortized monthly over 25 years.
A shopping center sold for $1,500,000. Typical financing terms are 60.0% loan to value (LTV) with 5.0% interest rate, amortized monthly over 25 years. If the before tax cash flow is $26,864, what is the overall capitalization rate and equity dividend rate?
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
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