An apartment building is expected to generate the following income:

Year1 Year2 Year3 Year4

NOI 15,000 13,000 14,000 15,000

Depreciation 3,500 3,500 3,500 3,500

BTCFo 3,000 4,000 5,000 6,000

BTCF from sale 140,000

The initial investment (acquisition price) is $180,000 and the investor will finance the purchase with a fixed-rate mortgage loan of 150,000 at 7.5% interest rate for 25 years.

What is the Equity Dividend Rate? Show your work.