An investment opportunity having a market price of $1,000,000 is available. You could obtain a $750,000,25-year mortgage loan requiring equal monthly payments with interest at 7.0 percent. The following operating results are expected during the first year: Effective gross income $200,000 Less operating expenses and CAPX $100,000 Net operating income $100,000 For the first year only, determine the: a. Gross income multiplier. b. Operating expense ratio. c. Monthly and annual mortgage payment d. Debt coverage ratio. e. Debt yield ratio. f. Overall capitalization rate. g. Equity dividend rate.

An investment opportunity having a market price of $1,000,000 is available. You could obtain a $750,000,25-year mortgage loan requiring equal monthly payments with interest at 7.0 percent The following operating results are expected during the first year: Effective gross income $200,000 Less operating expenses and CAPX $100,000 Net operating income $100,000 For the first year only, determine the: a. Gross income multiplier. b. Operating expense ratio. c. Monthly and annual mortgage payment. d. Debt coverage ratio. e. Debt yield ratio. f. Overall capitalization rate. g. Equity dividend rate