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DF% (Debt financing rate) = 60%; ER (Required rate of return on equity) = 15%; Original Loan = $500,000 with annual payment of 5% for

  1. DF% (Debt financing rate) = 60%; ER (Required rate of return on equity) = 15%; Original Loan = $500,000 with annual payment of 5% for 30 years

What is the capitalization rate?

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