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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
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
1) What is the mortgage constant? (Round to the nearest 0.01)
2) What is the annual payment of the loan? (Round to the nearest $1)
3) What is the capitalization rate?
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