For questions 26-30, use the following case:

Property price: $4,750,000

Debt financing: Interest only loan (payment includes no amortization) Rate of 5.0 percent Amount: $3,000,000

Going-out cap rate in 5 years: 6.7 percent

Investors required yield, unlevered: 8 percent

Investors required yield, levered: 10 percent

PGI (Yrs 1-6): 625,000, 625,000, 625,000, 625,000, 625,000, 680,000

Vacany & Collection Loss (yrs 1-6): 35,000, 35,000, 35,000, 35,000, 35,000, 41,000

Operting Expense (yrs 1-6): 250,000, 250,000, 250,000, 250,000, 250,000, 275,000

Cap. Expenditures (yrs 1-6): 25,000, 25,000, 25,000, 25,000, 25,000, 30,000

26. What is the overall rate of capitalization, going in?

27. What is the equity dividend rate?

28. What is the debt coverage ratio?

29. What is the unlevered IRR for a holding period of 5 years?

30. What is the levered NPV for a holding period of 5 years?