Let us assume that an investor can obtain an 80% LTV loan for a property valued at 500,000 at a 10% interest rate to be amortized over 25 years with monthly payments. If the property generates $70,000 net operating income per year, answer the following.

What is the equity dividend rate?

a. 26.38%

b.15.48%

c. 25.93%

d. 28.56%