Suppose a property has a cap rate of 8% and you can borrow at a mortgage constant of 9%. If you borrow 65% of the property price, what will be your equity yield?

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	9.00%
	8.00%
	6.14%
	5.10%

After-tax cash flow will exceed before-tax cash flow whenever:

	Taxable income is negative
	Capital expenditures exceed net operating income
	The building is fully depreciated
	Interest and depreciation expenses are less than net operating income