Suppose that you are considering the purchase of an apartment building as a real estate investment. You believe that the purchase price of the property would be 4 million and that you would be able to finance the purchase with a 30-year loan for 85% of the purchase price with an annual interest rate of 5% with monthly payments and compounding. Use the information below to calculate the Year 1 equity dividend rate for this property. Year 1 Potential Gross Income: Year 1 Effective Gross Income: Year 1 Net Operating Income: Year 1 Before-Tax Cash Flow: a. 1.91% b. 7.49% C. 12.71% d. 13.55% e. 74.89% $550,000 $516,750 $299,553 $81,285