Use the following information to answer the next five questions:

Consider a property with the following pro forma operating statement:

PGI	$1,200,000
- V&C	60,000
EGI	1,140,000
- OE	456,000
NOI	684,000

The property can be purchased for $8.55 million. Financing is available for 75 percent of the purchase price with annual debt service payments of $519,572.

What is the property's operating expense ratio?

	A.	57.0%
	B.	38.0%
	C.	40.0%
	D.	5.0%