Your client and his rich buddies want to invest in real estate and need your help in determining what rate of return they need to meet their investment objectives. The banker says they will need 40% equity at purchase to get a loan at a 6% interest rate for 20 years. Your client and his rich buddies require a 10% rate of return on their equity. Answer the following: Using the Band of Investment method, what is the minimum overall cap rate that they must have to meet their investment objectives? Be sure to show your setup and calculations