1. Price is ten times PGI, there are 10% vacancies, operating expenses are 40% of EGI. You are financing 60% of the purchase price, and the DSCR equals exactly What is the equity dividend rate (EDR)? For the property in number 1 above, what is the cap rate?
1. Price is ten times PGI, there are 10% vacancies, operating expenses are 40% of EGI. You are financing 60% of the purchase price, and the DSCR equals exactly What is the equity dividend rate (EDR)? For the property in number 1 above, what is the cap rate?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![1. Price is ten times PGI, there are 10% vacancies,
operating expenses are 40% of EGI. You are financing
60% of the purchase price, and the DSCR equals
exactly What is the equity dividend rate (EDR)?
For the property in number 1 above, what is the cap
rate?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc14b6799-c96d-44a7-b17a-162a4c110b25%2F55722273-6608-4a35-8074-799e20c17211%2Fi2orx3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Price is ten times PGI, there are 10% vacancies,
operating expenses are 40% of EGI. You are financing
60% of the purchase price, and the DSCR equals
exactly What is the equity dividend rate (EDR)?
For the property in number 1 above, what is the cap
rate?
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