21. You purchased a property for $4,000,000 using 50% LTV. If net cash flow is $200,000, what is the equity dividend rate?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...
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21. You purchased a property for $4,000,000 using 50% LTV. If
net cash flow is $200,000, what is the equity dividend rate?
22. You plan to purchase a property which has an expected NOI
of $200,000. You plan to borrow $1,500,000 at a 5% annual
rate for 30 years. What is the DCR for this investment?
23. If the property above is being purchased at an 8% cap rate,
assuming the same loan information what is the LTV for this
purchase?
Transcribed Image Text:21. You purchased a property for $4,000,000 using 50% LTV. If net cash flow is $200,000, what is the equity dividend rate? 22. You plan to purchase a property which has an expected NOI of $200,000. You plan to borrow $1,500,000 at a 5% annual rate for 30 years. What is the DCR for this investment? 23. If the property above is being purchased at an 8% cap rate, assuming the same loan information what is the LTV for this purchase?
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