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?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter10: Valuing Early-stage Ventures

Section: Chapter Questions

Problem 1gM

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Question

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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