Equity dividend rate is 0.0675
Cap rate is 0.054
Equity dividend rate = (NOI - mortgage payments)/Equity proportion
Cap rate = NOI/Price
DSCR = NOI/Mortgage payments
Equity proportion = Price*(1-financing %)
NOI = PGI*(1-vacancies %) *(1-EGI %)
What Is Equity Dividend Rate?
The equity dividend rate is the ratio of the cash you receive in a given year to the cash you invest in the property. The result is then multiplied by 100 percent. In this case, the cash you invest is not always the sale price
How do you calculate equity dividend ratio?
The equity Dividend rate (also referred to as the equity Capitalization fee and coins on cash go back) is the ratio of a single 12 months's before Tax coins waft and the equity funding within the property. fairness Dividend rate = fairness investment ÷ earlier than Tax cash go with the flow.
Complete Question-
Price is ten times PGI, there are 5% vacancies, operating expenses are 40% of EGI.
You are financing 50% of the purchase price, and the DSCR equals exactly
2. What is the equity dividend rate (EDR)?
For the property in number 1 above, what is the cap rate?
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