|
Equity Dividend Rate [2105] |
Home Previous Next |
|
If the mortgage constant is 0.098762, the loan to value ratio is 80%, and the overall capitalization rate is 12%, what is the equity dividend rate? [2105]
0.12 = (0.098762 x 0.8) + (Equity Dividend Rate x .2) therefore 0.12 - (0.098762 x 0.8) = 0.2 x Equity Dividend Rate and 0.04099 = 0.2 x Equity Dividend Rate and
Equity Dividend Rate = 0.04099 / 0.2 = 20.5% |