Thursday, March 3, 2016

Help calculate the equity yield rate?


Help calculate the equity yield rate?
Added (1). an investor purchases an income producing property for $5,000,000. He invests $1,200,00 as equity capital and gets a mortgage bond for the balance of the purchase price over a 25 yr term at 12% interest per annum. The net yield on the property for the first yr is 15%. Calculate the equity yield rate during the 1st year of investment.

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