Question - A property is sold for $500,000.00 with a $100,000.00 down payment and a $400,000.00 mortgage. The debt service on the mortgage is $54,000.00 per year with a potential gross income of $110,00.00 per year. The effective gross income is $104,500.00 and the operating expenses are $36,500.00 that includes reserves of $3,000.00. What is the equity dividend rate?