1. The equity dividend rate's usefulness is limited because the analysis does not incorporate income tax considerations.

1) True

2) False

2. The equity dividend rate:

1) incorporates income tax considerations.

2) expresses before-tax cash flow as a percent of the required equity cash outlay.

3) expresses before-tax cash flow as a percent of the property's value or price.

4) expresses net operating income as a percent of the required equity cash outlay.