If the interest rate on a 25-year 500000 loan amortized, Ask an Expert

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If the interest rate on a 25-year, $500,000 loan amortized over 300 months is 6% per year, and the overall capitalization rate for a property financed with that loan is 7%, what is the cash-on- cash rate of return (equity dividend rate) for the equity investors in this property?

Is this evidence of positive leverage, or is this evidence of negative leverage?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92766686

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