Equity Dividend Rate - use cash flow or NOI? schweser?

Under the Schweser Alternative Investment page 33 section, the Equity Dividend rate is calculated as

Equity Div Rate = First Year Cash Flow / Equity. (First Year Cash Flow is NOI - Debt Service).

Then in the Practice Exams, the afternoon session question 93. The Equity Dividend Rate is caluclated as NOI / Equity. They do not take out the debt service.

What am I missing? Is it calculated as Cash Flow or NOI over equity. If you follow the NOI - Debt Service your answer would of been incorrect.

Thanks for any clarificaiton!!!


It is definitely NOI - debt service. Maybe there is a twist on the particular problem you did that implies that there was no mortgage or loan or smth like that? Can you post the question info here or maybe tell me which specific practice exam you are referring to?