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!!!