What is equity dividend rate?

First-year Cash Flow After Debt Service divided by equity invested, also called the cash-on-cash return. It measures current cash yield only, not total return, so it typically sits below the levered IRR.

Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.

From the free Real Estate Finance course by Devon Coombs, CPA, MBA.