The equity dividend rates usefulness is limited because the

Question

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.