Use the information to answer questions 23 and 24 below: Suppose an apartment complex sold with a cap rate of 10%. It sold with a Gross Income Multiplier of 5. No vacancies are expected. (Make up imaginary income statement to assist. This is a gift, take a deep breath.)

23.) What is its operating expense ratio?

a.) 5%

b.) 50%

c.) 25%

d.) 75%

e.) 15%

24.) If the debt service for this property is equal to its operating expenses, what is the propertys break even ratio?

a.) 10%

b.) 100%

c.) 50%

d.) 150%

e.) 30%