A Property Is Financed with a 75% Loan at 11

Multiple Choice

A property is financed with a 75% loan at 11.5% over 25 years.The property produces an ATIRR on total investment of 7.34% based on a tax rate of 31%.What can be said about the leverage associated with the property?

A) Negative leverage exists
B) Positive leverage exits
C) No leverage exists
D) Can't tell without knowing the ATIRR on equity