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2. 20 percent) Suppose you have developed the following information for a potential investment: current market value is 51,100,000: anticipated loan to value ratio is
2. 20 percent) Suppose you have developed the following information for a potential investment: current market value is 51,100,000: anticipated loan to value ratio is 80 with 2 points and predicated cash flows of ATCFI - 538,560, ATCF2 - $41,780, ATCF3-537210, ATCF4-539,127, and ATER4-5191,730. Further, assume the investor's minimum required after-tax rate of return on equity is 11.5% What is the internal rate of return on this potential investment? b. What is the profitability index on this investment? 2. 20 percent) Suppose you have developed the following information for a potential investment: current market value is 51,100,000: anticipated loan to value ratio is 80 with 2 points and predicated cash flows of ATCFI - 538,560, ATCF2 - $41,780, ATCF3-537210, ATCF4-539,127, and ATER4-5191,730. Further, assume the investor's minimum required after-tax rate of return on equity is 11.5% What is the internal rate of return on this potential investment? b. What is the profitability index on this investment
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Option Strategies For Earnings Announcements A Comprehensive, Empirical Analysis
Authors: Ping Zhou , John Shon
1st Edition
0132947390,0132947404
