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5. (4 total pts) You are looking at a $1,000,000 acquisition. Your bank has told you that they will lend 70% Loan-to-Value at 4.75% for
5. (4 total pts) You are looking at a $1,000,000 acquisition. Your bank has told you that they will lend 70% Loan-to-Value at 4.75% for 10 years with a 30-year amortization period. Your investors are seeking a 15% rate of return. (a) What is your weighted average cost of capital for doing this deal? + SO (b) If you find a lender willing to let you go to 75% Loan to Value, how does that change your cost of capital
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