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Capital Structure: Assume that you purchase a commercial property for $1,000,000 using 80% debt and 20% equity. Over a 5 -year holding period, the market

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Capital Structure: Assume that you purchase a commercial property for $1,000,000 using 80% debt and 20% equity. Over a 5 -year holding period, the market value of the property increases to $1,250,000. Also, during the holding period, you pay off $300,000 of the debt through mortgage payments (aka equity buildup). Calculate your total equity $ amount and equity % amount of the capital structure at the end of the 5 -year period assuming you sell the property

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