Complete the waterfall shown in Exhibit 10 using the benchmark assumptions outlined in the case. Under these assumptions, calculate the expected return to Wildcat and its limited partners and compare those returns to the property-level return on Financial Commons if it is sold after three years. Returns to Wildcat should be calculated without including its management fee.

Exhibit 10 includes this whole screenshot with Question 1.

Widcat contribution percentage nvestor preferred return Widcat preferred return Promote: Wildcat share Year of sale Sales proceeds (net of f nvestor IRR preference Year 1 Year 3 2012 ear 0 ear 2 uestion 1 Entity Equity) Level Operational ESTC quity Level Entity (Equity)Level Reversion EBTC ash Flows (3,640,000.00)276,953.04350,54.71 424,341.90 5810,163.93 5,234,505.83 3,640,00o Capital Stack Investor (LPs) Equity Capital Account: 2010 011 3,458,000.00 3,458,000.003,458,000.00 Beginning Equity Investment Balance Annual Preferred investment [O year 95% of down p Preferred Return Earned 18% of Preferred Return Paid [based on cash f Accrued But Unpaid Preferred Return Ending Equity Investment Balance 3458,000.00 276,640.00276,640.00276,640.00 276,640.00276,640.00276,640.00 $3,458,000.00 3,458,000.00 3,458,000.003,458,000.00 Equity Capital Account: 182,000.00 Beginning Equity Investment Balance Annual Subordinated investment [O year S% of down p Subordinated Return Earned Subordinated Return Paid Accrued But Unpaid Subordinated Return $182,000.00 182,000.00 Operational cash flow payments vestor Level (LPs) Cash Flows 8,0c0.00) Cash Flows lexcluding management Reversion Allacation payments: Investor (LP) Return of Equ ty (w th preferencel [ending capital stack Wildcat Return of Equity lending capital stackb memo: Investor (LP) operational cash flow Investor (LP) Additional proceeds needed to guarantee target IRR [O for Investor (LP) Additional proceeds actualy delvered to meet guarantee 0 this scenario Investor(LP) Additional proceeds [ 70% of remaining sale proceeds after Wildcat Additional proceeds 30% of remaining sale proceeds after al required payments] No modeling required for Investor ILPI cash flow to get to target Allocated reversion cash flow payments: Investor LPI Level Cash Fows Level Cash Flows IRR calculations Investor (LP Level Cash Flows loperational reversion Wldcat Level Cash Flows Widcat contribution percentage nvestor preferred return Widcat preferred return Promote: Wildcat share Year of sale Sales proceeds (net of f nvestor IRR preference Year 1 Year 3 2012 ear 0 ear 2 uestion 1 Entity Equity) Level Operational ESTC quity Level Entity (Equity)Level Reversion EBTC ash Flows (3,640,000.00)276,953.04350,54.71 424,341.90 5810,163.93 5,234,505.83 3,640,00o Capital Stack Investor (LPs) Equity Capital Account: 2010 011 3,458,000.00 3,458,000.003,458,000.00 Beginning Equity Investment Balance Annual Preferred investment [O year 95% of down p Preferred Return Earned 18% of Preferred Return Paid [based on cash f Accrued But Unpaid Preferred Return Ending Equity Investment Balance 3458,000.00 276,640.00276,640.00276,640.00 276,640.00276,640.00276,640.00 $3,458,000.00 3,458,000.00 3,458,000.003,458,000.00 Equity Capital Account: 182,000.00 Beginning Equity Investment Balance Annual Subordinated investment [O year S% of down p Subordinated Return Earned Subordinated Return Paid Accrued But Unpaid Subordinated Return $182,000.00 182,000.00 Operational cash flow payments vestor Level (LPs) Cash Flows 8,0c0.00) Cash Flows lexcluding management Reversion Allacation payments: Investor (LP) Return of Equ ty (w th preferencel [ending capital stack Wildcat Return of Equity lending capital stackb memo: Investor (LP) operational cash flow Investor (LP) Additional proceeds needed to guarantee target IRR [O for Investor (LP) Additional proceeds actualy delvered to meet guarantee 0 this scenario Investor(LP) Additional proceeds [ 70% of remaining sale proceeds after Wildcat Additional proceeds 30% of remaining sale proceeds after al required payments] No modeling required for Investor ILPI cash flow to get to target Allocated reversion cash flow payments: Investor LPI Level Cash Fows Level Cash Flows IRR calculations Investor (LP Level Cash Flows loperational reversion Wldcat Level Cash Flows