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In the following commercial real estate acquisition deal, the purchase is financed by investors' equity, primary debt with the interest rate of 6% and the
In the following commercial real estate acquisition deal, the purchase is financed by investors' equity, primary debt with the interest rate of 6% and the mezzanine debt with the interest rate of 11%. If the primary debt and the mezzanine debt are interest-only mortgages, what is the return of equity (choose the closest answer) 10%28%20%15%7.5%
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