Question 1 (40%) An investor is planning to acquire an operating (up and running) shopping mall by paying a total of 10.000 USD (Loan+Equity) upfront. The loans which will be used for the purchase of the mentioned asset are as follows: Loan 1: USD 2.000 Bullet payment 10 years Interest rate 5% pa Loan 2: USD 3.000 Linear Amortizing 10 years 4% pa Loan 3: USD 1.000 5 years grace then linear amortizing interst rate 6% The return expactation of the share holders on the equity is 10% The E/D ratio is 40/60 Two restorations will be required in the 3rd and the 7th years. USD 500 and USD 400 will be needed for these constructions respectively and will be financed by equity only. The gross revenue of the mall is expected to be USD 800 in year 1 and expected to increase by 10% every year. The operational cost is 15%of the gross revenue. The terminal value is expected to be USD 7.000. a) What is WACC? Question 1 (40%) An investor is planning to acquire an operating (up and running) shopping mall by paying a total of 10.000 USD (Loan+Equity) upfront. The loans which will be used for the purchase of the mentioned asset are as follows: Loan 1: USD 2.000 Bullet payment 10 years Interest rate 5% pa Loan 2: USD 3.000 Linear Amortizing 10 years 4% pa Loan 3: USD 1.000 5 years grace then linear amortizing interst rate 6% The return expactation of the share holders on the equity is 10% The E/D ratio is 40/60 Two restorations will be required in the 3rd and the 7th years. USD 500 and USD 400 will be needed for these constructions respectively and will be financed by equity only. The gross revenue of the mall is expected to be USD 800 in year 1 and expected to increase by 10% every year. The operational cost is 15%of the gross revenue. The terminal value is expected to be USD 7.000. a) What is WACC