Question 10.5 pts

A $10 million real estate project has a 60% LTV loan. The developer will contribute 10% of the total equity and the investor group will provide the remainder. What is the investor groups equity contribution to the deal?

Group of answer choices

$3,600,000

$600,000

$400,000

$5,400,000

Flag question: Question 2Question 20.5 pts

A $10 million real estate project has a 60% LTV loan. The developer will contribute 10% of the total equity and the investor group will provide the remainder. What is the developers equity contribution to the deal?

Group of answer choices

$5,400,000

$600,000

$3,600,000

$400,000

Flag question: Question 3Question 30.5 pts

A $10 million real estate project has a 60% LTV loan. The developer will contribute 10% of the total equity and the investor group will provide the remainder. The investor group has an 8% preferred return and the developer has a 6% preferred return. What is the investor groups preferred return (in dollars)?

Group of answer choices

$20,000

$24,000

$200,000

$288,000

Flag question: Question 4Question 40.5 pts

A $10 million real estate project has a 60% LTV loan. The developer will contribute 10% of the total equity and the investor group will provide the remainder. The investor group has an 8% preferred return and the developer has a 6% preferred return. What is the developers preferred return (in dollars)?

Group of answer choices

$24,000

$200,000

$20,000

$288,000

Flag question: Question 5Question 50.5 pts

A $10 million real estate project has a 60% LTV loan. The developer will contribute 10% of the total equity and the investor group will provide the remaining required equity. The investor group has an 8% preferred return and the developer has a 6% preferred return. Under circumstances where there is a positive cash flow, will the developer or the investor group recognize a higher preferred return in dollar terms?

Group of answer choices

Not enough information is provided.

The developer.

The investor group.

They will split it 50/50.