Question
The equity is owned by LP investors and MP in a ratio of 5 to 1. The total equity is $120. The LP investor demands
The equity is owned by LP investors and MP in a ratio of 5 to 1. The total equity is $120. The LP investor demands 10% preferred return. Once the LP is paid, the MP requires a 10% catch-up return. All remaining cash flows are split 70 LP/30 MP. The total cash flow available to equity for 2019 is $19.14. What is the LP's total cash received in 2019 (do not put a $ sign in the answer)?
The equity is owned by LP investors and MP in a ratio of 5 to 1. The total equity is $120. The LP investor demands 10% preferred return. Once the LP is paid, the MP requires a 10% catch-up return. All remaining cash flows are split 70 LP/30 MP. When the LP return is 15% what will the MP's return be?
The equity is owned by LP investors and MP in a ratio of 5 to 1. The total invested equity is $120. The outstanding mortgage balance at the end of 2019 is $240. The property is refinanced with $300 take out a loan at the end of 2019. The rules established for sales proceeds are, first pay the mortgage off, next return capital to equity partners and finally split all remaining proceeds 70 LP/30 MP. How much cash flow will the MP get from the refinancing transaction (do not put the $ sign in the answer)?
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