Question
You are looking at a $1M acquisition. Your bank has told you that they will lend 70% LTV @4.75% for 10 years with a 30
- You are looking at a $1M acquisition. Your bank has told you that they will lend 70% LTV @4.75% for 10 years with a 30 yr amortization. Your investors are looking for a 15% rate of return.
What is your weighted average cost of capital for doing this deal?
If you find a lender willing to let you go to 75% LTV, how does that change your cost of capital?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
