You are preparing a five-year proforma for ACME Apartment Realty Fund I. The fund has the following
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Question:
You are preparing a five-year proforma for ACME Apartment Realty Fund I. The fund has the following data; $100M in total assets with 65% debt at 6% interest only, risk-free rate of 3.5%, ownership split of 75%/25%, the preferred return of 9%, the inflation rate of 3%, and portfolio Page 6 of 10 valued at a 6.0% cap rate. What is the preferred return projected to be paid in year two of the proforma?
a. $3,150,000
b. $1,050,000
c. $2,280,000
d. $2,100,000
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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