Assume Cambridge Ventures raises $10,000,000 for a private equity fund with a one-year life. The fund has
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Assume Cambridge Ventures raises $10,000,000 for a private equity fund with a one-year life. The fund has a hurdle rate of 6 percent, above which it earns a carried interest of 20 percent. If Cambridge generates a return of 18 percent, what is the firm’s carried interest for the year?
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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