A developer puts in 5% equity and a fund puts in 95% of the equity for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A developer puts in 5% equity and a fund puts in 95% of the equity for a development deal. The pref rate is 10%, the promote is 20% to the developer and the 80% to "the money" and there are no fees. The acquisition and development costs of a deal (occurring at time 0) are $100. At the end of the year, the project is sold for $110. Which statement is true? (Circle the best answer.) A. The developer will have a higher IRR B. The fund and the developer will have the same IRR C. The fund and developer will have unequal IRRS, but without more information it is not possible to tell who will have a higher IRR D. None of the above E. The fund will have a higher IRR A developer puts in 5% equity and a fund puts in 95% of the equity for a development deal. The pref rate is 10%, the promote is 20% to the developer and the 80% to "the money" and there are no fees. The acquisition and development costs of a deal (occurring at time 0) are $100. At the end of the year, the project is sold for $110. Which statement is true? (Circle the best answer.) A. The developer will have a higher IRR B. The fund and the developer will have the same IRR C. The fund and developer will have unequal IRRS, but without more information it is not possible to tell who will have a higher IRR D. None of the above E. The fund will have a higher IRR
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Economist Charles Kenny of the Center for Global Development has argued: The process technologies-institutions like laws and inventory management systems-that appear central to raising incomes per...
-
The effects of developer strength (factor A) and development time (factor B) on the density of photographic plate film were being studied. Two strengths and two development times were used, and four...
-
The effects of developer strength (factor A) and development time (factor B) on the density of photographic plate film were being studied. Two strengths and two development times were used, and four...
-
Given that the notion of HRM is seen in some countries to be more advanced than the idea of personnel management, why might the latter continue to be the preferred terminology in most of Europe?
-
The analytical approaches of science are suitable for answering many questions. Are there some questions that science cannot answer? Why or why not?
-
We consider automobile injury claims data using data from the Insurance Research Council (IRC), a division of the American Institute for Chartered Property Casualty Underwriters and the Insurance...
-
The financial statements for the business of Autocare are shown below. Required (a) Prepare the statement of cash flows for Autocare for the year ended 30 June 2025, using the direct method. (b)...
-
Use Hesss law to calculate the standard heat of the water-gas shift reaction CO (g) + H 2 O (v) CO 2 (g) + H 2 (g) from each of the two sets of data given here. (a) CO (g) + H 2 O (l) CO 2 (g) + H...
-
1. Create database named 'Watch'. Create a table named 'Watch' with the data fields as stated below in the database. Watch ID (Primary Key) Model Kind of watch glass Water resistance Strap Validation...
-
Richardson Ski Racing (RSR) sells equipment needed for downhill ski racing. One of RSRs products is fencing used on downhill courses. The fence product comes in 150-foot rolls and sells for $215 per...
-
IE QS 23-11 (Algo): Product contribution margin analysis LO P3 Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2 machine...
-
The distance of the object is 30 cm, the image distance is 60 cm. What is the focal length of this converging lens? A. 60 cm B. 90 cm C. 20 cm
-
A cantilevered beam of length 3 m has a point load of ( 2 * 1 0 0 ) N suspended from the free end and a second point load of ( 2 * 1 0 0 ) N suspended from the mid - point. Find the resultant force...
-
You wake up in a strange room, and you drop a ball from a height of 1 . 9 7 m , and observe that it hits the floor 0 . 4 4 4 s after you drop it . In this case you suspect you are in deep space, far...
-
Two parallel plates are 4 2 cm apart and have a potential difference of ( 8 8 * 1 0 0 ) V between them. Find the field strength and calculate the work needed to move a proton against the field from...
-
Radiation emitted from microwave oven and mobile telephony 1 . can not interact with water molecules in the cells to produce free radicals 2 . interact with the human body in the same way like X -...
-
Cylinder Challenge Drag the points to create two different cylinders with the same volume. What is the volume of one cylinder?
-
Give the products of the following reaction, where T is tritium: dioldehydrase Ad- CH CH3C-COH CoIII) coenzyme B12
-
Evaluate the following statement: "Policies to redistribute income are desperately needed in the United States. Without such policies, the roughly 15 percent of the population that is currently poor...
-
Suppose consumers pay less than the true cost of medical services because a third party, such as an insurance company or the government, pays most of the bill. In the following graph, D1 represents...
-
What is a prisoner's dilemma game? Is the outcome of the game likely to be different in a repeated game? Briefly explain.
-
A mixture of benzene and monochlorobenzene is to be separated into almost pure products by distillation. Determine an appropriate operating pressure at the top of the tower.
-
The feed to a distillation tower consists of \(14.3 \mathrm{kmol} / \mathrm{hr}\) of methanol, \(105.3 \mathrm{kmol} / \mathrm{hr}\) of toluene, \(136.2 \mathrm{kmol} / \mathrm{hr}\) of ethylbenzene,...
-
In a reboiled absorber, operating as a deethanizer at 400 psia to separate a light hydrocarbon feed, conditions at the bottom tray are: Liquid Phase Molar flow = 1, \(366 \mathrm{lbmol} /...
Study smarter with the SolutionInn App