please show step on how to aolve. the solution is provided.

The partnership agreement calls for the distribution to be 75% to Preferred Equity and 25% to the Sponsor (without any preference) until the preferred partner reaches a required returm of 8%, and then the sponsor receives any remaining funds. Assume the following distributions have been made earlier to the each of the equity partners and $350,000 is available to be distributed. 23. Give the information above, what is the expected return to the preferred equity partner once the full 350,000 has been distributed? SOLUTION: Expected return to preferred equity =8.0%