Explain the quoted statements particularly

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When a sponsor puts up equity, remuneration is in the form of a residual flow-represented by dividends. Sponsors are paid only after the rights of all other parties involved in the deal have been satisfied. The right of creditors, however, is unequivocal.

Question 1: How do you explain the quoted statements particularly when there are mezzanine debts involved in financing a project in addition to equity and debts?

Reference no: EM132603916

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