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Why is the above attractive to an investor

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Reference no: EM132433982

Consider the following:

  • Purchase Price: $800,000
  • Total bank financing: 90%
  • Total institutional equity: 80%

Calculate:

  1. Total amount of bank financing
  2. Total amount of institutional equity
  3. Total amount of investor's share (remember that the total of a, b, and c need to equal the purchase price)
  4. Investor's percentage of total purchase price

Why is the above attractive to an investor? What would it allow them to do?

Reference no: EM132433982

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