Is the arrangement identical

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Reference no: EM131235034

In the example, the building was worth $76,364, the mortgage was worth $25,000, and the equity was worth $51,364. The mortgage thus

financed 32.74% of the cost of the building, and the equity financed $67.26%.

Is the arrangement identical to one in which two partners purchase the building together-one puts in $25,000 and owns 32.74%, and the other puts in $51,364 and owns 67.26%?

Reference no: EM131235034

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