What are the proceeds to the LPs

Assignment Help Financial Management
Reference no: EM131190635

Assume that Sunstorm's EIG VI (2009) fund closes with $10B in committed capital and that the entire amount is immediately called. One billion dollars is reserved for fees and the remaining $9 billion is invested in one irresistible investment. That investment is sold for a 2.8x multiple after exactly 5-years.

If there is a 5% hurdle rate for the fund, what are the proceeds to the LPs?

Reference no: EM131190635

Questions Cloud

Calculate the Gross IRR of the individual investments : Assume that Sunstorm's EIG VI (2009) fund closes with only $10B in committed capital and that it is invested 20% each year over 5 years and that EACH investment generates a 3.1x return over an exact 5-year hold period. Calculate the Gross IRR of the ..
Induced voters to limit property taxes in california : Would an alternative school finance equalization that produced increased spending for low-wealth communities using state funds be more, less, or equally likely to induce a property tax limitation in California?
Original investment cost of the remaining investments : Assume that Sunstorm's EIG VI (2009) fund closes with $12,616million in committed capital and that it is invested 20% each year over 5 years and that EACH investment generates at 2.5x return over an exact 5-year hold period. Assuming Sunstorm receive..
How social media play into the intent and the actual message : Describe how social media plays into the intent and the actual message? What made it successful (or not successful)? What ideas and opinions do you have about the product or brand after reviewing the ad?
What are the proceeds to the LPs : Assume that Sunstorm's EIG VI (2009) fund closes with $10B in committed capital and that the entire amount is immediately called. One billion dollars is reserved for fees and the remaining $9 billion is invested in one irresistible investment. That i..
What is the marginal value of road repair : What is the marginal value of road repair for each type of individual? What is the marginal cost to each type of individual?
What was the benefit to the business selling the product : Was the placement obvious? How did it tie-in to the movie? What was the benefit to the business selling the product and the movie by placing this product?
Discuss the incidence and prevalence of aids : Discuss the incidence and prevalence of AIDS, pathophysiology from an advanced practice perspective, physical assessment and examination, evidence-based treatment plan and patient education, as well as follow up and evaluation to assess the effica..
Analyze how each of different conclusions regarding topic : Analyze how each of the different conclusions regarding the topic use particular evidence to support their claims, paying particular attention to analyzing how the conclusions rely on different facts.

Reviews

Write a Review

Financial Management Questions & Answers

  Purchase of a new plastic stamping machine

FIN370 Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $110,000 and will generate net cash inflows of $17,000 per year for 9 years.

  What are some of the main musical characteristics

What are some of the main musical characteristics that can be observed in Jazz. Where do they come from? Consider instrumentation, performance practices, melodies, and other relevant techniques.

  Using capm for computing the common equity cost

What types of perks and/or benefits do you receive at your jobs. Is your state open or close shop? What are the pros and cons of using CAPM for computing the common equity cost? How can you find the weights to be used for the WACC and which are more ..

  Chase strategy-how many employees would be needed

The expected demand in October is 20,000 units, and there are 25 working days in October. The production rate is 10 units per day per employee. The initial inventory is 1,000 units, and the ending inventory target is 5,000 units. Following a chase st..

  What is the beta of the portfolio of three stocks

Given the following information about Stock A: Estimate the price of stock A at the end of the year. What is the beta of the portfolio of three stocks?

  What is the net cash flow from the sale of this machine

You purchased a CNC lathe 5 years ago for $150,000. The IRS categorizes this machine as 7 year property. You need to replace the machine with a more efficient model and have just sold the lathe for $50,000. Your firm is in the 25% marginal tax bracke..

  Generate a cash based income statement

Suppose that you generate a cash based income statement and determine that CFO equals 75 percent of cash dividends paid and payments on current maturities of long term debt. What is the significance of this in terms of the firm's cash flow position?

  Investment account at the end of every month

Suppose you deposit $40 into an investment account at the end of every month for four years. If the interest rate on the account is 7.32% compounded monthly, how much will be in the account at the end of four years?

  Republican party economic platform during the civil war era

What were the key elements of the Republican Party economic platform during the Civil War era? Give examples of legislation passed by Republicans during the Civil War and Reconstruction that had economic implications. Why were they important?

  What variables must be known in applying the capitalization

What variables must be known (or estimated) in applying the capitalization of cash flow method of valuation to a physical or financial asset?

  How much would GDP increase

Suppose Apple produces 10,000 MacBooks in December of 2013 with an estimated market value of 2,000 each. None of those are sold until sometime in the spring of 2014. How much would GDP increase in 2014?

  Appropriate discount rate for projects of this risk level

Wheel has two other possible investment opportunities, which are mutually exclusive, and independent of Investment A above. Both investments will cost $120,000 and have a life of 6 years. Assuming that the appropriate discount rate for projects of th..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd