Calculate the after-tax equity reversion based
Question # 00421637
Posted By:
Updated on: 11/10/2016 10:54 PM Due on: 11/11/2016
After Tax Equity Reversion
Calculate the after-tax equity reversion based on the following:
Initial Purchase Price | $16 million |
Sales Price in 10 Years | $26 million |
Holding Period | 10 Years |
Cost of Sale | 1 percent |
Loan to Value Ratio | 70 percent |
Interest Rate | 6 percent |
Amortization Period | 25 years (assume one payment per year) |
Land Value | 20 percent of Initial Purchase Price |
Property Type | Commercial (Non-residential) |
Long Term Capital Gain Rate | 20 percent |
Recapture Tax Rate | 25 percent |
-
Rating:
/5
