question archive 1) Based on Wildcat Capital Investors case study: Evaluate the benchmark assumptions below
1) Based on Wildcat Capital Investors case study: Evaluate the benchmark assumptions below
Subject:AccountingPrice: Bought3
1) Based on Wildcat Capital Investors case study:
Evaluate the benchmark assumptions below. Agree/disagree
(1). Exit Cap rate
(2). Renewal probability
(3). Rental rates and growth
(4). Operating Expenses
(5). Capital Expenditures
(6). Commissions
(7). Credit Losses
(8). Vacancy
(9). Financing Terms (debt & equity)
(10). Hold period
2. What do you think is the fair market price for Financial Commons? Is the fair market price, $10,400,000 reasonable?
3. Is the investors' target return of 20% and Wildcat's target return of 50% are
reasonable?
4. what additional information would you seek before investing as an outside investor?
What kind of due diligence should be done on the investment property(Financial Commons)?
types of due diligence would make you more comfortable that Wildcat could successfully execute
the stated business plan on this particular property?
