Essay
Lisa is considering investing $25,000 in a limited partnership which is raising additional capital.According to the prospectus,for the past 10-year period the average earnings have been 15% and for the past 5-year period the average earnings have been 8%.Lisa is in the 33% tax bracket.
a. List some factors Lisa should consider in making a decision on the potential investment.
b. Assuming the partnership finances its activities with equity rather than debt, what is the maximum cash flow benefit Lisa can receive if the partnership generates losses?
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a.Above all,the investment should make e...View Answer
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