4. (20 points) A General Partner catch-up provision can eliminate negative consequences of pure preferred return carve out for Limited partners even when the returns are increased. Carry (1) Preferred return is set at 8% as to GP % the 100% of profit is allocated to the GPs and LPs. (2) Catch-up provision is set up until the cumulative return to the GPs reach to the 20% of profit. (3) All remaining profits are allocated ?% 80 % to the LPs and 20% to the GPs 8% 10% Total Return What would be the compensation for the GPs and the LPs, when the investment return turns out to be 6%, 9%, and 12% respectively?

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.