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?

answer; experimentation;

answerreactive approach;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.