I personally would calculate the GP tax for the scenario given by mlpfoller a little differently. I would divide the .50 by 3.50 to get a tax rate of 14.28%. I figure that the GP tax rate is simpy the percentage of cash that they take out of the total cash in the till, which would be the sum of the GP payments and the LP payments. Not that it really matters, because, as mlpfollower has pointed out, the true cost is the cost of the equity and debt.
Have to agree with mlpfollower, XTXI's, or rather XTEX's growth prospects will plunge but will gradually decrease.
Did you mean to say that "... XTEX's growth prospects will NOT plunge but will gradually decrease."? Your post said WILL plunge.
Enjoy your posts and appreciate the sharing of info.
I am not a financial type so your attention to detail is great. Enjoy geocities and mlpfollower posts as well and even though you guys don't quite see eye to eye, it's great to have a sparring partner (or two) so that everyone is kept honest. Enjoy this board.