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eimsori [14]
3 years ago
5

Check all true statements regarding CMBS:

Business
2 answers:
Stolb23 [73]3 years ago
5 0

Answer: A and D only

Explanation:

CMBS Loan are also referred to as a Conduit Loan, this is a type of real estate loan usually commercial, which is secured by a first-position mortgage on a commercial property. These loans are usually packaged, and sold by a Conduit Lender, commercial banks, investment banks, and syndicates of banks.

Loans in a CMBS are always bigger so they are less in a CMBS deal. Sometimes it’s onlyone loan in a Single Asset (SA) CMBS deal

Prepayments are discouraged in CMBS through defeasance,prepayment penalties or yield maintenance fees.

Goshia [24]3 years ago
3 0

Answer:

a.CMBS have less exposure to prepayment risk than RMBS

d. The number of commercial mortgages in a CMBS deal are usually lower than the number of residential mortgage in a RMBS deal

Explanation:

Commercial Mortgage-Backed Securities (CMBS) as the name implies are mortgage backed securities that are secured with commercial mortgages while Residential Mortgage-Backed Securities (RMBS) are mortgage backed securities secured by residential property.

a) CMBS are based on mortgages which usually have a fixed term contract in place meaning that prepayment is less of a thing with CMBS than with RMBS so the former does indeed have a less exposure to prepayment risk than the latter.

d) This is indeed true because both packages have to look appealing to investors but can only use different amounts to reach the minimum threshold. This is because Commercial Mortgages pay more than Residential Mortgages so more RMBS have to be pulled together to form an attractive investment as opposed to CMBS. This is why the number in CMBS are usually less than that of RMBS.

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Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific eight-digit Codific
Rzqust [24]

Answer:

1. Reporting most changes in accounting principle.

FASB ACS 250-10-45-5.

Title - "Accounting changes and Error corrections - Overall - Other presentation matters - Change in Accounting principle"

2) Disclosure requirements for a change in accounting principle:

FASB ACS 250-10-50-1 :

Title - "Accounting changes and Error corrections - Overall - Disclosure - Change in accounting principle"

3) Illustration of the application of a retrospective change in the method of accounting for Inventory :

FASB ACS 250-10-55-3

Titles - "Accounting changes and Error corrections - Overall - Implementation guidance and Illustrations -Retrospective application of a change in Accounting principle."

8 0
3 years ago
which tool would the government most likely employ during a period of inflation to stabilize the economy ?
Scorpion4ik [409]

They would LOWER THE CASH RATE so the value of the dollar can hopefully go back up again

3 0
3 years ago
Pharoah Company purchased a new machine on October 1, 2019, at a cost of $138,000. The company estimated that the machine will h
andre [41]

Answer:

A. $29,000

B. $19,720

C. $69,000

$34,500

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($138,000 - $22,000) / 4 = $29,000

Unit of activity = Cost of asset - Salvage value) / Total working hours

= ($138,000 - $22,000) / 10000 = $11.6

$11.6 × 1700 = $19,720

Double declining method = Depreciation factor × net book value

Depreciation factor = 2 × (1/useful life)

2(1/4) = 0.5

0.5 × $138,000 = $69,000

Net book value = $138,000 - $69,000 = $69,000

Depreciationexpense for the second year = 0.5 × $69,000 = $34,500

I hope my answer helps you

5 0
3 years ago
The term "stuck in the middle": Group of answer choices means that the firm’s cost structure is not low enough to allow it to at
Mekhanik [1.2K]

Answer:

The correct answer is the option A: means that the firm's cost structure is not to low enough to allow it to attractively price its products and that its products are not sufficiently differentiated to create value for its target customer.

Explanation:

To begin with, the term called<em> ''stuck in the middle''</em> is known in the business world for the main reason of <em>being stuck in a situation where the costs of the firms are to high</em> to allow them to have competitive and attractive prices and and that also<em> these companies do no differentiate their product enough</em> in the way to generate value to the customer they want to reach and therefore it is said that these firms are stuck in the middle due to the fact that <u><em>they can not improve their benefits</em></u> because of their high cost structure and low differentation.  

8 0
3 years ago
Henrique Correa's bakery prepares all its cakes between 4 A.M. and 6 A.M.so they will be fresh when customers arrive. Day-old ca
masha68 [24]

Answer:

The optimal stocking level for the bakery is cakes 27.

Explanation:

Cost c = $ 7

Selling price p = $ 10

salvage value s = $ 5

Mean = 25

Standard deviation \sigma = 8

Cu = underage cost

    = p-c

    = $10 - $7

    = $3

Co = overage cost

     = c-s

     = $7 - $5

     = $2

P\leq C_{u}/(C_{u}+C_{o})

P\leq3/(3+2)

= 0.6

By using normsinv() function in excel we to find the correct critical value

The Z value for the probability 0.6 is 0.2533

The optimal stocking level is

=\mu +z\sigma

= 25 + 0.2533 *8

= 27.02

The optimal stocking level of bakery is 27.02

Therefore, The optimal stocking level for the bakery is cakes 27.

8 0
4 years ago
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