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3 years ago

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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Suppose Rocky Brands has earnings per share of $2.33 and EBITDA of $29.3 million. The firm also has 5.3 million shares outstan

posledela

Answer:

enterprise value to EBITDA.

Explanation:

The computation of the value of the stock using P/E ratio is shown below:-

Stock value = (P/E ratio × EPS) × Number of shares outstanding

= (12.9 × $2.33) × 5.3 million

= 159.3021 million

Now, the computation of the value of the stock using EBITDA multiple is shown below:-

Stock value = (EBITDA multiple × EBITDA) - Net debt

= (7.1 × $29.3 million) - $125 million

= 208.03 - $125 million

= 83.03

There is no equivalent corporate debt. It is easier to make a comparison at the operating level and thus a better measure of valuation is the enterprise value to EBITDA.

3 0

3 years ago

The Quorum Company has a prospective 6-year project that requires initial fixed assets costing $962,000, annual fixed costs of $

diamong [38]

Answer:

5375

Explanation:

Given that:

Initial Fixed assets costing = $962000

Annual fixed costs = $403400

Variable cost per unit = $123.60

Sales price per unit = $249.00

Discount rate = 14%

Tax rate = 21%

The contribution per unit = Sales price - Variable cost

= $(249.00 - 123.60)

= $125.40

The present value break-even point(BEP) is the region of sales level where the net present value (NPV) equals zero.

Assuming that the sales level = p

i.e.

NPV = PV(of inflows - of outflows)

Inflows = (p * contribution per unit - annual fixed cost)( 1- tax rate) + depreciation * tax rate

= (p * 125.4 - 403400) ( 1 - 0.21) + depreciation * tax rate

where;

depreciation = initial fixed assest cost/ lifetime of the project

= (125.4p - 403400)*0.79 + (962000/6)*0.21

= (125.4p - 403400)*0.79 + (160333.33)*0.21

= (125.4p - 403400)*0.79 + 33670

Now, the PV of the inflows =PV factor(6 years, 14%) * inflows

$= inflows * \dfrac{( 1-(1.14)^{-6})}{0.14}$

$= inflows * 3.8887$

Replacing the value for inflows, we have:

$=((125.4p - 403400)*0.79 + 33670)* 3.8887$

The PV of the outflows = Initial Fixed asset cost = $962000

∴

Equating both together using:

PV(of inflows - of outflows) = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 - 962000 = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 = 962000

(99.066p - 318686 + 33670) * 3.8887 = 962000

(99.066p - 285016) * 3.8887 = 962000

385.24p - 1108341.72 = 962000

385.24p= 962000 + 1108341.72

385.24p= 2070341.72

p = 2070341.72 / 385.24

p ≅ 5375

6 0

3 years ago

You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $33,000. You

My name is Ann [436]

Answer:

Explanation:

What 22

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3 years ago

Match each word with the phrase that best defines it

podryga [215]

Answer:

See explanation below.

Explanation:

1. Equity: the value of a property above any loans that are owed.

2. Lease: a payment in a series that is made over a long period of time installment, to buy something on credit.

3. Finance: a legal agreement to borrow money for the purchase of a home.

4. Mortgage: a legal agreement allowing a person to use a car or property for a payment.

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3 years ago

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What is the purpose of writing a topic sentence?

Mnenie [13.5K]

Answer:

The correct answer is option C. To summarize the main point of the paragraph

Explanation:

A topic sentence is the most important part of a paragraph. The main purpose of a topic sentence is to provide a concise statement that reflects the purpose of the paragraph or the information that is going to be provided in the paragraph effectively.

It is usually the first sentence of a paragraph and becomes the opening statement of a paragraph in formal writings.

I hope the answer is helpful.

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3 years ago

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