Tranches - Study guides, Class notes & Summaries

LBO Model – Advanced Exam Questions and Answers Tell me about all the different kinds of debt you could use in an LBO and the differences between everything. - ANSWER ️️ See figure on p155 How would an asset write-up or write-down affect an LBO model? / Walk me through how you adjust the Balance Sheet in an LBO model. - ANSWER ️️ All of this is very similar to what you would see in a merger model - you calculate Goodwill, Other Intangibles, and the rest of the write-ups in the sa...

1. What's the true purchase price in a leveraged buyout? Just as in a merger model, you always start with the Equity Purchase Price - the cost of acquiring all the company's common shares. Then, depending on the treatment of Cash, Debt, Transaction Fees, and Equity Rollovers, the "true price" may be different, which is why you create a Sources & Uses schedule. For example, if existing Debt is "assumed" (kept in placed or replaced with new Debt that's the same), it won't affect the purc...

RSK 4802 EXAM PACK 2022 JANUARY /FEBRUARY 2016 QUESTION1.1 ai) Risk management is an important process because it empowers a business with the necessary tools so that it can adequately identify and deal with potential risks. Once a risk has been identified, it is then easy to mitigate it. In addition, risk management provides a business with a basis upon which it can undertake sound decision-making. -For a business, assessment and management of risks is the best way to prepare for even...

Real Estate Finance Chapter 4 QuizAn investment is said to be liquid when: - correct answer it can be instantly sold. Private mortgage insurance is required on all loans that exceed what percentage of the value of a property? - correct answer 80%. FNMA and FHLMC are: - correct answer government-chartered private lenders. Participants who make up the secondary mortgage market: - correct answer raise the necessary funds to purchase the mortgage. When an investor has an "undivided inte...

LBO Model – Advanced Exam Questions and Answers Tell me about all the different kinds of debt you could use in an LBO and the differences between everything. - ANSWER ️️ See figure on p155 How would an asset write-up or write-down affect an LBO model? / Walk me through how you adjust the Balance Sheet in an LBO model. - ANSWER ️️ All of this is very similar to what you would see in a merger model - you calculate Goodwill, Other Intangibles, and the rest of the write-ups in the sa...

CMBS FINAL COPY STUDY GUIDE questions and answers 100% verified. Assuming a perfectly efficient debt market, what would be the forward rate during year 6, given the following current spot rates? Year: 1 2 3 4 5 6 Spot rate: .08 .085 .09 .095 .10 .105 - correct answers.((1+r6)^6/(1+r5)^5) - 1 2. Explain why, in the absence of transactions costs that spot interest rates should be a geometric average of the imbedded forward interest rates. Explain why, in an efficient...

What are the categories of Real assets ? Land, Infrastructure, and IntangibleReal Assets Real Estate Fixed-Income Investments Real Estate Equity Investments • Binomial option pricing model ? • Binomial option pricing model: can be used to value undeveloped land as a call option. The components of the call option are: strike price, time to expiration, underlying asset, option payoff, exercising the option, and option moneyness. • Investable infrastructure has seven key cha...

LEVERAGE BUYOUT (WALL STREET PREP) QUESTIONS AND CORRECT VERIFIED NSWERS 2023/2024 GRADED A+. 2 / 22 1. What is a leveraged buyout (LBO)?: In a leveraged buyout, a private equity firm(often called the financial sponsor) acquires a company with most of the purchase price being funded through the use of various debt instrumentssuch asloans, bonds.The financial sponsor will secure the financing package ahead of the closing of thetransaction and then contribute the remaining amount. Once th...

Science - Correct Answer An organized way of gathering and analyzing evidence about the natural world. scientific theory/method - Correct Answer structure of ideas that explain wide range of observations. supported by abudance evidence, rigorously tested, parimonious Hypothesis - Correct Answer a supposition or proposed explanation made on the basis of limited evidence as a starting point for futher investigation. bilogical - Correct Answer marine life, plants, and animals, how ...

Primary economic role of structuring - Answer Structured securities complete the market - structured to meet all different needs & helps investors prepare for all states of the world MBS - Answer Mortgage-backed securities - security secured by pool of mortgages (mortgages are the collateral) RMBS - Agency RMBS - Answer Residential MBS - low credit risk: backed by the US government - has prepayment risk: borrower' s right to repay mortgage early a key risk Contraction risk - Ans...