Explain whether you agree or disagree with the following statement: "A fusion CMBS deal has only one single large borrower."
What will be an ideal response?
Conduits are commercial-lending entities that are established for the sole purpose of generating collateral to securitize, and the CMBS transactions that result are called conduit deals. The rating agencies refer to conduit transactions as multi-borrower deals indicating more than one borrower. When a conduit deal contains one large property for more than $50 million and then smaller loans, it is referred to as a fusion conduit deal. Although a fusion CMBS deal contains one single large borrower, it also has other borrowers.
In the deal discussed in the text most, of the loans were originated by one large borrower (or its conduit participants) or were acquired by the one large borrower from various third-party originators. The mortgage loans originated by the one large borrower constituted about
three-quarters of the initial mortgage pool.
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Indicate whether the statement is true or false
Firms sometimes acquire assets by exchanging an asset other than cash or by issuing common stock. In these cases, acquisition cost is
a. the fair value of the asset received, only. b. the fair value of the consideration given, only. c. either the fair value of the consideration given or the fair value of the asset received, depending on which amount is lower. d. either the fair value of the consideration given or the fair value of the asset received, depending on which the firms can more reliably measure. e. either the fair value of the consideration given or the fair value of the asset received, depending on which amount is higher.
Regulations governing air pollution cover mobile and stationary sources. Those who may be subject to penalties for violations of the Clean Air Act include
a. corporate officers who knowingly violate the act. b. persons who provide information about violators but otherwise fail to act. c. private citizens who fail to sue violators. d. none of the choices.
Barrington Bears has developed the following sales forecasts for the next few months. January 500, February 600, March 720, April 800 and May 770. BB has 80 bears on hand on Dec. 31. Normal ending inventory policy is to hold 20% of next month’s sales. Each bear needs .8 yards of fabric and two pounds of stuffing. Fabric is budgeted to cost $15 per yard and stuffing $4 per pound. Direct labor is paid $18 per hour. Each bear takes 40 minutes to hand-finish. Variable overheads total $21 per direct labor hour. Fixed overheads amount to $25,000 per month. Eighty yards of fabric and 100 pounds of stuffing were in stock at year-end. Ten percent and 25% of next month’s stuffing and fabric needs respectively are planned for raw materials ending inventory each month.
How many bears must be produced in February? A. 600 B. 540 C. 624 D. 744 E. None of the above