Loan repayments - Study guides, Class notes & Summaries

HECM Exam questions and correct answers A reverse mortgage is... - ANSWERS a loan against the value of a home that provides cash advances to a borrower, requiring no repayment until a future time. A reverse mortgage is different from a home equity loan because - ANSWERS You do not have to make monthly repayments on a reverse mortgage A reverse mortgage must be repaid - ANSWERS When the last eligible borrower dies, sells, or permanently moves away The purpose of a reverse mortgage is mo...

All of the following types of debt are typically "floating-rate" instruments used to finance an LBO EXCEPT: a. Subordinated Notes b. Term Loan A c. Term Loan B d. Revolver e. None of the above -ANSWER Explanation: The correct answer choice is A. All of the answer choices listed above with the exception of A are floating-rate debt instruments, meaning that its interest rate is not fixed (e.g. 8% each year until maturity) but rather tied to something like LIBOR (e.g. LIBOR + 3%)...

LBO Modelling Exam Questions With 100% Correct Answers What is the biggest difference between an LBO and an M&A? - answerUnlike an M&A, we're not assuming the PE firm will keep the company long term What makes a good LBO candidate? - answer-opportunity to cut costs -stable cash flows -good base of assets -undervalued/low-risk Walk me through a basic LBO model. - answer1. Make assumptions about the Purchase Price and how much debt to use 2. Create a Financial Sources & Uses section 3....

LBO Modelling Exam Questions With 100% Correct Answers What is the biggest difference between an LBO and an M&A? - answerUnlike an M&A, we're not assuming the PE firm will keep the company long term What makes a good LBO candidate? - answer-opportunity to cut costs -stable cash flows -good base of assets -undervalued/low-risk Walk me through a basic LBO model. - answer1. Make assumptions about the Purchase Price and how much debt to use 2. Create a Financial Sources & Uses section 3....

LBO Modeling / LBO Modelling Exam from Wall Street Prep 2024 PASS A+ What do LBO FCF's tell us? - ANSWER-Tells you how much cash is available to repay *debt principal* each year after already paying for normal expenses and debt interest Can a PE firm earn a solid return if it buys a company for $1 billion and sells it for $1 billion 5 years? - ANSWER-Yes, if it uses a certain amount of debt to purchase the company- if they raise $500m, and use $500 cash, the company's FCF's are ...

BTEC Unit 2 Finance Exam Questions And Answers (Verified And Updated) Start up Cost - answerThe expenses a new business must pay before it can begin to produce and sell goods Operating Cost - answerThose costs involved in the ordinary day-to-day running of the business. Direct Cost - answerCosts that are directly linked to the production, such as raw materials or labour. Indirect Cost - answerCosts which cannot be directly related to a particular product. Often known as overheads. Fixe...

LBO Modelling Exam Questions With 100% Correct Answers What is the biggest difference between an LBO and an M&A? - answerUnlike an M&A, we're not assuming the PE firm will keep the company long term What makes a good LBO candidate? - answer-opportunity to cut costs -stable cash flows -good base of assets -undervalued/low-risk Walk me through a basic LBO model. - answer1. Make assumptions about the Purchase Price and how much debt to use 2. Create a Financial Sources & Uses section 3....

BTEC Unit 2 Finance Exam Questions And Answers (Verified And Updated) Start up Cost - answerThe expenses a new business must pay before it can begin to produce and sell goods Operating Cost - answerThose costs involved in the ordinary day-to-day running of the business. Direct Cost - answerCosts that are directly linked to the production, such as raw materials or labour. Indirect Cost - answerCosts which cannot be directly related to a particular product. Often known as overheads. Fixe...

BTEC Unit 2 Finance Exam Questions And Answers (Verified And Updated) Start up Cost - answerThe expenses a new business must pay before it can begin to produce and sell goods Operating Cost - answerThose costs involved in the ordinary day-to-day running of the business. Direct Cost - answerCosts that are directly linked to the production, such as raw materials or labour. Indirect Cost - answerCosts which cannot be directly related to a particular product. Often known as overheads. Fixe...

QUESTION 1 On December 31, 2016, JJB, a private equity fund, purchased Geozone, a company with $882.7 million in last twelve months (LTM) EBITDA and an 8.0x multiple. EBITDA will expand at an annual rate of 8% during the following S years. Geozone owed $50.0 million and had $20.0 million in cash at the time of the acquisition. Debt and cash balances remained steady throughout the next five years. What is the equity value at exit if the sale occurs on December 31, 2021 at an 8x multiple? 3,...