Ahmed_7793868

What are some of the major differences between loans for residential and commercial real estate? What types of risk does the LENDER face in making commercial real estate loans?  What potential benefits does the lender receive? What types of risk does the BORROWER (or OWNER) face when taking a commercial real estate loan?  What is the potential benefit? What is meant by positive financial leverage?  What about negative financial leverage? What drives the spread between 10-year commercial mortgage rates and the 10-year Treasury yield seen in Exhibit 16-2?

Option 1: Merit could approach JPMorgan Chas, a bank that had served Merit well for many years with seasonal credit lines as well as medium-te loans. Lehn believed that JPMorgan was unlikely to make a $4 billion loan to Merit on its own, but it could probably gather a group of banks together to make a loan of this magnitude. However, the banks would undoubtedly demand that Merit limit further borrowing and provide JPMorgan with periodic financial disclosures so that they could monitor Merit's financial condition as it expanded its operations.  Option 2: Merit could convert to pubic ownership, issuin stock to the public in the primary market. With Merit's excellent financial performance in recent years, Sara thought that its stock could command a high price in the market and that many investors would want to participate in any stock offering that Merit conducted.  Required: •Pros and cons of option 1 and 2 •Which option do you think Sara should recommend to the board and why?

12 Please type the answer by computer, so i can see it clearly, thank you!!! Explain the tradeoff between liquidity and reinvestment risks of lending a fixed-rate mortgage loan. (please more details)

Question 4 of 16: You have worked on your balance sheet to figure out how to finance an expansion plan. Which of the following would be the most realistic plug figure to use? Select an answer: loans payable paid-in capital liabilities investments Drouioun

TRY TO DISCOVER! Five Keys of Loan Applications (Williams, Mark, 2019) What do you think are banks, lending institution and financing companies look for when reviewing a loan application of prospective client borrower? The most fundamental characteristics most prospective lenders will concentrate on include: 1. Credit history 2. Cash flow history and projections for the business 3. Collateral available to secure the loan 4. Character 5. Myriad pieces of loan documentation that includes business and personal financial statements, income tax returns, a business plan and that essentially sums up and provides evidence for the first four items listed.

Using the findings, provide a brief summary about the financial status of each of the companies and provide a recommendation for the investment choice.

4.-Among the following options are the main characteristics (purpose of the credit, term, interest collection and guarantees) of the Direct Loan. Choose the 4 correct answers. A) To finance the purchase of machinery B) Long term C) With real guarantees. D) With interest charged at maturity E) 30, 60, 90 days F) With interest collected in advance G) To finance working capital H) Without guarantees   (is a classroom exercise)

5. Sources of short-term financing Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Sources of short-term funds include banks, suppliers, securities firms, and insurance companies. The obligations are in the form of bank loans, trade credit, commercial paper, secured loans, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers will consider the costs of the various sources of financing as part of a cash management strategy. The following statement refers to a source of short-term credit. Select the best term to complete the sentence. as a source of financing is restricted to large firms with exceptionally good credit. The use of Newell Enterprises is a very large manufacturing company. Newell's financial managers use many sources of financing for the company's annual borrowings, which exceed $100 million. Newell's credit rating is excellent. At the moment, the…

Snowflake Manufacturing [SM] has recently come to the bank you work for looking for a $280,000 long-term loan. The following data was submitted with SM's loan application: 2020 $475,200 155,400 175,200 408,600 103,500 13,200 34,200 56,100 64,200 2019 $316,500 120,000 2021 $820,800 Current assets.. Current liabilities. Non-current liabilities. Shareholders' equity.. Operating income... Interest expense... Income tax expense.. Net income... 414,600 60,800 303,700 168,900 7,200 65,400 96,300 106,300 300,000 490,200 208,500 28,500 72,000 108,000 115,000 Operating cash flow... The loan committee has asked you to analyze the data using at least three relevant financial ratios and complete a brief trend analysis. They would also like you to briefly discuss any limitations that might exist when completing this type of analysis and what data dashboards can do to help this. Finally, they have asked that your report also contain a recommendation about whether SM's loan request should be approved.…

Using the findings provide a brief summary about the financial status of each of the companies and provide a recommendation for the investment choice.

Please provide Handwritten answer

Item 9 of 25 Which of the following financial instruments generally provides the largest source of short-term financing for small firms? Select the correct response: mortgage bonds installment loans trade credits commercial paper

You will discuss credit from the lenders point of view. What factors do lenders consider when making new real estate loans? When banks make loans they are taking a risk based on several factors including creditworthiness. You will discuss how banks determine the creditworthiness of borrowers. Topic: Creditworthiness Respond to the following questions: . How does the bank determine if a borrower is credit worthy? . Does this analysis guarantee that the borrower will be able to pay off the loan as agreed? • What happens if their credit scores are below 500? What alternatives would someone with no credit history have? .

CREDIT RISK AND LOAN PRICING “When you package your home loan and bank account, you could enjoy multiple benefits including interest rate discounts and savings on a range of great products.” (i)   Does the statement above suggest banks should adopt user pays pricing or bundled product pricing and why? (ii)  Which group of customers will be most suited to the pricing method that you have identified in part (i) and why?

1. Explain how a firm that expects to need funds in the upcoming year might make sure the needed funds are available. 2. How does the uncertain nature of a firms sales  due to Covid-19 influence its decision regarding the amount of short-term  credit to use in its financing strategy? 3.  What kinds of firms use commercial paper? Could the grocery shop in neighborhood borrow using this kind of credit? 4.  From the standpoint of a borrower, is long-term or short-term credit riskier? Explain. 5. From the standpoint of an investor, is equity or debt riskier? Explain. 6. Give a report(one paragraph) of any company (either local or international) that using venture capital as a source of financing.

Which of the following statements are generally true for euromarket loans?     They are usually large multimillion dollar loans.     They are made to large corporations, financial institutions, governments and government agencies.     Borrowers for euromarket loans have very high final reputations.

4.-Among the following options are the main characteristics (purpose of the credit, term, interest collection and guarantees) of the Direct Loan. Choose the 4 correct answers. A) To finance the purchase of machinery B) Long term C) With real guarantees. D) With interest charged at maturity E) 30, 60, 90 days F) With interest collected in advance G) To finance working capital H) Without guarantees

Please explain your reasoning. I'm having a hard time understanding the work. Thanks;)