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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Hurst Company sells hand-sewn shirts for $40 per shirt. It incurs monthly fixed costs of $7,000. The contribution margin ratio is calculated to be 50%. What is the breakeven point in units? (Round your answer up to the nearest whole unit.)
A) 175 units B) 3,500 units C) 80 units D) 350 units
The following are examples of advertising goals, except:
A) building brand image B) defending against lawsuits C) to inform D) to persuade