Number of Loans Principal Rate Maturity 50 100,000 4% 360
100 250,000 4.25% 180
50 300,000 5% 360

Now imagine that these loans whose origination values are listed above are seasoned for 6 months before creating a MPT. What is the starting pool balance? Assume that all loans are fixed rate, fully amortizing and make monthly payments. Additionally, assume that in the time period between origination and securitization every borrower makes exactly their scheduled payment (no prepayments, no defaults). Express your answer in dollars rounded to the nearest cent, if necessary. (Hint: calculate balance outstanding on each segment of the pool after making 6 payments.)

Need true or false 1 2 3 4 5 6 7 8

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?