Which of the following are the main benefits to originators in the context of asset-based securitization?
(i) Securitization improves returns on capital.
(ii) Securitization lowers the borrowing costs.
(iii) Securitization releases additional capital for expansion.
(iv) Securitization improves asset or liability.
(v) Securitization improves credit risk management.
A. (i), (ii) and (iii)
B. (i), (ii) and (iv)
C. (i), (ii), (iii) and (iv)
D. All of the above
Answer: Option D
This Question Belongs to Commerce >> Business Finance
The appropriate ratio for indicating liquidity crisis is
A. Operating ratio
B. Sales turnover ratio
C. Current ratio
D. Acid test ratio
A. Net present value method
B. Internal rate of return method
C. Profitablity index method
D. None of the above
A. a-4, b-3, c-1, d-2
B. a-3, b-4, c-1, d-2
C. a-2, b-3, c-1, d-4
D. a-3, b-2, c-4, d-1
Which one of the following assumptions is not included in the James E. Walter Valuation model?
A. All financing by retained earnings only
B. No change in the key variables such as EPS and DPS
C. The firm has finite life
D. All earnings are either distributed as dividends or invested internally immediately
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