What is the rate creditors use to discount UFCFs to their present value in order to compute LLCR?

Q:

What is the rate creditors use to discount UFCFs to their present value in order to compute LLCR?

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What is the contract where cover ratios are included?

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Which cover ratio, if any, is a point-in-time measurement?

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Which among the following measurements capture profitability for creditors?

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Why is it advisable to calculate the IRR of shareholders on the basis of dividends instead of free cash flows for shareholders? (Select all that apply.)

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Which among the following statements is correct? (Select all that apply.)

Q:

Consider the following stream of UFCF:
y1: 57.5
y2: 58.8
y3: 61.6
y4: 88.5
y5: 89.1
Compute LLCR at year 0, for an outstanding loan of 200 that pays an annual interest rate of 10% and is repaid in 5 years.

Q:

Consider this stream of UFCF:
y1: 57.5
y2: 58.8
y3: 61.6
y4: 88.5
y5: 89.1
Indicate the year in which DSCR is maximum for an outstanding loan of 200 that pays an annual interest rate of 10% and is repaid in 5 years according to this repayment schedule:
y1: 15%
y2: 15%
y3:15%
y4: 25%
y5: 30%
which gives the following stream of principal repayments:
y1: 30
y2: 30

y3: 30

y4: 50
y5: 60
and the following stream of Interest Expenses:
y1: 20
y2: 17
y3: 14
y4: 11
y5: 6

Q:

Consider a loan of 200 that pays an annual interest rate of 10% and is repaid in 5 years according to the following repayment schedule:
y1: 10%
y2: 15%
y3: 20%
y4: 25%
y5: 30%.
The loan is made to a moderately risky project expected to generate the following stream of UFCF:
y1: 57.5
y2: 58.8
y3: 61.6
y4: 88.5
y5: 89.1
How would you rate the financial sustainability of the project from the point of view of a creditor?

Q:

Consider a loan of 200 that pays an annual interest rate of 10% and is repaid in 5 years according to the the flat repayment schedule:
y1: 20%
y2: 20%
y3: 20%
y4: 20%
y5: 20%.
The loan is made to a moderately risky project expected to generate the following stream of UFCF:
y1: 57.5
y2: 58.8
y3: 61.6
y4: 88.5
y5: 89.1
How would you rate the financial sustainability of the project from the point of view of a creditor?

Q:

Which among the following elements is/are necessary to compute DSCR? (Select all that apply.)

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Which of the following measures is NOT affected by a change in the loan repayment schedule?

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Which of the following measures is NOT affected by a change in the loan repayment schedule?

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Which among the following repayment plans is more profitable for creditors?

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Which among the following repayment plans is less risky for creditors?

Q:

Which among the following statements is correct? (Select all that apply.)

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