I. A lenders aggregate exposure is generally higher under a ________ _________ compared to a term loan. Fill in the blank. (Hint: 2 words)

II. Consider 2 borrowers: Borrower A is a term-loan heavy client, and Borrower B has only capital leases. Both have financed equally priced asset(s). Under what condition could Borrower Bs DSCR be greater than Borrower As?

A. If the lease amortization is shortened by enough to create a smaller current portion of long term lease obligation and offset the higher total loan amount caused by the 100% LTV.

B. If, after adjusting the numerator to add back lease expense, the adjusted EBITDA figure is sufficiently high to offset the 100% LTV.

C. Borrower Bs DSCR cant be greater than Borrower As under any circumstances.

D. If the lease amortization is extended by enough to create a smaller current portion of long term lease obligation and offset the higher total loan amount caused by the 100% LTV.

III. Assuming the identical cost of funds across all borrowing types, how can a capital lease be more profitable than a term loan for the lender?

A. A higher recovery rate for the lease than the term loan.

B. If slightly lower leverage and higher coverage ratios are enough to move the client further on the lenders risk scale, it may decrease the credit spread.

C. If slightly higher leverage and lower coverage ratios are enough to move the client further on the lenders risk scale, it may decrease the credit spread.

D. A higher LGD for the lease than the term loan.

IV. Under a 75% LTV term loan structure, when is the balance of funds released by the lender to the vendor?

A. After the borrowers equity contribution, before the delivery of the asset to the borrower.

B. After the borrowers equity contribution, and preferably after the asset is in the borrowers possession.

C. Before the borrowers equity contribution and the delivery of the asset.

D. Before the borrowers equity contribution, after delivery of the asset to the borrower.

Please answer to all parts I, II, III, and IV Thank you!!!