Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mrs. Peter is the owner of Cinemax Universal, a holding company for a chain of 12 movie theaters and a small TV station in New

Mrs. Peter is the owner of Cinemax Universal, a holding company for a chain of 12 movie theaters and a small TV station in New Orleans. Although the company is privately owned, Mrs. Peters and Cinemax Universal have been a long-standing client of Buena Vista Broadcasting, with the relationship dating back to 1990. Mrs. Pewters has recently approached Buena Vista regarding her expansion efforts to purchase a 23-store commercial office building that is expected to be fully occupied (10 leases are contracted with tenants for up to five years with provisions for renewal and step-up rental income). Mrs. Peters plans to operate one of the stores as both a distributor and retailer for children's accessories, and wants to gain a direct retail license from Disney as well s a $10MM line of credit. Rent rolls on the building are expected to yield $180,000 per month. Mrs. Peters also projects that distribution revenues can yield from $75,000 to $100,000 per month and retail sales of $30,000-$50,000 per month. Mrs. Peters has asked for the $10MM line of credit s part of her working capital needs and says she would be willing to pledge an assignment of rental proceeds as collateral.


Create a Risk Evaluation for the facility request to use in evaluating the credit-specific fundamentals of the respective credit request.

Step by Step Solution

3.29 Rating (149 Votes )

There are 3 Steps involved in it

Step: 1

Here is a draft risk evaluation for the credit request Risk Evaluation for Mrs PetersCinemax Univers... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Leadership Enhancing the Lessons of Experience

Authors: Richard Hughes, Robert Ginnett, Gordon Curphy

7th edition

78112656, 978-0078112652

More Books

Students also viewed these Finance questions

Question

How is the demand side managed?

Answered: 1 week ago

Question

Where is the position?

Answered: 1 week ago