Structured Finance


Structured Finance

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Structured Finance

Week X Case Study Assignment

Title That Describes the Intent of Assignment

 

Background

The purpose of this template is to prove guidance on both formatting and progression of ideas when drafting assignments.

 

We begin with the background section.  In this section, please describe:

The asset under review.  This includes type, age, class, location (metropolitan statistical area and submarket/neighborhood).  Also, include key metrics that are useful to consider when your reader is reintroduced to the deal and your new analysis included as part of this memo.

 

As this is a rolling assignment based on reading for each week, you will update the background section weekly throughout this course.  Your background should be specific to the new information provided each week.  For example, Week 3 asks students to apply debt to their scenario analysis.  Use this section to inform the reader on any updates to negotiations and how this update impacted your analysis throughout.  In the case of Week 3, you will want to share that the seller has partnered with a lender and also provide the terms of the debt offered.  Week 4 and beyond will have unique updates to provide.

 

Images can help here as you deem appropriate and as needed as the deal progresses.  Images may include maps, pictures of the property and surrounding location so as to provide context for your reader.  The formatting of your assignments may look something like what is presented herein. However, this formatting template is meant to act as a guide when completing your work for submission at Georgetown, and in your career.   Find opportunities to be creative in a manner that sets up apart from your peers.

 

Our weekly case study assignments will ask you to perform specific analysis so as to arrive at a conclusion for recommendation.  Our expectation is that you use assignments as opportunities to provide more than a summary of deal metrics.  We want to know:

  • What is the analysis telling you? What are your resulting recommendations?
  • It is equally as important to tell us about your perspectives on the deal; what you think and why.

 

Leverage Analysis (title will change with each assignment you submit)

In Week 2, we asked you to perform an unleveraged analysis for three asset class scenarios (Trophy, Class A, Class B).  Week 3 asks to (i) review scenarios; (ii) apply the debt terms that are described in Blackboard to each scenario (iii) determine the type of investor that would be appropriate; (iv) identify the proposed returns that the project would earn.  Week 4 will have novelty as will subsequent assignments.

 

 

 

 

 

Leveraged Trophy Analysis (title will also change with each assignment)

Begin your analysis by providing a description of the respective development scenario and follow with a table that summarizes your findings.  Best to have a simple, precise and clear narrative about what the reader is looking at in the table that follows your description.  Also, helps to briefly explain your understanding of the assumptions that drive this analysis.

 

You will want to provide sufficient narrative such that your instructor(s) can easily identify where you may have made an error conceptually and help you address it immediately.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that allow for a full understanding of your findings in the table above?

 

Leveraged Class A Analysis

Replicate format above based on analysis performed for Class A scenario.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that allow for a full understanding of your findings in the table above?

 

 

 

 

 

 

 

 

 

 

Leveraged Class B Analysis

Replicate format above based on analysis performed for Class B scenario.

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that allow for a full understanding of your findings in the table above?

 

Sensitivity Analysis

Continuing with week 3 as an example, students are also tasked with presenting sensitivity analysis associated with this project.  Intent of these sensitivities is to determine a range of anticipated return to investors.  We have asked you to run the following sensitives below:

 

Rent Sensitivity Analysis

In support of your rent sensitivity analysis, your table will need to include a range of rental rates that are less than and greater than the projected rate that you concluded to earlier in this course (a range of at least 10% both positively and negatively).  Projected cash flow through to disposition will change in conjunction with corresponding change in rent, as will disposition values, net proceeds, and ultimately IRR to the proposed investor.  Ensure that your table has as sufficient range of rents to adequately capture the various scenarios we have asked you to run previously (Trophy rents; Class A rents; Class B rents).  Provide notes as necessary that offer helpful guidance to the reader regarding your assumptions and the associated risks therein.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that allow for a full understanding of your findings in the table above?

 

 

 

 

Construction Cost Sensitivity

As above, construction costs will increase based on the various scenarios we have asked you to run (Trophy, Class A, Class B).  The range of construction costs will impact the level of equity that your proposed investor will need to fund.  Cash flows for each scenario will reflect rental rates per scenario type (Trophy rents…) and will ultimately impact IRR, which your table should show.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that will allow for a full understanding of your findings in the table above?

 

Disposition Cap Rate Sensitivity

As above, cap rates will be either higher or lower depending on the scenario. Buyers will pay more for better product, and less as the asset quality declines (no surprise then that Trophy will earn a lower cap rate than Class A, and Class B will earn a higher cap rate than Class A). Thus, disposition values will have a range based on range of cap rate, as will IRR.

 

  • Provide bulleted notes below the table that help guide the reader in the same format as has been included here.
  • What would be useful comments that will allow for a full understanding of your findings in the table above?

 

 

Recommendations

Take a moment to reflect on your analysis above and insights that your analysis provided that should be reinforced.  This is the ‘therefore’ section, and you are using language to motivate your firm’s leadership without also coming across as overbearing.  As an example for Week 3, it may be helpful to have a table that reflects the best option based on the sensitivities you generated.  Ultimately each week will require new insight based on leadership’s needs, so best to be flexible with your organization based on what you learned from performed analysis.

 

Our expectation is that you use assignments as opportunities to provide more than a summary of key metrics and also use as opportunity to concisely discuss impact on projected returns to investors based on new information provide each week.

 

What is the analysis telling you about risk? What are your resulting recommendations that are both realistic and can be achievable economically in the context of your investor’s requirements about return rates?  The purpose is to balance risk with your own solutions to continue deal flow and successfully create value.

 

 

***

 

To get your Assignment/Homework solutions;

Simply Click ORDER NOW and your paper details. Our support team will review the assignment(s) and assign the right expert whose specialization is same to yours to complete it within your deadline. Our Editor(s) will then review the completed paper (to ensure that it is answered accordingly) before we email you a complete paper

 

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