Wealth-Forum e-zine

Test your understanding of this topic

Q1.

Which of the following is not a characteristic of Mezzanine finance?

a. Temporary in nature

b. Requires lot of due diligence by lender

c. May require no or very little collateral

d. None of the above

Q2.

Which of the following is a motivation for obtaining Mezzanine finance?

a. Expansion

b. Corporate Restructuring

c. Leveraged Buyout

d. All of the above

Q3.

Mezzanine lenders usually seek returns in the range of________

a. 5-15%

b. 20-30%

c. 35-45%

d. None of the above

Q4.

Mezzanine finance is:

a. Subordinate to equity

b. Superior to senior debt

c. Subordinate to venture capital finance

d. None of the above

Q5.

Which of the following factors are considered by mezzanine lenders for providing finance to companies?

a. Strong cash flows

b. Good reputation

c. Strong profitability

d. All of the above