What was the financial crisis?
What Is a Financial Crisis? In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay their debts, and financial institutions experience liquidity shortages.
What is MFN in leveraged finance?
While many borrowers take advantage of this opportunity, there are numerous factors to consider before doing so – particularly regarding the so-called Most Favored Nation (“MFN”) provisions applicable to incremental credit facilities.
What is MFN protection?
Finance. Business jargon for the concept that the first party will be entitled to at least as favorable terms as a second party in specified circumstances.
Who was responsible for the financial crisis?
Lehman Brothers CEO Richard Fuld He steered Lehman into subprime mortgages and made the investment bank one of the leaders in packaging the debt into bonds that were then sold to investors.
What is the primary goal of financial management?
The main goal of the financial manager is to maximize the value of the firm to its owners. The value of a publicly owned corporation is measured by the share price of its stock. A private company’s value is the price at which it could be sold.
What is incremental loan?
Related Content. Also known as an accordion feature. A feature of some loan agreements that allows the borrower to add a new term loan, tranche, or increase the revolving credit loan commitments under an existing loan facility up to a specified amount under certain terms and conditions.
What is favored nation pricing?
Most favored nation pricing for small business refers to pricing or other conditions set forth in a contract, that allows the purchasing company the benefit of favorable pricing.
What is MFN in venture?
What is the Most Favored Nation clause? A Most Favored Nation clause, or MFN clause as it is commonly known, protects an investor by giving them the same rights and benefits received by later investors, if those rights and benefits are more favorable than those originally agreed.
What is the primary goal of financial management quizlet?
The primary goal of financial management is to maximize the current value of the existing stock.
Which is the primary goal of financial management Mcq?
The primary goal of financial management is, to maximize the wealth of owners.
What are the major types of financial crises?
The financial crisis and its types and its consequences
- Banking Crisis.
- Currency crisis (exchange rate).
- External debt crisis.
- Balance of payments crisis.
- Stock market crisis (stock market crash)
What is accordion financing?
An accordion feature is an option that a company can buy that gives it the right to increase its line of credit (or similar type of liability) with a lender. Companies typically purchase an accordion feature in anticipation of the need for more working capital for possible expansion opportunities.
What is accordion in debt financing?
A debt accordion, also known as an incremental facility, is a provision that allows a borrower to expand the maximum amount allowed on a line of credit (LOC), or to add a term loan to an existing credit agreement.
What is favored purchasing?
It allows the purchasing company to b e able to purchase goods for at least the same price or lower as other companies are purchasing the same goods or services. The reason why it is called most favored “nation” pricing is because the term originally came about regarding international trade.
What are the main objectives of the most Favoured nation treatment obligation?
“Most-Favoured-Nation” (“MFN”) treatment requires Members to accord the most favourable tariff and regulatory treatment given to the product of any one Member at the time of import or export of “like products” to all other Members. This is a founding principle of the WTO.
Why is MFN important?
The most-favored-nation clause increases trade creation and decreases trade diversion, essentially encouraging more free trade between countries. It allows more efficient outcomes since the lowest cost producers can export goods to areas with the highest demand without government intervention.
What is a most favored nation clause finance?
The most-favored-nation clause requires a country to extend the same trade terms to all trading partners. The MFN clause is the founding principle of the World Trade Organization, with notable exceptions under WTO rules.
What are financing decisions?
What are Financing Decisions? Financing decisions refer to the decisions that companies need to take regarding what proportion of equity and debt capital to have in their capital structure. This plays a very important role vis-a-vis financing its assets, investment-related decisions, and shareholder value creation.
What are the most important decisions in financial management?
Thus, the most important ones are related to money. The decisions related to money are called ‘Financing Decisions.’ There are three decisions that financial managers have to take: These are also known as Capital Budgeting Decisions. A company’s assets and resources are rare and must be put to their utmost utilization.
What are the decisions related to money called?
The decisions related to money are called ‘Financing Decisions.’ There are three decisions that financial managers have to take: These are also known as Capital Budgeting Decisions. A company’s assets and resources are rare and must be put to their utmost utilization.
What are the major alternatives to capital financing decisions?
These decisions are an important part of financing decisions. Dividends decisions relate to the distribution of profits earned by the organization. The major alternatives are whether to retain the earnings profit or to distribute to the shareholders. Earnings: Returns to investors are paid out of the present and past income.