MTHEL131 Lecture Notes - Lecture 7: Manulife, Disability Insurance, Life Insurance
23 Nov 2013
School
Department
Course
Professor
Document Summary
Jane is good at production and manufacturing side, jill is good at sale and finance. They corporate this company and 5 years later, its value became ,000,000. After the funeral, jill"s husband bob met jane. Bob wants jane to buy him out for ,000 (the value of jill"s share) Jane does not know where to raise the fund to buy bob out, and she goes to see the banker to borrow a load. Ability for banker to grant a loan is to see the large degree of your ability to pay that loan back over time: big component the cash flow. Since jill passes away, and she has been taking care of the sale and marketing, the company has decrease in sale. And jane promise to work through that. Banker asks jane to come back when the sales pick up. Jane goes back and tells bob, bob asked to move into jill"s office and takes jill"s salary.
