MGTA02H3 Chapter Notes - Chapter 10: High-Yield Debt

38 views5 pages
16 Dec 2010
School
Course
Professor
ivanzh686 and 40070 others unlocked
MGTA02H3 Full Course Notes
1
MGTA02H3 Full Course Notes
Verified Note
1 document

Document Summary

N work-in-process inventory that portion of a firm"s inventory consisting of goods partway though the production process. N working capital is difference between current assets and current liabilities; it is liquid asset out of which current debts can be paid. N moreover, they generally carry lower interest rates than unsecured loans. N most short-term business borrowing is secured by inventories and accounts receivable. N when a loan is made with inventory as collateral, the lender loans the borrower some portion of the stated value of the inventory. N inventory is more attractive as collateral when it provided the lender with real security for the loan amount: if the inventory can be readily converted into cash, it is relatively more valuable as collateral. N most corporations get their long-term loans from a chartered bank, usually ones with which the firm has developed a relationship.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions