Principles of Finance_Biederman_Date_041210

Principles of Finance_Biederman_Date_041210 - WST Articles:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
WST Articles: April 9 “Greek Bond Woes” A1 “LA faces Insolvency”A6 “Saw grass faces foreclosure” C3 April 12 “Coming Taxes” A2 “Downside of Earnings Optimism”—Wall Street looks forward C1 13-38 Bankruptcy process Reorganization (Ch. 11 Bankruptcy) - Approaching/have negative back equity - Example: airlines, “slash debt, build equity”—restructuring Priority of Claims in liquidation: 1. Secured creditors from sale of secured assets 2. Trustee’s cost (lawyers, court etc.) 3. Wages, subject to limits (not top of chain then get short end) 4. Taxes 5. Unfunded pension liabilities (big issues—obligations of company to retirees and those when retires have little/none) 6. Unsecured creditors (“jackals”) 7. Preferred stock holders (bond/stock hybrid)- usually 8. Common stock (shares of everyday stock) CHAPTER 7 Role of Financial Markets - Need system to move money around (those that have it to those that need it) - Tell how prices are discovered Market functions - Market= low cost way of exchanging assets (usually cash) for something of value
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/30/2010 for the course FINC 311 taught by Professor Murphy during the Spring '08 term at University of Delaware.

Page1 / 2

Principles of Finance_Biederman_Date_041210 - WST Articles:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online