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Lender Scenario: You are the loan officer for a commercial lender. You have just received a request from the company you are researching to provide
- Lender Scenario: You are the loan officer for a commercial lender. You have just received a request from the company you are researching to provide loan funds that will allow the company to buy back 3% of its outstanding common stock. The company has indicated to you that it feels their stock is undervalued at this time.
- What is your response to their request?
- What will this do to the companys various debt and equity ratios?
- Given the competition, should the company alter its capital structure in this way?
- What interest rate would apply to the loan, and what will happen to the companys TIE/FCC calculations if the loan is pursued?
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Payroll Accounting
Authors: Bernard J. Bieg, Judith A. Toland
2013 edition
113396253X, 978-1133962533
