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Question #2: Regulations, Banking & Financial Markets: 10%: Assume that Company A and Company B are in Country X but A is incorporated in province
Question #2: Regulations, Banking & Financial Markets: 10%: Assume that Company A and Company B are in Country X but A is incorporated in province Q and B is incorporated in province Z. And that province Z passed a legislation empowering lenders to repossess collateralized assets as soon as a company incorporated in the jurisdiction files for bankruptcy. What might be the effects of this new legislation specifically on the financial markets, dividend policy and equilibrium overnight interest rate? Question #2: Regulations, Banking & Financial Markets: 10%: Assume that Company A and Company B are in Country X but A is incorporated in province Q and B is incorporated in province Z. And that province Z passed a legislation empowering lenders to repossess collateralized assets as soon as a company incorporated in the jurisdiction files for bankruptcy. What might be the effects of this new legislation specifically on the financial markets, dividend policy and equilibrium overnight interest rate
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