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We discussed the case of Twin Peaks Co. and Power Finance Co. in class. Which of the following is not among the reasons banks are
We discussed the case of "Twin Peaks Co. and Power Finance Co." in class. Which of the following is not among the reasons banks are willing to lend to the newly established Power Finance Co.?
Question 3 options:
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A) | No other creditors to compete against if Power Finance defaults and files for bankruptcy |
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B) | The loan is secured by the specific power generating plant
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C) | Power finance will become highly leveraged |
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D) | The loan is guaranteed by Twin Peaks |
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