EBC2070_Chapter 8A

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Across
  1. 1. A strategy that tries to limit risks in financial assets
  2. 6. A condition in which a company or individual cannot generate sufficient revenues or income, making it unable to meet or pay its financial obligations
  3. 8. A type of internal company expense, which comes from the actions of an agent acting on behalf of a principal
  4. 9. Reducng the cost of debt with a hedging policy
  5. 10. Reducting bankruptcy costs with a pre-packages bankruptcy
Down
  1. 2. Value that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debts were paid off.
  2. 3. Present value of expected future cash discounted at a rate that reflects the systematic risk of those cash flows
  3. 4. The difference in interest payments that is exchanged between two swap counterparties
  4. 5. Financial contracts which gives the buyer the right to buy an asset at a predetermined exercise price and a predetermined expiration date.
  5. 7. A party that has an interest in a company and can either affect or be affected by the business.