Category Archives: Choice Debt Equity

What do you do with $ 30 bn cash ?

On October 10th, it was revealed that Google is developing a self-driving car and that it had already tested it over 140,000 miles of public roads. I also learned, reading  that article, that Google is sponsoring a prize for landing … Continue reading

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The limits of covenants

On October 5th 2010, the Flemish business paper De Tijd published a short article entitled “Banken blijven noodlijdend technologiebedrijf Option steunen” (Banks are obliged to go on supporting the technology company Option). Option is a Belgian company manufacturing mobile modems.  … Continue reading

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Conflict between shareholders and lenders: the perfect example

For years, I have been explaining to my students that there is a potential conflict of interest between the owners of a company and the people that lend money to it.  Indeed, shareholders have the chance to get an upside on … Continue reading

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