Fri.Aug 06, 2021

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GE's Stock Price Jump

Corporate Finance

If you own shares of GE, you may have noticed that the share price jumped 700 percent in one day! The reason is that GE underwent a 1-for-8 reverse stock split. As a result, the stock price increased from $12.95 to about $104. CEO Larry Culp stated that the split was undertaken to be more comparable to its peers. Typically, a reverse stock split is done after poor stock performance.

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GE's Stock Price Jump

Essentials of Corporate Finance

If you own shares of GE, you may have noticed that the share price jumped 700 percent in one day! The reason is that GE underwent a 1-for-8 reverse stock split. As a result, the stock price increased from $12.95 to about $104. CEO Larry Culp stated that the split was undertaken to be more comparable to its peers. Typically, a reverse stock split is done after poor stock performance.

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Negative Amortization

Corporate Finance

In the textbook, we discussed how a loan is normally amortized, with a portion of each payment going toward the interest accrued during the period and the remainder paying down principal. A recent article highlights the dangers of negative amortization, that is when the interest paid each period is less than the interest accrued during that period. One student graduated in 2010 with $50,000 in debt.

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Negative Amortization

Essentials of Corporate Finance

In the textbook, we discussed how a loan is normally amortized, with a portion of each payment going toward the interest accrued during the period and the remainder paying down principal. A recent article highlights the dangers of negative amortization, that is when the interest paid each period is less than the interest accrued during that period. One student graduated in 2010 with $50,000 in debt.

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Planning Your Restaurants Path to Profitability

Speaker: James Kahler, COO of Full Course

Ever wondered where to splurge and where to safely conserve when it comes to operating and growing your restaurant? 🤔 Join James Kahler, COO of Full Course and industry visionary, in this new webinar where he'll talk all about best practices to invest in your restaurant's success! Whether you're a new business or an established restaurant, a seasoned pro or a rookie, you'll learn the keys to sustainable success in this competitive industry.

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Working Capital Hit

Corporate Finance

The COVID-19 economic downturn affected many areas of business, including working capital management. A recent survey by the Hackett Group highlights some of the effects. For example, for the largest 1,000 publicly traded U.S. companies, the receivables period increased 1.5 days, the payables period increased 4.4 days, and the inventory period increased 4 days.

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