POINTS TO REMEMBER
  1. What are the basic features of term loans?
    • Fixed maturity
    • Direct negotiation with the lender
    • Tie-up with collateral
    • Restrictive covenants
    • Fixed repayment schedule
  2. What are the different kinds of amortization schedule?
    • In the first case, repayment of the principal is periodic and its size is constant. The size of instalment varies because of varying interest payment.
    • In the other case, repayment of the principal is made at the maturity in a lumpsum. Interest payment is periodic.
    • Still in the other case, the size of instalment is constant, the size of principal rises, but the size of interest payment declines.
  3. What are the different kinds of leases?
    • Operating lease where lessor provides services and maintenance of the ...

Get Fundamentals of Financial Management, Third Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial