Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 05.2005
Share a link:
https://casecent.re/p/140
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
As the maturity date for General Motors'' Class E contingent notes approaches, the GM treasury staff must estimate the potential impact of the liability on corporate cash flows. The student is asked to value the contingent notes and express the value in terms of the cash flows GM might have to pay. The primary objective of the case is for students to draw the parallel between the determinants of value for exchange-traded options and for such nontraded options as contingent notes.
About
Abstract
As the maturity date for General Motors'' Class E contingent notes approaches, the GM treasury staff must estimate the potential impact of the liability on corporate cash flows. The student is asked to value the contingent notes and express the value in terms of the cash flows GM might have to pay. The primary objective of the case is for students to draw the parallel between the determinants of value for exchange-traded options and for such nontraded options as contingent notes.