Cost of financial distress and Psychodynamic coaching: Difference between pages

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''Corporate finance''.
''Working effectively with others - coaching techniques''.


According to Modigliani and Miller's theory, as a company’s capital structure is composed of more and more debt a point is reached where equity cost and debt cost increase beyond that predicted by pure arbitrage of the appropriate cost of capital for the business. 
Psychodynamic coaching focuses on the powerful influences of unconscious motives on individuals' behaviour.
This extra cost is described as the cost of financial distress; potentially the cost of dealing with a near-insolvency situation.


Financial distress costs can include:
It aims to increase clients' freedom and ability to choose, by bringing their unconscious motives into conscious awareness.
o Higher rates of interest payable on borrowings.
o Additional fees payable on new borrowings.
o Additional restrictive covenants for new borrowings.
o Reduced availability of borrowings.
o Reduced availability of trade credit.
o Management time and loss of operational focus through the additional communications needed with lenders.
o In the worst case, actual insolvency.


The point at which financial distress costs become significant can be difficult to predict with precision.
==See also==
However it can be estimated by reference to industry norms for key financial credit assessment ratios such as interest cover and debt equity ratios.
*[[Association for Coaching]]
*[[Association of Corporate Treasurers]]
*[[Career coaching]]
*[[Client]]
*[[Coach]]
*[[Coaching]]
*[[Coaching applications]]
*[[Coaching techniques]]
*[[Cognitive behavioural coaching]]
*[[Contracting]]
*[[Cross-cultural coaching]]
*[[Developmental coaching]]
*[[European Mentoring & Coaching Council]]
*[[Existential coaching]]
*[[Executive coaching]]
*[[Gestalt coaching]]
*[[GROW]]
*[[Health and wellness coaching]]
*[[International Coach Federation]]
*[[Leadership coaching]]
*[[Mentor]]
*[[Narrative coaching]]
*[[NLP coaching]]
*[[Ontological coaching]]
* [[Organizational coaching]]
*[[Peer coaching]]
*[[Person-centred coaching]]
*[[Positive psychology coaching]]
*[[Skills and performance coaching]]
*[[Solution-focused coaching]]
*[[Team coaching]]
*[[TGROW]]
*[[Transactional analysis and coaching]]
*[[Transactional coaching]]
*[[Transformational coaching]]
*[[Transpersonal coaching]]
*[[Working effectively with others]]


At the point at which the borrower breaches the industry norm for key ratios, it is likely that significant financial distress costs will be incurred.


Also known as Bankruptcy costs.
==Other link==
[https://www.treasurers.org/node/307760 How to pick the right executive coach, Association of Corporate Treasurers]


== See also ==
[[Category:Commercial_drive_and_organisation]]
* [[Debt equity ratio]]
[[Category:Influencing]]
* [[Insolvency]]
[[Category:Self_management_and_accountability]]
* [[Interest cover]]
[[Category:Working_effectively_with_others]]
* [[Modigliani and Miller]]
[[Category:Planning_and_projects]]

Revision as of 08:24, 24 May 2020

Working effectively with others - coaching techniques.

Psychodynamic coaching focuses on the powerful influences of unconscious motives on individuals' behaviour.

It aims to increase clients' freedom and ability to choose, by bringing their unconscious motives into conscious awareness.


See also


Other link

How to pick the right executive coach, Association of Corporate Treasurers

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