Event of default and Opportunity cost of capital: Difference between pages

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The event of breaching a loan agreement. 
A strict measure of the cost of capital, emphasising that it is the current market cost of capital - and not the historical cost or the cash cost - that is relevant for financial decision making purposes.
 
 
Each loan agreement will normally define exactly what constitutes an event of default of that agreement.
 
Events of default will generally include:
*any failure to pay interest or capital on a due date,
*any failure to comply with a covenant, and  
*any inability to repeat a representation.




== See also ==
== See also ==
* [[Acceleration]]
* [[Capital]]
* [[Breach of covenant]]
* [[Cost of capital]]
* [[Covenant]]
* [[Opportunity cost]]
* [[Cross default]]
* [[Default]]
* [[Financial covenant]]
* [[Grace period]]
* [[Loan agreement]]
* [[Material adverse change]]
* [[Representations and warranties]]
* [[Waiver]]
* [[Putting a limit on losses]]


[[Category:Compliance_and_audit]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Corporate_finance]]
[[Category:Investment]]

Latest revision as of 21:29, 16 December 2021

A strict measure of the cost of capital, emphasising that it is the current market cost of capital - and not the historical cost or the cash cost - that is relevant for financial decision making purposes.


See also

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