Capital Markets School - Case Study

 After tax earnings. Upside

Downside

Long-term funding source.

Subject to dividend declaration. May not be available in times of liquidity stress.

 Draw on parent company lines of credit. Upside

Downside

Can be a long-term funding source. Flexibility.

Usually requires collateral. May not be available in times of liquidity stress.

 Capital raises by parent company. Upside

Downside

Long-term funding sources.

Limited availability. Not practical unless capital is needed. May not be available in times of liquidity stress.

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