Domanda di colloquio di BMO Financial Group
If payment-in-kind depreciations changes how does it affect each finical statement?
Risposte di colloquio
Anonimo
17 nov 2014
PIK are debt where interest is paid in the forms of other debt or issuing more debt rather than cash. Therefore if PIK are a liability and it is going down, the company is paying it off, means a that they are paying down debt with cash rather than more debt. Vice versa if PIK depreciations (being paid down) increases.
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