Lessons in Corporate Finance

A man is getting into the shower just as his wife is finishing up her shower, when the doorbell rings.

"I'll get it," the wife says, quickly wrapping herself up in a towel and running downstairs.

When she opens the door she finds Bob, the next-door neighbor. Before she says a word, Bob says, "I'll give you $750 to drop that towel you have on."

After thinking for a moment, the woman drops her towel and stands naked in front of Bob. After a few seconds of rapt appreciation, Bob hands her $750 and leaves. Confused but excited about her good fortune, the woman wraps herself back up in the towel and goes back upstairs.

When she returns to the bathroom, her husband asks from the shower, "Who was that?"

"It was Bob from next door," she replies.

"Great," the husband says. "Did he say anything about the $750 I lent him last night?"

Corporate Finance Lesson Learned: If you share critical information pertaining to credit and risk with your stakeholders in time, you may be in a position to prevent avoidable exposure.

Posted September 9, 2015

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