Musk Bankers Mull Tesla Margin Loan

Musk Bankers Mull Tesla Margin Loan

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the financial challenges Twitter faces following its $44 billion buyout, which resulted in $13 billion of debt. The company is exploring options to manage this debt, including margin loans and other strategies. The high interest payments and reduced revenue due to advertising issues are significant concerns. Banks have had to fund the debt due to market conditions, and Tesla stock was initially involved in the financing package. The focus is now on managing $3 billion of unsecured debt with a high interest rate.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the total debt loaded onto Twitter during the buyout?

$3 billion

$1.2 billion

$44 billion

$13 billion

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the annual interest payment Twitter had to make on its loans?

$3 billion

$44 billion

$13 billion

$1.2 billion

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why were banks forced to fund Twitter's entire debt package?

To support Tesla's stock

Due to deterioration in the credit market

Because of high advertising revenue

To increase Twitter's stock value

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was initially included in Twitter's financing package?

44 billion in equity commitments

1.2 billion in annual interest payments

3 billion in unsecured debt

12.5 billion in margin loan commitments backed by Tesla stock

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the interest rate on the $3 billion unsecured debt?

5.5%

11.75%

1.2%

9.25%