issue of Secured Non Convertible Debentures (NCDs) aggregating upto Rs. 375 crore with an option to retain over-subscription upto Rs. 375 crore for issuance of additional NCDs aggregating to a total of upto Rs. 750 crore. The Issue is open from August 11, 2011 to August 27, 2011 (The Company has the option of closing the issue on an earlier date, once it receives the amount it has targeted). The company will be paying an interest ranging between 11.50% and 12.10% p.a. on these bonds. Given the current
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x 40% = 400,000 dividend = 550,000 - 400,000 = 150,000 2. (TCO F) Orient Airlines' common stock currently sells for $33, and its eight percent convertible debentures (issued at par, or $1,000) sell for $850. Each debenture can be converted into 25 shares of common stock at any time before 2019. What is the conversion value of the bond? (a) $707.33 (b) $744.56 (c) $783.75 (d) $825.00 (e) $866.25 (Points : 1) 3. (TCO B) If debt financing is used, which
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Debt Financing July 1994 Debt Financing Warning This workbook is the product of, and copyrighted by, Citibank N.A. It is solely for the internal use of Citibank, N.A., and may not be used for any other purpose. It is unlawful to reproduce the contents of these materials, in whole or in part, by any method, printed, electronic, or otherwise; or to disseminate or sell the same without the prior written consent of the Professional Development Center of Latin America Global Finance and the
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1. INTRODUCTION TO INDIAN MARKETS THERE ARE TWO TYPES OF MARKETS IN INDIA MONEY MARKET Money market is a market for debt securities that pay off in the short term usually less than one year, for example the market for 90-days treasury bills. This market encompasses the trading and issuance of short term non equity debt instruments including treasury bills, commercial papers, bankers acceptance, certificates of deposits, etc. In other word we can also say that the Money Market is basically concerned
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debt including bonds payable, notes payable, mortgage notes payable, and capital leases. In part B, there are journal entry to restructure debt (land) and a computation of pension plan. Part A includes bonds payable, notes payable, mortgage notes payable, and capital leases. Bonds payable Bonds represent an obligation to repay principle at a time in the future and interest, usually on a semi-annual. Bonds are issued to different investors who may sell their bonds to other investors
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marketable| Ans:|D| 4.|Series EE bonds must be held at least ______ years in order to receive the guaranteed minimum rate.| A)|3| B)|5| C)|8| D)|10| Ans:|B| 5.|Treasury bills are traded in the _____________________.| A)|money market.| B)|capital market.| C)|government market.| D)|regulated market.| Ans:|A| 6.|Which of the U.S. Treasury securities is always sold at a discount?| A)|Treasury bills| B)|Treasury notes| C)|Treasury bonds| D)|All of the Treasury securities are
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INDIAN FINANCIAL SYSTEM The economic development of a nation is reflected by the progress of the various economic units, broadly classified into corporate sector, government and household sector. A financial system or financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the deficit. It is a composition of various institutions, markets, regulations and laws, practices, money manager analyst, transactions and claims and liabilities. function
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Bangladesh. A financial market is a market in which people and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural goods. The financial market in Bangladesh is mainly of following types: 1. Money Market: A segment of the financial market in which financial instruments with high liquidity and very
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and negotiate a price for the security and the timing of the issue.Depending on the size of the issue, the investment banker may invite other firms to join in sharing the risk and selling the issue.Generally used in corporate stock and most corporate bond issues. 2) Best efforts offering Under this arrangement, the investment bankers agree to sell only as many securities as they can at an established price. They have no responsibility for securities that remain unsold. In other words, they
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Chapter 4 Answers to Concept Review Questions 1. Managers need to understand how bonds and stocks are priced because (1) firms regularly issue stocks and bonds to raise money for investment (2) understanding how securities are priced is helpful when conducting an acquisition or a divestiture, (3) the stock price is an objective signal of how managers are performing, and (4) finance theory teaches that the goal of the manager should be to maximize the firm’s stock price. 5. The coupon rate
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