issurance of convertible bonds to be an attractive form of financing

Q: Why might a company choose to raise money through bonds, rather than take out a note payable or…

A: Bonds are the long-term liability of the company where the company raises the money in lieu of…

Q: Why would a company wish to reduce its bond indebtedness before its bonds reach maturity? Indicate…

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Q: What impact do bond ratings have on the cost of debt to the issuing firm?

A: Bond Ratings: It is the ratings that portrayals of the reliability of corporate or government bonds.…

Q: One of several reasons that companies might choose to issue bonds is to shift their capital…

A: Bonds are the liability for the company and its issue increases the borrowings. Whereas, equity…

Q: Which of the following is the risk due to a firm's debt usage?      Business risk     Financial…

A: The investments that we make in debt, equity and other financial securities are exposed to different…

Q: Which of the following lowers the required interest rate that firms have to pay on their bonds?…

A: Companies tend to pay larger interest rates as the risk is raised to the bond investor since the…

Q: Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a…

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Q: Are there any advantages to the equity-holders of banks from them engaging in short-term as opposed…

A: Equity holders enjoy the return from two sources i.e. from the company's end in the form of a…

Q: Some market participants say that convertible bonds are “debt when you want them to be equity, and…

A: A bond is a kind of debt instrument that a public company or a government of country issues in the…

Q: Is issuing equity or debt preferable in the current business climate? Why?

A: debt are issued by the company in order to raise the capital it is considered to be the liability…

Q: From the standpoint of an Investor, is equity or debt riskier? Explain.

A: Investors are who wants to earn some profit on investment but investors are always concerned with…

Q: What are Capital Markets, and how do bonds markets fit into the definition of Capital Markets?

A: Capital markets is a broad term used to describe a venue where funds are exchanged between suppliers…

Q: Is preferred stock comparable to long-term debt in any way? Is it comparable to equity in any way?

A: Preferred stocks are the form of shares being issued by a company for increasing its capital. The…

Q: Why think that convertibles are riskier than straight bonds?

A: There are pros and cons to the use of convertible bonds as a means of financing by corporations. One…

Q: What is a bond?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: How do convertible bonds help reduce agencycosts?

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Q: If bonds payable are not callable, the issuing corporation a.can exchange them for common stock…

A: Solution: When bond are callable, the issuing corporation can redeem the bond at a specified price…

Q: What are the advantages and disadvantages of debt and equity issuance?

A: Lets understand the basics. Debt is a as name suggest liability of the company so interest payment…

Q: What types of advantages or expertise should an investment bank have to be competitive in the…

A: Investment bank is the service providing institute which plays a role of middleman between investors…