Thư viện tài liệu, ebook tổng hợp lớn nhất Việt Nam

Company C has a convertible debenture outstanding that provides an 8% coupon (interest is paid semiannually) and continues exactly 20 years until final maturity. A similar nonconvertible bond will currently provide a 5% semiannual yield to maturity. What is the straight bond value of Company C’s convertible bond? V = $40 (PVIFA5%, 20x2) + $1,000 ...

28 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 845 | Lượt tải: 0

These term loans usually have final maturities in excess of seven years. These companies do not have compensating balances to generate additional revenue and usually have a prepayment penalty. Loans must yield a return commensurate with the risks and costs involved in making the loan. As such, the rate is typically higher than what a bank would ...

37 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 890 | Lượt tải: 0

Volatility in interest rates or a decline in the credit quality of the firm could lower the market price of the bond and enhance the value to the firm of having this option. Bondholders may benefit from the orderly retirement of debt (amortization effect), which reduces the default risk of the firm and adds liquidity to bonds outstanding.

41 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 996 | Lượt tải: 0

The issuing company selects an investment banking firm and works directly with the firm to determine the essential features of the issue. Together they discuss 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...

41 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 861 | Lượt tải: 0

Tax Effect Dividends are taxed more heavily than capital gains, so before-tax returns should be higher for high-dividend-paying firms. Empirical results are mixed -- recently the evidence is largely consistent with dividend neutrality. Financial Signaling Expect that increases (decreases) in dividends lead to positive (negative) excess stock re...

43 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 892 | Lượt tải: 0

The cost of capital is dependent on the capital structure of the firm. Initially, low-cost debt is not rising and replaces more expensive equity financing and ko declines. Then, increasing financial leverage and the associated increase in ke and ki more than offsets the benefits of lower cost debt financing. Thus, there is one optimal capital st...

38 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 892 | Lượt tải: 0

Break-Even Analysis -- A technique for studying the relationship among fixed costs, variable costs, profits, and sales volume. When studying operating leverage, “profits” refers to operating profits before taxes (i.e., EBIT) and excludes debt interest and dividend payments.

63 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 866 | Lượt tải: 0

Assume that Basket Wonders (BW) has preferred stock outstanding with par value of $100, dividend per share of $6.30, and a current market value of $70 per share. kP = $6.30 / $70 kP = 9%

49 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 890 | Lượt tải: 0

A graphic or tabular approach for organizing the possible cash-flow streams generated by an investment. The presentation resembles the branches of a tree. Each complete branch represents one possible cash-flow sequence.

43 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 907 | Lượt tải: 0

$40,000 = $10,000(PVIF10%,1) + $12,000(PVIF10%,2) + $15,000(PVIF10%,3) + $10,000(PVIF10%,4) + $ 7,000(PVIF10%,5) $40,000 = $10,000(.909) + $12,000(.826) + $15,000(.751) + $10,000(.683) + $ 7,000(.621) $40,000 = $9,090 + $9,912 + $11,265 + $6,830 + $4,347 = $41,444 [Rate is too low!!]

58 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 822 | Lượt tải: 0