Discuss the various timing risks a corporate CFO risks when raising funds via bonds or common stock and how the risks are the same and different?
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Discuss the various timing risks a corporate CFO risks when raising funds via bonds or common stock and how the risks are the same and different?
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- What is the impact on stockholders equity when a company uses equity financing as a source of funding?What is the impact on stockholders equity when a company uses debt financing as a source of funding?Discuss risks and returns characteristics of investing in ordinary shares and corporatebonds from the perspective of an investor.
- What are the different sources of risk for an investor who holds a corporate bond, what are different sources of risk for an investor who holds common stock in a publicly-traded company?Compare raising cash funds in the capital market (selling new shares of stock) versus the bond market (debt financing), and what is best and why.A company’s sources of long-term funds include bonds, preferred stock and common stock. Identify some financing risks associated with these sources and explain how these risks affect the return expected from investments financed by these sources.
- 1. Given the choices from time deposits, corporate bonds and stock, where will you invest your company's excess funds? Why? 2. Provide the two major types of Financial Instruments and explain each type briefly.Define the functions of the Over-The-Counter’s financial market that treasury staff must be aware of when funding their exposures with securities. Discuss the importance of hedging stock transactions in the secondary market where the cost of shares is unstable. Support your arguments with examples. 3. Discuss how financial markets enhance Treasury operations’ efficiency.Define the term "treasury stock." What are the reasons for a company to purchase treasury stock? What is the accounting treatment of treasury stock on the balance sheet?
- How will investors maximize the returns of corporatebonds or redeem their corporate bonds?In calculating earnings per share, a company uses the treasury stock method when a. it recognizes the assumed impact of exercising outstanding warrants. b. it develops a methodology to handle the premium paid on exercised share options. c. it needs to value the cash received for a convertible bond. d. it needs to value treasury stock repurchased during the year.In the context of the different types of securities for investment, match each sentence to the correct type of security. * Bonds Stocks Mutual funds Exchange-Traded Funds (ETFs) Real estate Alternative and complex products Collectibles A financial company receives money from different investors and invests the money in the financial markets, providing professional management, diversification, affordability, and liquidity. Pooled investment funds that offer an investor an interest in a professionaly managed and diversified portfolio of investments, and their shares are traded on stock exchanges. Securities representing a loan an investor makes to the issuer in exchange for interest payments and the repayment of principal at its maturity date. Investments in assets such as rare coins, works of art, old stamps, paintings, that appeal to collectors and investors. Securities that represent ownership in a company, usually providing dividends and the right to vote in the…