Convertible bond

INTRODUCTION 2. NATURE OF CONVERTIBLE BONDS 3. FINANCIAL ADVANTAGES AND DISADVANTAGES 3.1 3.2 ADVANTAGES DISADVANTAGES ii 1 1 2 2 2 3 5 5 6 7 4. ACCOUNTING TREATMENT 5. LOGIC OF THE ACCOUNTING REQUIREMENTS 6. CONCLUSION 7. RECOMMENDATIONS REFERENCES

plethora of bonds, funds, stock, etc. available in the market an individual must have sufficient information to make better financial decisions. To make this simple let us today look at (FCCB) foreign currency convertible bond. So what is foreign currency convertible bond (FCCB)? To make things much simpler we have broken the word (FCCB) foreign currency convertible bond into two simple words; foreign currency and convertible bond. Let us look at foreign currency, (FCCB) foreign currency convertible bond

There are number reasons a corporation may consider convertible bond issuance. The instrument itself is a bond that may be converted to another type of security at the company that issued the bond. Converting such an item is all left up to the discretion of the bondholder. The reason for a company to want to issue such an item of course would always be in the best interest of the company itself for doing so. Convertible bonds are considered what is known as a hybrid security where it is considered

issuance of convertible bonds and of debt instruments with separate warrants to purchase common stock. Convertible debts are long-term securities which can be converted into issuer 's stock options at a specified conversion ratio, if the debt-holder wants to exercise them. Convertibles include bonds and preferred shares, but most commonly take the form of bonds. Convertible bonds are a type of compound financial instrument with characteristics of both liability and equity. Convertibles are appealing

Intel Corporation, 1992 Case Study Describe the characteristics of the industry in which Intel operates. How is Intel positioned in the industry? Intel operates in an industry, which is comprised of products involving high research and development costs, continuous product improvement and new innovations. The companies in the industry are having high economies of scale and are knowledge based. It helps both the service and manufacturing sectors in the growth process. Intel is positioned

Is HydroFruit still an attractive investment opportunity for MegaBank? Making an investment in a company with potential legal issues is a risk, but with plausible solutions investment looks to be rewarding. MegaBank is looking to make a $65million equity investment in HydroFruit, but there is risk in this new investment. HydroFruit does face two major legal risks which involves: the hiring of illegal immigrants, and potential discrimination lawsuits. Objective and Goal: MegaBank’s main objective

The Brothers Bond “The Red Convertible “is a really great story to read because of its themes, characters, and its background. The author gives a lot motivations for the readers to be interested. “The Red Convertible” is a story that deals with two brothers that come from the Chippewa reservation. The story’s focus is the two brothers and how did their relationship has changed after a period and especially how did the red convertible reflect on their relationship. Those changes were sad and turned

CHAPTER 21 HYBRID FINANCING: PREFERRED STOCK, WARRANTS, AND CONVERTIBLES True/False Easy: (21.1) Preferred stock Answer: b EASY [i]. The "preferred" feature of preferred stock means that it normally will provide a higher expected return than will common stock. a. True b. False (21.1) Cost of preferred stock Answer: a EASY [ii]. Unlike bonds, the cost of preferred stock to the issuing firm is the same on a before-tax and after-tax basis. This is because dividends on preferred

In a typical convertible bond, the bondholder is given the option to convert the bond into a specified number of shares of stock. The conversion ratio measures the number of shares of stock for which each bond may be exchanged. Stated differently, the market conversion value is the current value of the shares for which the bonds can be exchanged. The conversion premium is the excess of the bond value over the conversion value of the bond. The conversion option in a convertible bond is equity.

Since repurchases reduce the shares outstanding, it kept the EPS relatively steady despite the dilutive effects on EPS from the convertibles. The share repurchase also provided a positive signal to the market that the company viewed its stock as undervalued, a strategy that could encourage investors to increase their positions in the firm. Fund Usage and Firm Needs in 2006 By