Financing

Throughout the life of this Company, Dwight is proud of the fact that he has never before required any outside financing--other than his line of credit. The line of credit is currently at its maximum.Therefore, given the demands on liquidity in the past year, Dwight decided to issue preferred sharesto an outside private investor. He did this because of the positive impact on his debt equity ratio andthe fact that he would not be giving up any control. The preferred shares will be paid 6% on acumulative basis. They are redeemable at any time by DI and redeemable at the holders option at the end of three years and any time thereafter.

Posted Date: 2/25/2013 5:50:45 AM | Location : United States

Ask an Expert

Related Discussions:- Financing, Assignment Help, Ask Question on Financing, Get Answer, Expert's Help, Financing Discussions

Write discussion on Financing
Your posts are moderated

Write your message here..

Related Questions

What will be the effect of transaction, A company's current assets are less... A company's current assets are less than its current liabilities. Company issues new shares at full market price. What will be the effect of this transaction upon company's work

What is over-capitalisation, Q. What is Over-capitalisation? Over-capi... Q. What is Over-capitalisation? Over-capitalisation This is the opposite of over trading. It means a company has a large volume of inventories, cash balances and trade re

#titleAssignment Help.., Question I: (50 points) Derive the pricing formula... Question I: (50 points) Derive the pricing formula for the expected excess return of a risky stock and the riskfree stock in the traditional consumption-CAPM assuming that the leve

Current ratio or working capital ratio, Current ratio (CA) or working capit... Current ratio (CA) or working capital ratio CA = Current assets/Current liabilities (times) Current ratio measures the short term solvency or liquidity; it signifies the ext

Concepts of adverse selection and moral hazard, Consider a recent merger be... Consider a recent merger between two major corporations. Describe the terms of the merger (cash or stock, premium, changes in management / directors, etc.). Explain the motivation

Threshold cointegration, I need to conduct bivariate tests using two regime... I need to conduct bivariate tests using two regime threshold cointegration for nonlinear relations. I have the code but it will nee some modification. Is there someone can help?

Analyze the asset price channels, Problem 1: (a) Analyze the asset pri... Problem 1: (a) Analyze the asset price channels other than the traditional interest rate channel. (b) Analyze Bank lending channel and discuss its importance for the Mau

Explain moderate working capital policy, Q. Explain Moderate working capita... Q. Explain Moderate working capital policy? All the non-current assets and permanent asset are financed by long-term finance. The temporary fluctuating assets financed by short

Effective yield to maturity, Research in Motion (RIM), once known as the gl... Research in Motion (RIM), once known as the global leader in wireless innovation, has lost its darling status after the introduction of the Apple iPhone.  In 2011, RIM's stock pric

What do you meant by trade payable days, Q. What do you meant by Trade paya... Q. What do you meant by Trade payable days? Year-end trade payables/Credit purchases (or cost of sales)x 365 days This is the length of time taken to pay suppliers. Ratio ca