Reference no: EM132676925
Questions -
Q1. A Bangladeshi corporation just hired ICB, a local investment banker, to help it issue common stock. The market value of the of the issue equals BDT 180000000, direct costs incurred by this corporation will amount to BDT 550000 and ICB charges a 5% fee for its services.
a. What will be net proceeds to Bangladeshi corporation from the BDT 180000000equity issue? That is, how much of the issue will Bangladeshi corporation be able to use?
b. If the price per share equals to BDT 40 at the time of the issue, how many shares of stock must be issued if the total value of the issue is BDT 180000000?
c. How many shares must be issued if the Bangladeshi corporation actually needs BDT 180000000? Assume that the issue price is BDT 40 per Share.
Q2. Discuss the concepts of Financial Environment. Describe the Financial Environment of Bangladesh in details.
Q3. Discuss different types of return and risk with examples.
Q4. Explain the following terms in details:
a. Different types of Financial Markets
b. Costs of Capital and Components of Capital
c. Working Capital Management
d. Functions of a Bank