Debenture finance, Finance Basics

Assignment Help:

Debenture Finance

A type of long term debt raised after a company sells debenture certificates to the holder and raises finance in return. The term debenture has its source from 'DEBOE' that means 'I owe' and is therefore a certificate or document which evidences debt of long term nature whereby the person named therein will have given the issuing company the amount generally less than the total par value of the debenture. These debentures generally mature among 10 to 15 years although may be endorsed, negotiated, discounted or provided as securities for loans whether as case they will have been liquidated before when their maturity date. The recent interest rate is payable twice a year and it is a legal obligation.


Related Discussions:- Debenture finance

FIR 3410, Your client, a man, is currently 35 years old and he wants to re...

Your client, a man, is currently 35 years old and he wants to retire when he is 65 years old (exactly 30 years from now). He would like his retirement income to be equivalent to

Cost of financial distress, Assume a levered firm has a current value of $6...

Assume a levered firm has a current value of $650,000,000. The firm currently has $259,258,527.20 in debt. Without debt, firm value (i.e. VU) would be $580,000,000. Ignore the cost

What is debt-equity ratio, Louis Futon Co. is currently an all-equity firm....

Louis Futon Co. is currently an all-equity firm. The current market value of the company is $80 million. The corporate tax rate is 35%. What is the new value of the company if Loui

Weaknesses of wacc as discounting rate, Weaknesses of WACC as Discounting R...

Weaknesses of WACC as Discounting Rate WACC/Overall cost of capital has the following problems like a discounting rate as:  It can simply be used as a discounting

Baumol's model - optimal cash balance, Baumol's Model - Optimal Cash Balanc...

Baumol's Model - Optimal Cash Balance An application of the EOQ is the Baumol's model which is inventory model to cash management. Its statements are as: The firm emplo

Explain the term - underwriting, Explain the term - Underwriting Und...

Explain the term - Underwriting Underwriting is an agreement whereby underwriter promises to subscribe to a specified number of debentures or shares or a specified amount of

Working Capital, AsStudents will analyze and synthesize the financial repor...

AsStudents will analyze and synthesize the financial reports of an organization of their choice and present their findings in a PowerPoint presentation (with completed Notes sectio

Eye field - vertebrate eye, Eye Field - Vertebrate Eye The development...

Eye Field - Vertebrate Eye The development of eyes starts with evagination of the lateral wall of the forebrain. one on each side, which make the optic vesicles. By vital dye

Boq, management and directors

management and directors

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd