Debenture

Debenture is most important instrument and method of raising the loan capital by the company. A debenture is like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital. Section 2 (30) of the Companies Act, 2013 define inclusively debenture as "debenture" includes debenture stock, bonds or any other

1. Effective Interest Rate on the new 10% debentures = 14.318% For the 10% debentures, the market value of 1 share is $19.5 (given) The equivalent of this is a cash offer of $3/share and a 10% subordinated debenture of face value of $23. So the PV (10% subordinated debentures with FV $23) = $19.5 - $3 = $16.5 The effective interest rate (yield) on the above is that interest rate ‘r’ that gives the following PV (Per period payment of ($23*5% i.e. $1.15) over 40 periods @ r) + PV

financing methods listed in Section A. Section A Leasing arrangements Long-term bonds Debt with warrants Friends or relatives Common stock: non-rights Preferred stock (nonconvertible) Common stock: rights offering Convertible debentures Factoring Section B Boudoir’s Inc. Timberland Power & Light Ripe and Fresh Canning Company Piper Pickle Company Copper Mountain Mining Company Bull Gator Saloon and Dance Hall Golden Gate Aircraft Corporation Schooner

QUESTION 2 (a) What are the effect of pre incorporation contrast according to common law and the Malaysian Companies Act 1950? Explain the cases relevant to the aforesaid matter. Introduction Often promoters of companies try to enter into contracts on behalf of proposed corporations in order to secure the contract before the time for incorporation or to confirm the contracts for the corporation before the expense of incorporation is incurred. Normally the promoter does not have any intention

It has come to my understanding that you requested my firm’s services regarding proper accounting practices for the acquisition of long term debentures. Therefore, I write to you this memo to address some issues you might be having with your newly obtained debt and to explain how to properly amortize it. I have been informed that you already have an accounting expert that advised you to use the Straight Line method of amortization for the discount on the bond. My expertise lies on the Effective-Interest

SEBI-Sahara OFCD case: Optionally fully-convertible debentures- Meaning explained 1. What is Debenture? 2. Difference between Bonds and Debentures? 3. Types of Debentures 4. What is Optionally fully-convertible debentures (OFCD)? 5. 2008-09: The game begins 6. 2011: SEBI Order 7. 2012: Supreme Court hearing 8. Order of Supreme Court 9. Government’s response What is Debenture? From the earlier Debt + Equity article, you know there are two (legit) ways to arrange money for starting or expanding

this paper to every man and women and I put this project between their hand. I discuss in this project the characteristics of the share, types of shares, negotiation of shares in more deep details, loan stock(Debentures) and the last thing is the loss and destruction of shares and debentures. I try to collect as much as I can from the UAE Law. Finally, this project adds a good value to me and I hope it will be a good paper. First of all let me give you the definition of the company: Article 4:

the debentures either from the market or owners. Creation of the sinking fund eliminates the risk of facing financial difficulty at the time of redemption because redemption requires huge sum. Buy back provisions help the company to redeem the debentures at a special price before the maturity date. Usually the special price is higher than the par value of the debenture. Indenture It is a trust deed between the company issuing debenture and the debenture trustee who represents the debenture holders

generally comprises of periodic interests over the life of the instrument and the principal is paid at the time of redemption. The amount of risk involved in debentures or bonds is dependent upon who is the issuer. For example, if the issuer is government, the risk is assumed to be zero. Following alternatives are available under debentures or bonds: • Government securities – Debt instruments issued by the central, state or quasi government bodies are referred to as government securities or gilt-edged

A debenture is “an unsecured bond, and as such, it has no lien against specific property as security for the obligation. For example, Mid-Texas Healthcare System has $5 million of debentures outstanding. These bonds are not secured by real property but are backed instead by the revenue-producing power of the corporation” (Gapenski, 2008, p.345). Debenture holders are, “therefore, general creditors whose claims, in the event of bankruptcy, are protected by property not otherwise pledged. In practice