User Account

All Pages

Advantage of the corporate form of organization

Assignment Help Finance Basics
Reference no: EM132785467

Suppose you are a lender/a professional investor. You are looking for some investment opportunity in the bond market. You find an interesting bond, with low credit rating CCC, issued by a small company ABC. Though you do have some worries about ABC company's financial performance, and default risks of the bond coupon payment. However you decide to lend to ABC company by purchasing its CCC credit rating bond, and you require ABC company an assignment of the common stock as collateral on the loan. Then, if the business fails to repay its loan, the ownership of the stock certificates can be transferred directly to you/the lender. Why might you want such an assignment? What advantage of the corporate form of organization comes into play here? Explain in detail

Reference no: EM132785467

Questions Cloud

Prepare the bond amortisation table for coco limited : Prepare the bond amortisation table for COCO Limited, indicating the amount of interest payment, interest expense, amortisation, and carrying amount
What is the semiannual coupon payment : What is the semiannual coupon payment for a 8% bond with a $1,000 par?
Clients holding period rate of return : Client A covers the position after one year at a share price of $30. What was the client's holding period rate of return?
Explain consequences of the agricultural revolution : Explain the causes and consequences of the Agricultural Revolution. How did trade link the world in the ancient, Greek, and Roman periods?
Advantage of the corporate form of organization : Why might you want such an assignment? What advantage of the corporate form of organization comes into play here? Explain in detail
What was the value of the rrsp : Lily contributed $1,500 to her RRSP at the end of every half-year. What was the value of his RRSP after 12.5 years if the RRSP grew at 3.1%
What would be the yield to maturity : If you buy the bond, and hold it to maturity, what would be the yield to maturity?
Determining the annual rate of interest : Suppose you are an investor and is considering depositing $20,000 initially and making monthly contributions of $250 per month, the first contribution
How much depreciation expense will be recorded for the truck : Nuby Trucking Company purchased a new truck, How much depreciation expense will be recorded for the truck during the year ended December 31, 2020?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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