General electric capital a division of general electric

Assignment Help Accounting Basics
Reference no: EM13576251

General Electric Capital, a division of General Electric, uses long-term debt extensively. In early 2002, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal documents to prepare for another $50 billion long-term debt issue. As a result of the $50 billion filing, the price of the initial $11 billion offering declined.

Bill Gross, a manager of a bond investment fund, "denounced a ‘lack in candor' related to GE's recent debt deal. ‘It was the most recent and most egregious example of how bondholders are mistreated.' Gross argued that GE was not forthright when GE Capital recently issued $11 billion in bonds, one of the largest issues ever from a U.S. corporation. What bothered Gross is that three days after the issue the company announced its intention to sell as much as $50 billion in additional debt, warrants, preferred stock, guarantees, letters of credit and promissory notes at some future date."

In your opinion, did GE Capital act unethically by selling $11 billion of long-term debt without telling those investors that a few days later it would be filing documents to prepare for another $50 billion debt offering? "

Reference no: EM13576251

Questions Cloud

What are the step-by-step answers to excel case - : what are the step-by-step answers to excel case - translating foreign currency financial statements on page 500-501 in
The cost of general release feature productions is divided : inventories. the costs of feature films and television programs including production advances to independent producers
Using either the high-low method or regression analysis : determine if there is a relationship between machine hours and utility costs.monthmachine hoursutility
Which depreciation method does amazoncom use for reporting : which depreciation method does amazon.com use for reporting in the financial statements? what type of depreciation
General electric capital a division of general electric : general electric capital a division of general electric uses long-term debt extensively. in early 2002 ge capital
The bank indicated that the balance in anas account was : ana just received her bank statement and wanted to make sure that the balance in her check book was correct. ana
Two parts are assembled the distributions of x1 and x2 are : two parts are assembled. the distributions of x1 and x2 are normal with micro1 20 s1 0.3 and micro2 19.6 s2 0.4.
The overhead allocation rate in franz companys job order : the overhead allocation rate in franz companys job order cost accounting system applies overhead based on direct labor
A standardized test has a mean of 104 and a standard : a standardized test has a mean of 104 and a standard deviation of 16. we want to be 98 certain that we are withing 4

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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