Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Solutions to agency problem
The bondholders might receive the following procedures to protect themselves from the process of the shareholders that might dilute the value of the bond. These processes involve as:
1. Call capability Provisions
These provisions will give such the borrower will have to pay the debt before the ending of the maturity duration if there is breach of conditions and terms of the bond covenant.
2. Transfer of Asset
3. Representation
The bondholder or lender may insist to have a representative in the board of directors of the borrower who such will oversee the consumption of the debt capital borrowed and safeguard the interests of the bondholder or lender.
4. Refuse to lend
Whereas the borrowing company has been included in un-ethical practices associated along with the debt capital borrowed, such the lender may withhold the debt capital thus the borrowing firm may not get together its investments requires without adequate capital.
The different way to this is to charge high interest as a deterrent mechanism on the borrower.
5. Convertibility
On breach of bond agreements, the lender might have the right to change the bonds into ordinary shares.
Government - Measuring Business Performance Government The Government is interested particularly in utility companies as KPLC, KPTC and such will offers public services -
Shareholders and Creditors Shareholders And Creditors or bond or debenture holders Bondholders are lenders or providers of long term debt capital. Usually they will provi
How long until I get the results of my order
I need a conclusion for my assignment for financial accounting vs management accounting
Capital Asset Pricing Model (CAPM) CAPM is a methods that is used to establish the required rate of return of an investment provided a particular level of risk. According to
Term Structure of Interest Rates The term structure of interest rate give details the relationship between the term to maturity and interest rates and the differences between
Control of Pattern Formation Limbs such as all other organs have a pattern. What factor (or factors), environmental affects etc. are responsible for specific positioning of i
Capital Structure Ratio Gearing/Leverage/Capital Structure Ratio The ratio signifies the extent whether the firm has borrowed fixed charge capital to finance the
Example of NPV Value A company is faced along with the following five (5) investment opportunities as: Cost NPV P.I = Total P.v
#questiofvdgbgbgnfbfn..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd