SEBI guidelines pertaining to the Issue of Debentures are as follows:- * Issue of FCDs having a conversion period more than 36 months will not be permissible, unless conversion is made optional with “put” and “call” option. • Compulsory credit rating will be required if conversion is made for FCDs after 18 months. • Premium amount on conversion, the conversion period, in stages, if any, shall be pre-determined and stated in the prospectus. • The interest rate for above debentures will be
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Tony Moss, president of Greater Queensland Bank, received an anonymous note in his mail stating that a bank employee was making bogus loans. Moss asked the bank’s internal auditors to investigate the transactions detailed in the note. The investigation led to James Guy, manager of a North Queensland branch office and a trusted 14-year employee who had once worked as one of the bank’s internal auditors. Guy was charged with embezzling $1.83 million from the bank using 67 phony loans taken out over
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To Adjust or Not to Adjust: The Case of BNB Credit Union Background Information BNB Credit Union was founded by the Beiterman family over 100 years ago in the small town of West Klirk, GA. Since its founding, BNB has served the local population with mortgage, auto, and small business loans, as well as otherbanking services. Because of West Klirk’s remote location, BNB was the only bank used by most of the members of the community. In the last twenty years, BNB has struggled to maintain its
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Bed Bath & Beyond “The Capital Structure Decision” Advanced Corporate Finance Everaars, Tim 6160492 Groenenberg, Erik 6178944 Kruitwagen, Max 6359744 Veldkamp, Max 6270581 1. What is wrong with building up cash? Provide (at least two) reasons in favor and against keeping cash in the firm. You need a cash reserve for bad economic times. If business is not going very well, you’re making losses, you need some
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phases of the credit life cycle SM Case study: Snap-on Credit LLC Snap-on Credit LLC has been an Experian user for more than 10 years and relies on Experian data when making credit decisions within its leasing program. “I have seen a steady improvement in the quality of Experian data and products. Their customer service is excellent, and with access to their BusinessIQ platform, we can be more confident with our decisions.” — Steve Spinozza, Vice President of Credit Client
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maintenance of financial flexibility, and the preservation of an investment-grade bond rating. Complicating the assessment are low growth and technological obsolescence in the firm’s core business. The student must recommend an appropriate financial policy for the firm and, in support of that recommendation, must show the impact on the firm’s cost of capital, financial flexibility (i.e., unused debt capacity), bond rating, and other considerations. This case may be used to pursue a number of teaching
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manage the political and com mercial risks associated with international trade in emerging markets helped meet the need for export financing in the markets affected by world economic difficulties in 1998. For example, Ex-Im Bank initiated export credit programs for Korea, Thailand, and Indonesia. We estimate that the shortand medium-term portion of the Korean program alone will result in approximately $3 billion in exports of U.S. goods and ser vices over a two-year period — U.S. exports that would
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increase the corporate value of Deluxe Corporation. 2. How could Singh achieve financial flexibility? I think that Singh can achieve to financial flexibility by borrowing more money. As the calculations show in the case of downgrading their bond rating to an A, this will provide ample borrowing cap to the company, c. $556.9 million, which is 3.45 times bigger than the current total debt outstanding of $161.4 million. In this case the company should have the chance of keeping free funds in their
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10/11/12 Du Pont Proposed Capital Structure for Du Pont Corporation Uploaded by settypr on Jun 7, 2006 | | | Proposed Capital Structure for Du Pont Corporation The Du Pont Corporation was founded in 1802 to manufacture gunpowder. After nearly two centuries of operations, the company has greatly diversified its product base through acquisitions and research and development,, and is one of the largest chemical manufacturers in the world. In 1995, Du Pont had revenues of $42.2 billion and net
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CASE 1: 1) Global Bank, Pune was incorrect in its interpretation of UCP 600 article 14. The credit clearly stated that it expired at the counters of the negotiating bank and that the documents were to be sent to the head office of Global Bank. The credit did not contain any indication that presentation at the counters of Global Bank’s head office was for administrative purposes only, and that effective presentation to the issuing bank would only be considered when the issuing bank had received
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