BUSF_A01.qxd

Chapter 8 • Sources of long-term finance Servicing costs Equity holders expect relatively high returns in terms of capital appre ...

Methods of raising additional equity finance the same period. Compared with other types of security, ordinary shares have on ave ...

Chapter 8 • Sources of long-term finance of them, rather than paying them out as dividends, is in effect a way of raising financ ...

Methods of raising additional equity finance Note that the conversion of retained profits into shares leaves the uses of funds t ...

Table 8.1Equity issues by London Stock Exchange listed businesses Issues by newly listed businesses Year 2000 2001 2002 2003 200 ...

Methods of raising additional equity finance funds. These could include existing shareholders. This is still a public issue, but ...

Chapter 8 • Sources of long-term finance Issues by tender seem to be increasingly popular. There have been several of them in re ...

Methods of raising additional equity finance effect on the price. The London Stock Exchange (2006) estimated this IPO discount a ...

Chapter 8 • Sources of long-term finance Once the business has decided on the amount of finance it needs and has set a price, it ...

Methods of raising additional equity finance The importance of the rights issue price How important is it that the business gets ...

Chapter 8 • Sources of long-term finance Existing shareholders are forced either to increase or to liquidate part of their share ...

Preference shares perspective, than are ordinary shares. Investors’ expectations of returns from preference shares are therefore ...

‘ Chapter 8 • Sources of long-term finance Tax deductibility of preference share dividends The UK tax system does not distinguis ...

‘ Loan notes and debentures are issued for periods outside that range. Indeed, perpetual loan notes (no redemption date) do exis ...

Chapter 8 •Sources of long-term finance Table 8.2Standard and Poor’s loan notes credit ratings Rating Explanation AAA The capaci ...

Loan notes and debentures Methods of issuing loan notes Loan notes can be issued in several ways, including direct issues to the ...

Chapter 8 • Sources of long-term finance It is common for those who lend money to impose conditions or covenantson the business. ...

Loan notes and debentures The relatively low interest rate risk associated with short-datedloan notes tends to mean that lower r ...

Chapter 8 • Sources of long-term finance 8.6 Convertible loan notes Convertible loan notesare securities that bear all of the fe ...

Asset-backed finance (securitisation) except that the loan notes continue after the warrant has been used to subscribe for share ...