What is meant by hierarchies in long-term financing and why are bonds higher in priority than shares?
Question:
What is meant by hierarchies in long-term financing and why are bonds higher in priority than shares?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
In the context of longterm financing hierarchies refer to the order of priority or ranking in terms of claims on a companys assets and cash flows in the event of liquidation or bankruptcy These hierar...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
Question Posted:
Students also viewed these Business questions
-
Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
In this question assume that p and q are atomic formulae. (a) Compare and contrast path formulae and state formulae in temporal logic. [4 marks] (b) Describe and contrast the meanings of F(G p) and...
-
The statement of financial position of Kingbird Limited follows for the current year, 2020: KINGBIRD LIMITED Statement of Financial Position December 31, 2020 Current assets $135,660 Current...
-
The travel time for a plane traveling at a rate of r kilometers per hour for 900 kilometers Write an algebraic expression for the verbal description.
-
For each of the following lists of premises, derive the indicated conclusion and complete the justification. For double negation, avoid the occurrence of triple tildes.
-
Table B. 11 presents data on the quality of Pinot Noir wine. a. Build an appropriate regression model for quality \(y\) using the all-possibleregressions approach. Use \(C_{p}\) as the model...
-
Filer manufacturing has 8.3 million shares of common stock outstanding. The current share price is $53 and the book value per share is $4. Filer manufacturing also has two bond issues outstanding....
-
Evaluate log3 1 243
-
Explain what is meant by Islamic financing. What are the different types of securities that are used in this sector? In this context, explain what is meant by a sukuk. Construct a practical Example...
-
Why do you think companies in certain countries prefer different forms of financing? Carry out your own research and comment on capital structure choice among firms in the G7 countries.
-
Find the expectation and the mode of the number of tall offspring. Suppose that the alleles A and a for height are additive, meaning that plants with genotype AA are tall, plants with genotype Aa are...
-
The local BMW dealer offers to sell you the new 7 series vehicle for 60 monthly payments of $735 (first payment 30 days from now). Given your FICO credit rating of 555 the BMW credit manager states...
-
Last year Brain Inc generated FCF of $1.3 M. Analysts estimate that its growth rate in the future would be stable at 3%, while it cost of capital will remain 10.3%. It has $5 M bonds outstanding and...
-
Charlie has invested $20 000 in an open-end mutual fund. The fund has a front-end load of 2%, and an expense ratio of 1%. If the fund earns a raw return of 14% over the year, how much can the...
-
Alex has invested 60% of his wealth into a risky portfolio with a standard deviation of 20%. 40% of his wealth has been invested in treasury bills with an expected return of 3%. What is the standard...
-
IRA is a law firm that prospers when other firms struggle. IRA has a beta of 0.4. If the interest rate on the T-bill is 4% and the expected return on the market portfolio is 14%, what is the expected...
-
You are the CEO of a company and you are considering entering into an agreement to have your company buy another company. You think the price might be too high, but you will be the CEO of the...
-
An auto-parts manufacturer is considering establishing an engineering computing center. This center will be equipped with three engineering workstations each of which would cost $25,000 and have a...
-
Homemade Leverage home body, Inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 50 percent debt. Currently, there are 5,000...
-
Homemade Leverage and WACC ABC Co, and XYZ Co, are identical firms in all respects except for their capital structure. ABC is all equity financed with $800,000 in stock. XYZ uses both stock and...
-
M&M Lamont Corp, uses no debt. The weighted average cost of capital is 11 percent. If the current market value of the equity is $25 million and there are no taxes, what is EBIT?
-
The phase of the satellite is 45d and the phase of the receiver is 165d. The wave length is 500 cm. (a) What is the phase difference? (b) What is the corresponding wavelength for the phase difference
-
a) If the air pressure at sea level is 100.725 kPa and the density of air is 1.25 kg/m3, calculate the thickness of the atmosphere (m) above the earth b) What gauge pressure is experienced by a diver...
-
A Cessna 172 with wing area (S = 174 ft2) and weight (W = 2,278 lb) have a documented lift curve slope equal to ( dCL/da = 0.088 1/degree). On a warm day, the aircraft is steady level flying (n=1) at...
Study smarter with the SolutionInn App