Question
ABC Ltd, a Japanese company, borrowed $100 million from CBA, and the former is having trouble paying off its debt. XYZ Corp. is an Australian
ABC Ltd, a Japanese company, borrowed $100 million from CBA, and the former is having trouble paying off its debt. XYZ Corp. is an Australian company with operations in Japan, and is looking to expand its investment in Japan. XYZ approaches CBA, proposing to construct a debt-equity-swap to buy ABC's bad debt. How would you construct a debt-equity-swap that are acceptable for all parties involved? Use numbers to illustrate your answer.
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
