Raising Capital Cost Of Issuing Securities

Business & Finance, Finance & Investing, Finance
Cover of the book Raising Capital Cost Of Issuing Securities by Junaid Javaid, GRIN Verlag
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Junaid Javaid ISBN: 9783656748717
Publisher: GRIN Verlag Publication: September 23, 2014
Imprint: GRIN Verlag Language: English
Author: Junaid Javaid
ISBN: 9783656748717
Publisher: GRIN Verlag
Publication: September 23, 2014
Imprint: GRIN Verlag
Language: English

Seminar paper from the year 2013 in the subject Business economics - Investment and Finance, grade: B-, University of Bedfordshire, course: MSc FINANCE & BUSINESS MANAGEMENT, language: English, abstract: The central focus of this research project is to guide the relatively medium sized car dealership company towards making decision on the appropriate security financing option so that it would permit the given company to expand its operation while minimises its cost and maximises its profitability. In general there are three types of security financing (Equity Securities, Debt Securities and Asset-Backed Securities). Security Financing is also considers being a good financing source which involves the issuance of securities either in the stock market or in the capital market. In general, the companies' financial decision subject to the composition of its Capital Structure. The Capital Structure is made up of two factors: debt & equity. The trade-off theory was originated out of debate over the Modigiliani Miller theorem. The term trade-off theories was been used by different authors to state different group or similar related theories. The static trade-off theory confirms that the firm has perfect capital structure which they gain by trading off cost from the benefits of the use of equity and debt. The dynamic trade-off theory relates to the role of profit, role of retained earnings and path dependence. The concept of agency theory is emphasised more on the approach of concentrating on the nature of relationship existing between the company's shareholders (Principal) and their managers (Agents). Pecking order theory stressed that the company should first prefer to use internally generated income for the purpose of raising as it would restrict the company to expose itself towards financial leverage. The marketing timing theory state that firm value their equity in the way that when the stock price is perceived to be overvalued then they issue new stock and gain their share back. After the careful analysis of all possible options, it seemed better for the medium sized Car Dealership Company to go for option of debt security instrument known as Debentures for the purpose of pursuing expansion.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2013 in the subject Business economics - Investment and Finance, grade: B-, University of Bedfordshire, course: MSc FINANCE & BUSINESS MANAGEMENT, language: English, abstract: The central focus of this research project is to guide the relatively medium sized car dealership company towards making decision on the appropriate security financing option so that it would permit the given company to expand its operation while minimises its cost and maximises its profitability. In general there are three types of security financing (Equity Securities, Debt Securities and Asset-Backed Securities). Security Financing is also considers being a good financing source which involves the issuance of securities either in the stock market or in the capital market. In general, the companies' financial decision subject to the composition of its Capital Structure. The Capital Structure is made up of two factors: debt & equity. The trade-off theory was originated out of debate over the Modigiliani Miller theorem. The term trade-off theories was been used by different authors to state different group or similar related theories. The static trade-off theory confirms that the firm has perfect capital structure which they gain by trading off cost from the benefits of the use of equity and debt. The dynamic trade-off theory relates to the role of profit, role of retained earnings and path dependence. The concept of agency theory is emphasised more on the approach of concentrating on the nature of relationship existing between the company's shareholders (Principal) and their managers (Agents). Pecking order theory stressed that the company should first prefer to use internally generated income for the purpose of raising as it would restrict the company to expose itself towards financial leverage. The marketing timing theory state that firm value their equity in the way that when the stock price is perceived to be overvalued then they issue new stock and gain their share back. After the careful analysis of all possible options, it seemed better for the medium sized Car Dealership Company to go for option of debt security instrument known as Debentures for the purpose of pursuing expansion.

More books from GRIN Verlag

Cover of the book Über die Auswirkungen der Nutzung modulbezogener Facebook-Gruppen auf die Motivation im Studium by Junaid Javaid
Cover of the book Global Governance - Gewinn oder Risiko für den Nationalstaat? by Junaid Javaid
Cover of the book Pearl's twilight nature in 'The Scarlet Letter': Emblem of sin or self-fulfilling prophecy? by Junaid Javaid
Cover of the book Individualisierung nach Theodor Geiger by Junaid Javaid
Cover of the book Der Entwurf 1962 als Grundlage des geltenden Rechts und seiner Reform - Raub, Erpressung und räuberischer Angriff auf den Kraftfahrer by Junaid Javaid
Cover of the book Die Auswirkungen physischer Attraktivität auf die interpersonelle Anziehung by Junaid Javaid
Cover of the book Make-or-Buy-Entscheidungen in Industriebetrieben by Junaid Javaid
Cover of the book Residualgewinn und Economic Value Added - 'Wertorientierte Unternehmensrechnung' by Junaid Javaid
Cover of the book Die Relevanz des Konstruktivismus für das pädagogisches Handeln. Dargestellt an der Supervision im sozialpädagogischen Kontext by Junaid Javaid
Cover of the book Unkonventionelles Erdgas. Auswirkungen auf den globalen Erdgasmarkt by Junaid Javaid
Cover of the book Dopingsubstanzen und ihre Wirkungen by Junaid Javaid
Cover of the book Öffentlichkeit im Internet by Junaid Javaid
Cover of the book Would the UK Benefit from Leaving the EU at the Next Proposed Referendum? by Junaid Javaid
Cover of the book Stieffamilien by Junaid Javaid
Cover of the book Die Vorstrukturierung von bildungshomogamen Partnerwahlen durch Bildungswege by Junaid Javaid
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy