What is optionally fully convertible debenture?
Optionally fully convertible debenture is an instrument that does not yield interest in the initial period of say, 6 months. After this period option is given to the holder of FCDs to apply for equity at a "premium" for which no additional amourit needs to be paid. The option has to be indicated in the application form itself. However, interest on FCDs is payable at a determined rate from the date of first conversion to the second / final conversion and in lieu of it, equity shares are issued.
How do I make a likert scale questionnaire?
A Likert Scale Questionnaire is one where the subjects are asked to mark how much they agree with the point of view in the item. Rensis Likert devised it first.
An item in a Likert Questionnaire could be "People who commit murder should be executed."
The format for a five-point Likert scale could be:
# Strongly disagree # Disagree # Neither agree nor disagree # Agree # Strongly Agree The results are either analyzed separately, or the whole scale may be totalled or summed. Because of this, Likert Scales are often called "Summative Scales".
What type of loan is a convertible debenture?
This is the type of loan which could be converted later into goods or stocks. This permits the company who takes the loan to pay less interest rest then if it was without this option of conversion.
A debenture is typically redeemed at its maturity date, where the issuer repays the principal amount to the debenture holder. This can occur through a lump-sum payment or in installments, depending on the terms outlined in the debenture agreement. Additionally, issuers may have the option to redeem debentures early, often at a premium, under specific conditions. Redemption procedures and terms should be clearly stated in the debenture documentation.
What is debenture explain in simple term?
Debentures refers to discharging the liability on account of debentures in accordance with the terms of issue.
If someone holds a debenture what can they do with it?
With a debenture, a company can hold a debt with another. A debenture is a loan agreement where there is no collateral or assets involved. It is based on the promise and credit history of the company that it will be paid back.
Why companies issue debentures?
Companies issue debentures to raise long-term capital without diluting ownership, as debentures are a form of debt financing rather than equity. This allows them to fund expansion projects, refinance existing debts, or invest in new opportunities while maintaining control over the company. Additionally, interest payments on debentures are tax-deductible, which can provide financial advantages. Overall, issuing debentures can be a strategic move to leverage growth while managing financial obligations.
What is difference between equity and preference share?
ood job on your time line in 1763 the answer is they are all the same
Which companies have issued debentures in recent year?
reliance industries reliance industries reliance industries
What do you mean by ex-interest in issue and redemption of debentures in company account?
Whan compay purchase debenture from the open market
Do preference shares included in equity?
Preference shares are typically classified as equity on a company's balance sheet, as they represent ownership in the company and can provide dividends. However, their classification can depend on specific terms and conditions; for instance, if they have characteristics similar to debt (like mandatory redemption), they may be classified as liabilities instead. Overall, in most cases, they are included in the equity section of financial statements.
The view that separate accounting recognition should be accorded the conversion feature of convertible debt is based on the premise that there is an economic value inherent in the conversion feature or call on the common stock and that the value of this feature should be recognized for accounting purposes by the issuer. It may be argued that the call is not significantly different in nature from the call contained in an option or warrant and its issue is thus a type of capital transaction. The fact that the conversion feature coexists with certain senior security characteristics in a complex
security and cannot be physically separated from these elements or from the instrument does not constitute a logical or compelling reason why the values of the various elements should not receive separate accounting recognition. The fact that the eventual outcome of the option granted the
purchaser of the convertible debt cannot be determined at date of issuance is not relevant to the question of effectively reflecting in the accounting records the various elements of the complex document at the date of issuance. The conversion feature has a value at date of issuance and should be recognized. Moreover, the difficulties of implementation are not insurmountable and should not be relied upon to govern the conclusion.
What is the secured redeemable non convertible debenture?
Type your answer here... debenture, which is secured and redeemable and which is non convertible in future is called secured redeemable non convertable debenture