Raising of Funds: Step Up Bonds vs Convertible Bonds
Assessment 2 for the Financial Accounting course at Queensland University of Technology is a business report on High PG Ltd, a production company with an average return on assets of 8.0%.
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Added on 2023-06-07
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High PG Limited is proposing to acquire further funds from the market in the form of debts or convertible equity whichever is beneficial. Two options have been explored: (a) Raising funds through issue of step up bonds with interest rates or coupon rates of 8%, 10% and 12%. (b) Convertible bonds which are convertible into equity of 15 million shares at the end of 3 year from settlement date. The article discusses the accounting treatment and impact on balance sheet of both options.
Raising of Funds: Step Up Bonds vs Convertible Bonds
Assessment 2 for the Financial Accounting course at Queensland University of Technology is a business report on High PG Ltd, a production company with an average return on assets of 8.0%.
Added on 2023-06-07
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