Upload File

sources of long term financing

prev
next
out of 18
Download Sources of Long Term Financing

Upload: nitin-r-gond

Post on 03-Apr-2018

218 views

Category:

Documents


0 download

Report

TRANSCRIPT

  • 7/28/2019 Sources of Long Term Financing

    1/18

    SOURCES OF LONG TERM

    FINANCING

  • 7/28/2019 Sources of Long Term Financing

    2/18

    TYPES OF BUSINESS

    SOLEPROPREITOR

    PARTNERSHIPCOMPANY

    PRIVATELIMITED

    PUBLIC LIMITED

  • 7/28/2019 Sources of Long Term Financing

    3/18

    TYPES OF FINANCE

    SHARES

    ORDINARY EQUITY

    DEBT

    TERM LOANS, DEBENTURES & BONDS

    HYBRID FINANCE

    WARRANTS, CONVERTIBLES & OPTIONS

    ALTERNATIVE FINANCING LIKE LEASE,HIRE PURCHASE, VENTURE CAPITAL

  • 7/28/2019 Sources of Long Term Financing

    4/18

    SHARES

  • 7/28/2019 Sources of Long Term Financing

    5/18

    SHARES

    Types

    Authorised Share Capital Authorised share capital is the number

    of ordinary shares capital that a firm can raise without further

    shareholder approval.

    Issued Capital The portion of the authorised capital offered by thecompany to the investors is the issued capital.

    Subscribed Share Capital Subscribed share capital is the number

    of share (capital) outstanding.

    Paid-up Capital The actual amount paid by the shareholders is the

    paid-up capital.

    Par (face) Value Par (face) value is a value arbitrarily placed on the

    shares.

  • 7/28/2019 Sources of Long Term Financing

    6/18

    FEATURES OF SHARES

    Residual claim to income

    Residual claim on assets

    Right to control

    Pre-emptive rights

    Limited liability.

  • 7/28/2019 Sources of Long Term Financing

    7/18

    ISSUE OF SHARES

    IPO

    FPO

    RIGHTS ISSUE

    PREFERENCE SHARES

    QIB

  • 7/28/2019 Sources of Long Term Financing

    8/18

    IMPORTANT POINTS IN ISSUE OF

    SHARES

    BOOKBUILDING

    SEBI

    MERCHANT BANKERS

    STOCK EXCHANGES

  • 7/28/2019 Sources of Long Term Financing

    9/18

    DEBT

  • 7/28/2019 Sources of Long Term Financing

    10/18

    FEATURES OF TERM LOANS

    MATURITY

    NEGOTIATED

    SECURITY / COLLATERAL

    COVENANTS

  • 7/28/2019 Sources of Long Term Financing

    11/18

    TYPES OF COVENANTS

    ASSET RELATED

    LIBILITY RELATED

    CASH FLOW RELATED

    CONTROL RELATEDNEGATIVE

    PROVIDING INFORMATION

    MAINTAINENCE SINKING FUNDPOSITIVE

  • 7/28/2019 Sources of Long Term Financing

    12/18

    FEATURES OF BOND / DEBENTURE

    Attributes

    As a long-term source of borrowing, debentures have some

    contrasting features compared to equities .

    Trust Indenture When a debenture is sold to investing public, a trustee

    is appointed through an indenture/trust deed.

    Trust (bond) indenture is a complex and lengthy legal document

    stating the conditions under which a bond has been issued.

    Trustee is a bank/financial institution/insurance company/ firm of

    attorneys that acts as the third party to a bond/debenture indenture to

    ensure that the issue does not default on its contractual responsibilityto the bond/ debentureholders.

    Interest The debentures carry a fixed (coupon) rate of interest, the

    payment of which is legally binding/enforceable. The debenture

    interest is tax-deductible and is payable annually/semi-

    annually/quarterly.

  • 7/28/2019 Sources of Long Term Financing

    13/18

  • 7/28/2019 Sources of Long Term Financing

    14/18

    INNOVATIVE DEBT INSTRUMENTS

    ZERO COUPON BONDS

    DEEP DISCOUNT BONDS

    SECURED PREMIUM NOTES

    FLOATING RATE BOND

    CALL / PUT BONDS

    FCCB

  • 7/28/2019 Sources of Long Term Financing

    15/18

    HYBRID FINANCING

    INSTRUMENTS

  • 7/28/2019 Sources of Long Term Financing

    16/18

  • 7/28/2019 Sources of Long Term Financing

    17/18

    ALTERNATIVE FINANCING

  • 7/28/2019 Sources of Long Term Financing

    18/18


Financing of Long Term Care - webcontent.hkcss.org.hkwebcontent.hkcss.org.hk/el/CSK_HK_pm.pdf · Financing of Long Term Care ... Why should we discuss Long Term Care Financing?

Short Term Financing n Definition: financing for less than a year. n Two sources of short-term financing: Unsecured short-term financing Secured short-term

Chapter 14pthistle.faculty.unlv.edu/FIN301_Spring2020/Slides/Ch14_Full.pdf · The weights are based on the following sources of financing: Debt (short-term and long-term), Preferred

Various sources of financing

Debt Financing - Alternative Funding Sources

5 5 Chapter Sources of Short-Term Financing Slides Developed by: Terry Fegarty Seneca College

Intermediate term financing

Demystifying the Municipal Budget and Long Term ... - … · Demystifying the Municipal Budget and Long Term ... • Types of expenditures and sources of financing differ ... Long

Alternative sources of financing

New Financing Sources and Structures”

Short-Term Financing

Long Term Financing of Infrastructure - IIMA · PDF fileInfrastructure projects, given their long life, require long term financing. The main sources ... Long Term Financing of Infrastructure

EXTERNAL SOURCES OF FINANCING FOR THE CORPORATE SECTOR … · EXTERNAL SOURCES OF FINANCING FOR ... External Sources of Financing for the Corporate Sector in Macedonia, ... Proportion

Short Term Financing

Short Term and Long Term Financing

Sources Financing Nsb

Financing Short Term

AFFORDABLE HOUSING FUNDING SOURCES...This financing can include loans for new construction, preservation, rehab, acquisition, lines of credit, and/or longer term permanent financing

Sources of Financing

M5 L2 Financing Sources

Long Term Business Financing Strategy For A Pakistan Business · 2017-01-10 · Sources of Finance 9 Medium & Long Term Financing Short Term & Working Capital Financing 1 Debt Financing

Long-Term Financing

BBPW3203 FINANCIAL MANAGEMENT II · BBPW3203 FINANCIAL MANAGEMENT II. Content 1.1 Intermediate-term financing 2.2 Sources of intermediate-term financing 2.3 Cost of interest 2.4 Equipment

Sources of Financing for Public-Private Partnership .../media/GIAWB/PPI/Documents/Data-Notes/... · SOURCES OF FINANCING FOR PPP INVESTMENTS 2015• 2 4 The term government subsidies

Long-Term Debt Financing - · PDF file18 Long-Term Debt Financing Multinational corporations (MNCs) typically use long-term sources of funds to finance long-term projects. They have

Question Bank Nepal€¦ · Unit 2: Short-term Financing LH 15 Conceptual considerations and type of financing, short-term financing: choosing a short-term financing source, trade

1 PEMBELANJAAN PERUSAHAAN LECTURE 4a – SOURCES OF SHORT TERM FINANCING

Sources of Short Term External Financing (Working Capital)

Infrastructure Financing Instruments and Incentives - · PDF fileINFRASTRUCTURE FINANCING INSTRUMENTS AND ... Institutional Investors and Long-term Financing, ... alternative sources

Strategy, Investments, Financing Sources · Strategy, Investments, Financing Sources Conference on Financing the Environmental Dimension of Sustainable Development, 24-26 April, 2002,

FMGT_Long Term Financing

SURMHFWV Long-term Financing (up 100% financing

Long-Term Financing. Basics of Long-Term Financing

5 Sources of Financing

Long-Term Debt Sources of Financing