Suggested Solutions by Yingji LI https://padlet.com/yl522/BEA1010Answer Tutorial 7 Question 1, 4 and 6 en-us 2018-03-13 11:17:21 UTC 2018-03-13 16:12:13 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Manbag.png yl522 https://padlet.com/yl522/BEA1010Answer/wish/241294365 Dividend payments - optional]]> 2018-03-13 11:22:34 UTC https://padlet.com/yl522/BEA1010Answer/wish/241294365 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241294455 Interest payments - fixed, compulsory]]> 2018-03-13 11:22:50 UTC https://padlet.com/yl522/BEA1010Answer/wish/241294455 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241294710 Dividend payments are not tax-deductible]]> 2018-03-13 11:23:26 UTC https://padlet.com/yl522/BEA1010Answer/wish/241294710 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241294953 LARGE issue costs]]> 2018-03-13 11:24:18 UTC https://padlet.com/yl522/BEA1010Answer/wish/241294953 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241295093 Normally irredeemable --> Permanent funds]]> 2018-03-13 11:24:43 UTC https://padlet.com/yl522/BEA1010Answer/wish/241295093 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241295303 lower gearing level, lower financial risk]]> 2018-03-13 11:25:20 UTC https://padlet.com/yl522/BEA1010Answer/wish/241295303 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241295403 Easily traded, thus attractive to investors]]> 2018-03-13 11:25:38 UTC https://padlet.com/yl522/BEA1010Answer/wish/241295403 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241295640 Higher cost of ordinary shares, thus an increase in cost of capital]]> 2018-03-13 11:26:24 UTC https://padlet.com/yl522/BEA1010Answer/wish/241295640 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241295867 Diluted control]]> 2018-03-13 11:27:07 UTC https://padlet.com/yl522/BEA1010Answer/wish/241295867 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241295996 Interest payments are tax-deductible]]> 2018-03-13 11:27:32 UTC https://padlet.com/yl522/BEA1010Answer/wish/241295996 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241296110 Lower interest rate than straight bonds]]> 2018-03-13 11:27:51 UTC https://padlet.com/yl522/BEA1010Answer/wish/241296110 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241296227 If converted to shares, no funds would be needed on redemption]]> 2018-03-13 11:28:12 UTC https://padlet.com/yl522/BEA1010Answer/wish/241296227 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241296317 If share price increases, then conversion rate may be too generous]]> 2018-03-13 11:28:33 UTC https://padlet.com/yl522/BEA1010Answer/wish/241296317 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241296431 On conversion, gearing will be lowered]]> 2018-03-13 11:28:53 UTC https://padlet.com/yl522/BEA1010Answer/wish/241296431 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241296464 If converted, EPS can be diluted]]> 2018-03-13 11:28:58 UTC https://padlet.com/yl522/BEA1010Answer/wish/241296464 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241296633 Existing shareholders can realise value by converting shares into cash]]> 2018-03-13 11:29:29 UTC https://padlet.com/yl522/BEA1010Answer/wish/241296633 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241296750 If in efficient market, shares are efficiently priced]]> 2018-03-13 11:29:50 UTC https://padlet.com/yl522/BEA1010Answer/wish/241296750 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241296920 Broadening the investor base of a business]]> 2018-03-13 11:30:27 UTC https://padlet.com/yl522/BEA1010Answer/wish/241296920 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241297026 Attracting and retaining employees by offering incentives such as share options]]> 2018-03-13 11:30:43 UTC https://padlet.com/yl522/BEA1010Answer/wish/241297026 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241297074 Large issue costs]]> 2018-03-13 11:30:54 UTC https://padlet.com/yl522/BEA1010Answer/wish/241297074 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241297126 An IPO is TIME- and MONEY-consuming]]> 2018-03-13 11:31:07 UTC https://padlet.com/yl522/BEA1010Answer/wish/241297126 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241297354 High regulatory burden]]> 2018-03-13 11:31:52 UTC https://padlet.com/yl522/BEA1010Answer/wish/241297354 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241297630 Greater scrutiny from analysts and other businesses]]> 2018-03-13 11:32:39 UTC https://padlet.com/yl522/BEA1010Answer/wish/241297630 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241297675 Vulnerability - may be targeted for a takeover bid if share price falls]]> 2018-03-13 11:32:47 UTC https://padlet.com/yl522/BEA1010Answer/wish/241297675 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241306600 Realising the profile of a business]]> 2018-03-13 11:56:42 UTC https://padlet.com/yl522/BEA1010Answer/wish/241306600 yl522 https://padlet.com/yl522/BEA1010Answer/wish/241311540 Feasible?
  • Minimum market capitalisation requirement
  • at least 3 years trading needed
  • a minimum of 25% shares in public hands
]]> 2018-03-13 12:09:10 UTC https://padlet.com/yl522/BEA1010Answer/wish/241311540