How is Risk related to Net Present Value?
What is Net Present Value (NPV) and Risk?Net present value (NPV) and the risk have a strong relationship with each other. With an inappropriate… Read Article
Current Assets and Their Key Features
Current assets are those assets that are transformed into cash within one year. These assets include cash, marketable securities, account receivables/debtors, all types of… Read Article
Zero-Coupon Bonds – Features, Types, Advantages & Disadvantages
What are Zero Coupon Bonds?Zero-coupon bonds (ZCB), also known as deep discount bonds. These bonds do not carry any coupon rate. They are issued… Read Article
Ways to Redeem Debentures
Debenture can be redeemed in various ways by a company. It can pay a lump sum on the date of maturity or may pay… Read Article
Types of Debentures
There are various types of debentures like redeemable, irredeemable/perpetual, convertible, non-convertible, fully secured, partly secured, mortgage, unsecured, naked, first mortgaged, second mortgaged, the bearer, fixed,… Read Article
Benefits and Disadvantages of Debentures
Long-term debt financing is majorly categorized into term loans and debentures. Debentures are one of the familiar long-term sources of finance. They usually carry… Read Article
Advantages and Disadvantages of Preference Shares
Preference shares are hybrid financing instruments having several benefits and disadvantages of using them as a source of capital. Benefits are – an absence… Read Article
Types of Preference Shares
There are various types of Preferences Shares with differences in their structure. These are cumulative, non-cumulative, participating, non-participating, redeemable, irredeemable, convertible, non-convertible, callable, and… Read Article
Preference Shares and its Features
Preference shares are one of the special types of share capital having a fixed dividend rate. They carry preferential rights over ordinary equity shares… Read Article
Credit Appraisal of Term Loans by Financial Institutions like Banks
Credit appraisal of a term loan denotes evaluating the loan proposal to find out the borrower’s repayment capacity. The primary objective is to ensure… Read Article
Restrictive Debt Covenants on Term Loan Agreement
Debt covenants are certain statements in the loan agreement (or bond indenture) that restrict the borrower from doing certain things. The purpose of such… Read Article