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Convertible secured loan notes followup

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Convertible secured loan notes followup

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 14, 2018 at 4:02 pm #446650
    Avatarhumai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Investors find convertibles attractive because they will get the benefit of increases in the share price. Therefore they will accept lower interest payments each year. Therefore it costs the company less in interest.

    But what it has to do with equity, as in answer of mcq it is stated that they are less expensive to service because of their equity component.?

    April 15, 2018 at 10:07 am #446699
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    They are convertibles – convertibles can be exchanged for shares on maturity.

    You must watch the lectures!!!

  • Author
    Posts
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  • The topic ‘Convertible secured loan notes followup’ is closed to new replies.

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