factors to consider in mergers — OpenTuition Forums

Mmansoor10y ago

Good evening! one of the factors given is gearing. i can understand that issuing a loan stock will affect gearing but if a convertible stock is issued will it still affect gearing?and if yes, will it be to the extent of the debt part of it? thanks in advance!

John MoffatTutor10y ago#1

Yes - it will affect the gearing (until it is converted) and it will be a part of the debt.

Mmansoor10y ago#2

thanks!! :)

John MoffatTutor10y ago#3

You are welcome :-)

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