Study on The Cost of Capital of Convertible Bond – the Case of A Listed Firm
| Autor: | Mei-Ying Huang, 黃美英 |
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| Rok vydání: | 2009 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 97 This thesis analyzes the cost of capital of convertible bonds, a common corporate financing instrument, by applying the cost of capital valuation model of Copeland, Weston and Shastri (2005), on a real case. From the point of view of cost of capital, the cost of convertible bond is higher than other financing instruments for the company, and the WACC of the company is also higher than its level before issuing. However, taking other internal and external factors into consideration, such as cash flow, financial structure, and the term and possibility of renewing the existing financing instrument, the company may still decide to issue the convertible bond as an option of financing instruments. This is not only to provide a reference for further study, but also to provide corporate a cost of capital valuation and decision making model when issuing convertible bonds. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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