Long-Term Financing: Equity and Debt

Describe the role of stock exchanges and the requirements for a public listing.

Compare the financial characteristics, risks, and trade-offs of ordinary shares, preference shares, and debt instruments.

Calculate the market price of a fixed-interest bond using discounted cash flow.

Calculate the yield to maturity (YTM) of a bond given its market price.

Analyse the costs and financial implications of an initial public offering (IPO) for the issuing company.

Explain the mechanics of a rights issue and calculate the theoretical ex-rights price and the value of a right.

Describe the features of convertible bonds and calculate their conversion value.

Describe the features of warrants and calculate their value upon exercise.