Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Our Q&A platform provides quick and trustworthy answers to your questions from experienced professionals in different areas of expertise. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
Answer:
Answer to this question is explained below in detail.
Explanation:
This question is not complete. This has two parts a) and b). Part a) is complete and b) is incomplete. I have written down the complete question and will try to answer completely.
a) Briefly describe the differences among international bond, bank and equity markets.
b) Would you support an MNC that favors financing through bonds issues or would you rather support one that favors financing through stock issues?
Solution:
a) We are asked to differentiate between international bond, bank and equity markets.
All three terms are related to raising funds, lending or borrowing to raise the capital for some government or for any company.
Let's start with International Bonds first.
International Bonds : In this globalized world, a company can raise its capital through getting debt in the form of international bonds from international institutions over the assets value of the company. For example: XYZ company has a asset value of 10 million dollars, so it can get international bonds accordingly.
International Equity markets: Again due to interlinked world, companies and institutions all over the world can invest their funds in any company around the globe. And through equity markets companies can sell their shares to raise its capital depending upon the asset value of the company.
International Banks: International banks are international institutions which raise capital in particular country and have branches all over the world. It can lend funds to companies on particular interest rates. Furthermore, all those bonds are generated in these banks as well.
b) Supporting an MNC that favors financing through bonds issues or through equity markets or stock issues will depend on the debt/equity ratio of the company. If it is low, company should go for debt or bond issues. If it is high then it should opt for stock issues.
Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.
