– Why are banks creating debentures at such high interest (upto 12% Goodwill finance, 10.5 Nepal Investment Bank) when FD is at about 7-8%?
– If the Cost of Funds in current scenario is less than 6%, how does debentures help the company as high interest debentures will increase COF?
– Does it have any effect on CD ratio?
– What would be the effect of debentures on the taxes?
– When a company issues a debenture, where is the received amount listed on quarterly report? Does it show up in other income? Assets? What about debenture payment for each year?
– Where is the amount to be paid each year on debentures listed? Does it show up in PL statement?
– What percentage of debenture does a company need to separate as debenture reserve?
– How does debenture redemption help increase dividend paying capacity when debenture is expired?
– After expiration of debentures, does it have any affect the EPS? Or does it only affect the distributable profit?