1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
schepotkina [342]
3 years ago
6

Gracious Ltd." is a US based company. The company plans to tap the Indian capital market through its forthcoming issue of equity

shares. Outline the instrument through which it can raise funds from the Indian capital market.
Business
1 answer:
Mariana [72]3 years ago
3 0

Answer:

1. Global depository receipts

2. External commercial borrowing

3. American depository receipts

4. Foreign currency convertible bonds

Explanation:

1. Global depository receipts. When a company buys shares of a foreign company, a certificate will be issued by the local depository bank, which allows for security supported by the shares purchased.

Here, Gracious ltd could raise funds by buying of shares in a company in India hence gives the company an avenue to hold shares in foreign country.

2. External commercial borrowing. These are loans granted to viable companies outside of India who are venturing into commercial businesses. Before theses loans are given, there is what is called eligibility status; which must be reviewed and thus confirm with the reserved bank of India before such loans are given.

3. American depository receipts. These are negotiable capital market instruments, issued by a bank in the United States, which shows the number of shares held by a foreign company, trading in the US capital market. A company could use this as a way of raising funds in the India capital market because it is well backed by the bank in the country where the company is.

4. Foreign currency convertible bonds. Here, a bond is issued in a different currency distinct from the issuer's local currency. What this means is that the money being sought for by the issuing company comes in a foreign currency denomination.

You might be interested in
Consider the following scenario analysis:Rate of Return Scenario Probability Stocks BondsRecession 0.20 -4 % 16 %Normal economy
Vikentia [17]

Answer and Explanation:

a. Here it is reasonable to presume that the treasury bond generates high returns when there is a recession.  

b. The calculation of the expected rate of return and the standard deviation for each investment is shown below:

For stocks

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)  

= (29% × 0.30) + (18% × 0.50) + (-4% × 0.20)  

= 8.7% + 9% - 0.80%

= 16.9%

For bonds  

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)  

= (6% × 0.30) + (9% × 0.50) + (16% × 0.20)  

= 1.8% + 4.5% + 3.2%

= 9.5%

Now the standard deviation calculation is to be shown in the excel spreadsheet

For the stock it is 11.48%

And, for the bond it is 3.5%

c. The investment that should be prefer could be computed by determine the coefficient of variation which is shown below:

Formula i.e. used is

= Standard deviation ÷ expected return

For stock, it is

= 16.9% ÷ 11.48%

= 1.47

And, for bonds it is

= 9.5% ÷ 3.5%

= 2.71

Since for the bonds the coefficient of variation is greater so the same is to be considered

Therefore the bond should be prefer

4 0
3 years ago
Sunland Company purchases $50,400 of raw materials on account, and it incurs $61,300 of factory labor costs. Journalize the two
lisabon 2012 [21]

Answer:

A. Mar 31

Dr Raw materials $50,400

Cr Account pay $50,400

B. 31

Dr Factory labour $61,300

Cr Factory wages $61,300

Explanation:

Preparation of the Journal entries for Sunland Company

A. Since we were told that the company purchases the amount of $50,400 of raw materials on account this means that the transaction will be recorded as:

Mar 31

Dr Raw materials $50,400

Cr Account pay $50,400

B. Based on the information given we were told that the company incurs the amount of $61,300 of factory labor costs this means that the transaction will be recorded as:

31

Dr Factory labour $61,300

Cr Factory wages $61,300

6 0
3 years ago
Create an outline of your paragraph about your participation in the economy this week. describe how you were a consumer or produ
Ber [7]
<span>I contributed to the total supply of money in the economy because my demand for good and services were paid for using money and it made the supplier to have more resources with which he can manufacture or purchase more product so that consumers can purchase. In this my economic decision was using the money which I could have used for other purposes for the purchase of goods and services as I had to forgo something and also my account balance became reduced as a result of the decision i made</span>
5 0
3 years ago
Read 2 more answers
Which of these statements best defines organizational​ design?a.allowing top managers to make decisionsb.engaging in accomplishi
shusha [124]
<span>a. allowing top managers to make decisions, because the other 3 answers could all fall under the first answer. organizations are designed from top down. This makes a. the best answer.</span>
6 0
3 years ago
The Jewel Golf Club Company, which recently began using a kanban system, has had problems with high inventory levels of one of t
AfilCa [17]

Answer:

d. six or seven

Explanation:

Given that:

Daily demand for the grip = 3000 units

average waiting time = 0.20 day

processing time =  0.10 day / container

a container holds  = 150 grips

percentage of policy used = 10% = 0.10

The  objective of this question is to determine the amount of Kanban containers would Jewel require.

the amount of Kanban containers  = Demand ( wasting time + processing time)(1+percentage policy)/ amount of container holding

the amount of Kanban containers  = 3000( 0.2 + 0.1) ( 1+ 0.10)/ 150

the amount of Kanban containers  =  3000 ( 0.30) (1.10)/150

the amount of Kanban containers  =  990/150

the amount of Kanban containers  = 6.6

SO we can infer that the amount of Kanban containers would Jewel require if a 10% policy variable is used falls within the range of  six or seven.

8 0
2 years ago
Other questions:
  • Suppose that a monopolistically competitive restaurant is currently serving 240 meals per day (the output where MR = MC). At tha
    14·1 answer
  • Is the coffee market growing or shrinking and why
    6·1 answer
  • Consider your current company, or a company that you have formerly worked for, and describe and critique the budgeting processes
    11·1 answer
  • The minimum feasible​ long-run average cost for firms in a perfectly competitive industry is ​$48 per unit. If every firm in the
    8·1 answer
  • DG Loans, a mortgage lender, was charged with a discrimination lawsuit. It alleged that the company was offering loans at higher
    11·1 answer
  • Compute Emily's 2018 taxable income on the basis of the following information. Her filing status is single. Salary $85,000 Inter
    10·1 answer
  • Evidence-based HR refers to the practice of initiating disciplinary action against employees only in the presence of clear and d
    7·1 answer
  • Dr. Peabody paid $213 for repairs to his dental equipment. Which of the following statements is true?
    5·1 answer
  • Q.1Alexander Company purchased a piece of equipment for $12,000 and depreciated it for three years over a five-year estimated li
    7·1 answer
  • Can som on pls help me ​
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!