Dundahead, is a limited liability Company that was formed several years ago with share capital of...

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Dundahead, is a limited liability Company that was formed several years ago with share capital of £100,000 in £1 shares. Three years ago, the Company received approval for listing of the NSE. In 2019, the Company was listed at the London Stock Exchange (LSE). Dundahead has an Expansion Programme that requires £400,000 in new financial Infection. The Finance Director is considering several financing options as follows: - - Issue 400,000 shares of £1 each. Issue 200, 000 shares of £1 each together with £1 each together with £200,000 in 10%. Debentures at par. Issue 50,000 shares of £1 each and £350, 00, 10% Debentures at Par. While there are several sources of finance, the financing options that Dundahead is considering require one specialized source. a) Explain:- i) ii) iii) iv) v) (5 marks) Financial Markets where Dundahead will obtain Finance Primary market of the financial Markets Secondary market of the financial market Page 1 of 4 The segments of the financial markets The Financial Market segment b) Briefly explain the money and Dundahead will have to use for issue Capital Market Instruments that are issued in exchange for capital and the Instruments Dundahead Ltd must be prepared to issue in each financing option. (17 marks) Dundahead, is a limited liability Company that was formed several years ago with share capital of £100,000 in £1 shares. Three years ago, the Company received approval for listing of the NSE. In 2019, the Company was listed at the London Stock Exchange (LSE). Dundahead has an Expansion Programme that requires £400,000 in new financial Infection. The Finance Director is considering several financing options as follows: - - Issue 400,000 shares of £1 each. Issue 200, 000 shares of £1 each together with £1 each together with £200,000 in 10%. Debentures at par. Issue 50,000 shares of £1 each and £350, 00, 10% Debentures at Par. While there are several sources of finance, the financing options that Dundahead is considering require one specialized source. a) Explain:- i) ii) iii) iv) v) (5 marks) Financial Markets where Dundahead will obtain Finance Primary market of the financial Markets Secondary market of the financial market Page 1 of 4 The segments of the financial markets The Financial Market segment b) Briefly explain the money and Dundahead will have to use for issue Capital Market Instruments that are issued in exchange for capital and the Instruments Dundahead Ltd must be prepared to issue in each financing option. (17 marks)

Answer rating: 100% (QA)

i Financial Markets Dundahead will obtain finance from the capital markets which consists of equity markets and debt markets The equity markets are wh... View the full answer