Theory (Week 4) Flashcards
1
Q
Name 2 things about preference shares
A
- Preference shareholders don’t own the business
- Preference shareholders don’t have voting rights
- Preference shares are treated as debt finance
- Preference shareholders receive a fixed dividend
2
Q
Name 3 things that’re classed as ‘green projects’
A
- Waste management
- Energy efficiency
- Clean transport
- Renewable energy
3
Q
What is a coupon rate?
A
A fixed annual interest rate paid by a bond issuer (company) to the bondholder.
4
Q
What’s a convertible bond?
A
A bond the investor can exchange for a specific amount of company stock at a later date.
5
Q
Name 2 things about tax incentives
A
- They enable bonds to be issued at a lower coupon rate
- Available to lenders who buy green bonds
6
Q
Name 2 pros of convertible bonds
A
- Can be more attractive to investor
- Enables bond to be issued at coupon rate
