Difference between revisions of "Call provision"

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[[Capital gains yield]]. Results from changing prices and is calculated as (P1 − P0)/P0, where P0 is the beginning-of-period price and P1 is the endof-period price.
 
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*[[Capital intensity ratio]]. The dollar amount of assets required to produce a dollar of sales. The capital intensity ratio is the reciprocal of the total assets turnover ratio.
 
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*[[Capital market]]. Capital markets are the financial markets for long-term debt and corporate stocks. The New York Stock Exchange is an example of a capital market.
 
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*[[Capital rationing]]. Occurs when management places a constraint on the size of the firm's capital budget during a particular period.
 
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*[[Capital structure]]. The manner in which a firm's assets are financed; that is, the right side of the balance sheet. Capital structure is normally expressed as the percentage of each type of capital used by the firm such as debt, preferred stock, and common equity.
 
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*[[Capitalizing]]. Incorporating the lease provisions into the balance sheet by reporting the leased asset under fixed assets and reporting the present value of future lease payments as debt.
 
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*[[Cash budget]]. A schedule showing cash flows (receipts, disbursements, and cash balances) for a firm over a specified period.
 
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*[[Cash conversion cycle]]. The length of time between the firm's actual cash expenditures on productive resources (materials and labor) and its own cash receipts from the sale of products (that is, the length of time between paying for labor and materials and collecting on receivables). Thus, the cash conversion cycle equals the length of time the firm has funds tied up in current assets.
 
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*[[Cash discount]]. The amount by which a seller is willing to reduce the invoice price in order to be paid immediately, rather than in the future. A cash discount might be 2/10, net 30, which means a 2% discount if the bill is paid within 10 days and otherwise the entire amount is due within 30 days.
 
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[[Call provision]] is a provision that gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called then the company must pay the bondholders an amount greater than the par value, or a call premium. Most bonds contain a call provision.
 
[[Call provision]] is a provision that gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called then the company must pay the bondholders an amount greater than the par value, or a call premium. Most bonds contain a call provision.
  
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
:[[Call provision]]. Gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called then the company must pay the bondholders an amount greater than the par value, or a call premium. Most bonds contain a call provision.
 
:[[Call provision]]. Gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called then the company must pay the bondholders an amount greater than the par value, or a call premium. Most bonds contain a call provision.
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
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:[[Call provision]]. A provision in a bond contract that gives the issuer the right to redeem the bonds under specified terms prior to the normal maturity date.
  
 
==Related concepts==
 
==Related concepts==

Latest revision as of 23:17, 1 November 2019

Call provision is a provision that gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called then the company must pay the bondholders an amount greater than the par value, or a call premium. Most bonds contain a call provision.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Call provision. Gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called then the company must pay the bondholders an amount greater than the par value, or a call premium. Most bonds contain a call provision.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Call provision. A provision in a bond contract that gives the issuer the right to redeem the bonds under specified terms prior to the normal maturity date.

Related concepts

Related lectures

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