Long-term financing of companies Essay Example | Topics and Well Written Essays - 1500 words

Long-term financing of companies - Essay Example If a company that has already undergone an IPO needs to raise substantial capital again and it chooses to issue new equity in order to finance it, this is called seasoned equity offering (Butler, Grullon & Wetson 2005). Seasoned equity offerings come in different variations as regards the terms of the offer such as offering the stocks at investors-at-large or through a rights offerings. Under the rights offering, the company can issue rights to the purchasing the new shares to recipient investors on a proportionate basis (Weller 1962). These rights can either be sold or utilised depending on the recipient investors (Weller 1962). In 2008, Tesco Plc has seasoned equity offering that amounted to 130 million pounds; this is consist of 3 million pounds in issue capital, and 127 million pounds in share premium (Tesco Plc 2009). According to Tesco Plc, part of this seasoned equity offering is to issue shares as stock options are exercised. The rest of it is used for additional financing to the company. On the other hand, Marks & Spencer has issued 0.5 million pounds in equity (Marks & Spencer 2009). In contrast to Tesco Plc, this issue of shares by Marks & Spencer is due to exercise of options. However, seasoned equity offerings are used by the two companies in raising funds to finance their operations. One major advantage of this source of long-term funding is the huge amount of capital that large companies such as Tesco and Marks & Spencer have access in the form of the stock market. As regards the size of the capital raised, seasoned offerings in the stock market really provide huge advantages to these companie s. Seasoned equity offerings also have some shortcomings. For one, after an SEO, it is very usual that the stock price of the company gets lower because of the increase in price. There is a period of time before the price of the stocks will incorporate the information about the company, and this

The History of Rasselas by Samuel Johnson Essay

The History of Rasselas by Samuel Johnson - Essay Example This paper looks at the various incidences in which Samuel Johnson used satire in the book, The History of Russelas. Johnson in the novel The History of Russelas explores the life of the prince of the Abyssinia kingdom. The book, exploring the differences in the life of the prince in the valley where they had quality life and had access to any manner of luxury and that of the nobles, explores the satirical side of life in a palace. The comparison of the two different lives of the people living in the kingdom draws the irony of the different statuses of people in habiting the society. Although written in the 1880s, the differences in social status of the people in the society were apparent, just they currently exist. In its own diction, satire explores the various issues in the society that appear weird and funny. Out of normality, the family of the king was hidden in a valley, surrounded by mountains and forests. Whether for beautification purposes or for safety, the setting of the h ome was weird. What, with the seclusion form the hustle and bustle of the palace? Away from the people and into the wilderness, a place that did not have people, different kinds of animals inhabiting the region, that freely mingled with the servants of the kingdom. What was the essence of the family being kept far away from the normality of life? It did not make sense. Some may argue that the king found it safer there, while others may hold that the king wanted a peaceful life for his family. For people to live in harmony, they need to coexist together and show true brotherhood and sisterhood. The king chose to put his family in seclusion from the public and the reality of life. How were they supposed to coexist with the rest of the people if they were not used to living with them? They were used to the animals inhabiting the valley, and the usual servants who served them and took care of them from the time of their birth. They were not used to new faces, or new visitors. How were t hey expected to live with the rest of the people the day that they were left out of the valley? The prince was to marry someday, while the daughters would too get married. How were they supposed to find their companions if they did not leave the valley? For twenty six years, the prince never left the valley; he saw no new faces, neither the face of the sun outside the valley. How was he expected to rule the people after taking over from his father as the heir of the kingdom? The actions of the king did not make much sense. His intentions beat logic when a person thinks of the reasons why he chose to provide them with the kind of lifestyles that he deserved. Perhaps he was to get them their life partners. However, how were they to live from the time they were released form the valley? Maybe he intended to get them families and keep them there forever. Whichever plan that he had, the actions of the king did not make sense. The family, whether royal or not should have been left to free ly mingle with the society. Contrary to this, he would have left them walk around the kingdom and see other people and the kind of work and lives that they lived. The prince found the life of living in the valley boring, in contrast to the life of that of the people living outside the valley in the free world. As he grew up, not only did he get used to the music that was being played by