CA Foundation Exam > CA Foundation Questions > The underwriting commission in case of issue ...
Start Learning for Free
The underwriting commission in case of issue of debentures can’t exceed:
- a)3%
- b)2.5%
- c)4%
- d)5%
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
The underwriting commission in case of issue of debentures can’t...
According to Companies Act, underwriting commission should not exceed 5 per cent of the nominal value of a share and 2½ per cent in the case of debentures.
Most Upvoted Answer
The underwriting commission in case of issue of debentures can’t...
Vary depending on several factors such as the size of the issue, the creditworthiness of the issuer, market conditions, and the underwriting agreement between the issuer and the underwriter.
Typically, the underwriting commission is calculated as a percentage of the total value of the debenture issue. This percentage can range from 1% to 5% or more, depending on the complexity and risk involved in the debenture issue.
In addition to the underwriting commission, there may be other fees associated with the debenture issue, such as legal fees, marketing expenses, and administrative costs. These fees are usually borne by the issuer and can further impact the overall cost of the debenture issue.
It is important for issuers to carefully negotiate the underwriting commission and other associated fees with the underwriter to ensure a fair and competitive deal. Additionally, issuers should consider market conditions and the reputation and track record of the underwriter when selecting a suitable underwriter for their debenture issue.
Typically, the underwriting commission is calculated as a percentage of the total value of the debenture issue. This percentage can range from 1% to 5% or more, depending on the complexity and risk involved in the debenture issue.
In addition to the underwriting commission, there may be other fees associated with the debenture issue, such as legal fees, marketing expenses, and administrative costs. These fees are usually borne by the issuer and can further impact the overall cost of the debenture issue.
It is important for issuers to carefully negotiate the underwriting commission and other associated fees with the underwriter to ensure a fair and competitive deal. Additionally, issuers should consider market conditions and the reputation and track record of the underwriter when selecting a suitable underwriter for their debenture issue.
Free Test
FREE
| Start Free Test |
Community Answer
The underwriting commission in case of issue of debentures can’t...
Option A 2.5% is the correct answer in case of debentures
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer?
Question Description
The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer?.
The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer?.
Solutions for The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer?, a detailed solution for The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The underwriting commission in case of issue of debentures can’t exceed:a)3%b)2.5%c)4%d)5%Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup