Corporate bonds issuance

The increasing relevance of shareholder value and the corresponding awareness of the problem of an optimized capital structure has led to the significant rise of corporate bond issuance since the start of the European Monetary Union. Investors are able to diversify more broadly, maximize returns and invest beyond formerly existing frontiers. Issuers can reduce financing costs and increase the company s valne, which benefits bondholders. Thus concentration on shareholder value also generates bondholder value. 

EXHIBIT 2.1 New Issuance of Euro Corporate Bonds from 1998 to 2002... 

The key to the discounted cash flow methods is the determination of a proper interest rate. For this, two factors must be known. One is how much does it cost to obtain money The second is what is a reasonable amount of profit to expect from a plant The first depends on the source of money. This can be corporation earnings, the sale of stock, the issuance of bonds, the selling of assets, or borrowing from some outside source. The second depends on economic conditions. 

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