摘要 |
A business entity or investment entity increases the sale value of its own equity by forming a new hybrid investment unit that includes the combination of a debt instrument and the equity share. The debt instrument pays interest that is tax deductible to the business entity or investment entity and is not subject to the double taxation of dividends. The price of an ordinary equity share traded on an exchange is artificially reduced by the amount the cash dividend paid. The hybrid investment unit prevents the exchange from artificially reducing the equity in the unit because the debt in the unit pays interest and principal instead of dividends.
|