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BRILLIANT’S Long Term Financing and Valuation of Goodwill & Shares 183

domestic as well as foreign investors. The CncãY h¡Ÿ& BÝQ>aZoeZc ~m°ÊS> _mH}$Q> H$mo {ZåZ Xmo H¡$Q>oJarO
international bond market may be classified _| ~m±Q>m Om gH$Vm h¡:
into two categories:
1. Foreign Bonds: These bonds are floated 1. \$m°aoZ ~m°ÊS²>g: `o ~m°ÊS²g> EH$ n{Q>©Š`yca S>mo_opñQ>H$
by non-resident entities in a particular H¡${nQ>c _mH}$Q> _| Zm°Z-ao{gS>|{e`b EpÝQ>Q>rO Ûmam âcmoQ>oS>
domestic capital market. These bonds are {H$`o OmVo h¢Ÿ& BZ ~m°ÊS²>g H$mo gm_mÝ`V: {Og H¡${nQ>c
generally named on the basis of the capital
markets in which they are floated. The _mH}$Q> _| `o âcmoQ>oS> hmoVo h¢ CgHo$ AmYma na Cg Zm_ go
procedure for floating foreign bonds is similar OmZm OmVm h¡Ÿ& \$m°aoZ ~m°ÊS²>g Ho$ âcmoqQ>J Ho$ {cE à{H«$`m
to that of euro bonds. dhr hmoVr h¡ Omo `yamo ~m°ÊS²>g _| hmoVr h¡Ÿ&
2. Euro Bonds: Euro bonds are unsecured 2. `yamo ~m°ÊS²>g: `yamo ~m°ÊS²>g Agwa{jV S>oãQ> {gŠ`y[aQ>rO
debt securities issued and sold in markets h¡ Omo Bí`yAa H$s hmo_ H§$Q´>r Ho$ ~mha Ho$ _mH}$Q> _| IarXo OmVo
outside the home country of the issuer. They h¢ Am¡a Bí`y {H$`o OmVo h¢Ÿ& `o EH$ hr g_` _| EH$ go A{YH$
are underwritten and sold in more than one _mH}$Q> _| ~oMo VWm IarXo OmVo h¢Ÿ& CXmhaU Ho$ {cE, UK _|
market simultaneously. For example, a dollar
denominated bond issued in UK is a Euro Omar {H$`m J`m EH$ S>m°ca {S>Zmo{_Q>oS> ~m°ÊS> EH$ `yamo (S>m°ca)
(dollar) bond. NPP ~m°ÊS> h¡Ÿ&

Features of International Bond Market B§Q>aZoeZb ~m°ÊS> _mH}$Q> H$s {deofVmE§
The growth and popularity of both euro `yamo ~m°ÊS²>g Am¡a \$m°aoZ ~m°ÊS²>g XmoZm| Ho$ {dH$mg Am¡a
bonds and foreign bonds is due to the following cmoH${à`Vm {ZåZ H$maUm| go h¡:
factors:
1. These bonds are issued in bearer form 1. `o ~m°ÊS²>g EH$ {~`aa Ho$ ê$n go Omar {H$`o OmVo h¢
which facilitates their negotiation in the {Oggo BZH$m [ZJmo{gEeZ goH$ÊS>ar _mH}$Q> _| {H$`m
secondary market. Om gHo$Ÿ&
2. Euro bonds are not subject to any costly 2. `yamo ~m°ÊS²>g {H$gr _h±Jr VWm Á`mXm g_` coZo dmcr
and time consuming registration proce- a{OñQ´>oeZ à{H«$`m go g§~§{YV Zht h¡Ÿ& BgH$s
dure. The disclosure requirement is also {S>ñŠcmoOa [aŠdm`a_|Q> (àH$Q>Z H$s Amdí`H$Vm)
less stringent compared to domestic issues.
S>mo_opñQ>H$ Bí`yO H$s VwcZm _| H$_ O{Q>b h¡Ÿ&
3. Due to the volatility of interest rates, most 3. B§Q>aoñQ> aoQ> H$s ApñWaVm Ho$ H$maU, ~hþV go
of the international bonds are issued in BÝQ>aZoeZc ~m°ÊS²>g âcmoqQ>J aoQ> ZmoQ²>g Ho$ ê$n _|
the form of floating rate notes.
Bí`y {H$`o OmVo h¢Ÿ& 
VALUATION OF SHARES / eo¶g© H$m ‘yë¶m§H$Z

Q.23. How is a company's shares valued? Explain the need for its valuation.
H§$nZr Ho$ eo¶g© H$m ‘yë¶m§H$Z H¡$go {H$¶m OmVm h¡? Bg ‘yë¶m§H$Z Ho$ {bE Amdí¶H$Vm g‘PmB¶o&
OR
What are the factors affecting valuation of shares? Also explain the methods for the
valuation of shares with proper illustration. / eo¶g© Ho$ ‘yë¶m§H$Z H$mo à^m{dV H$aZo dmbo H$maH$

³¶m h¢? eo¶g© Ho$ ‘yë¶m§H$Z H$s {d{Y¶m| H$mo C{MV CXmhaU g{hV g‘PmB¶o&