Assessment of financial benefits of selected mezzanine financing instruments

Abstract

The paper deals with the problems of assessment of financial benefits of subordinated loans and convertible bonds. The paper authors aim to propose and verify methodology for assessment of the financial benefits of subordinated loans and convertible bonds. The introductory part characterizes the theoretical background of assessment of the financial benefits of the classic financing sources. Subsequently, the authors propose methodology for assessment of the financial benefits of subordinated loans and convertible bonds. The final part includes a case study that, using the proposed methodology, documents the outcomes of the comparison of the financial benefits of the mentioned instruments in the actual conditions of the Czech Republic.