General Property Trust Harvard Case Solution & Analysis

General Property Trust Case Solution

It was in1994, General Property Trust, an Australian property investment trust, was anticipating future cash needs beyond those that the Trust could finance with internal cash flows. The supervisors of the Trust were contemplating a funding construction that was new whereby it'd sell call options on the components of the Trust. The choices’construction made it likely they would be exercised, and so investors would choose to purchase the components of the Trust. The supervisors had to ascertain the appropriateness of this financing scheme in light of the choices of the Trust and assess the suggested pricing of the choices that would be offered via a rights offering.

This is just an excerpt. This case is about  FINANCE & ACCOUNTING

PUBLICATION DATE: April 20, 1999

 

 

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