Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Assume that you have recently joined a family owned renewable energy company in the UK and your first task is to advise the board on appropriate funding sources to secure the 100m that the company requires to fund a new investment project.

You have been asked to provide a report detailing the various funding sources available to the company to secure this level of funding. You have been further advised that the existing owners are all engineers
and as such your report should also include a glossary of terms.

Presently the firm has no debt and the shares of the firm are held privately by five brothers each holding 20% each. All of the brothers recognize the need to secure outside funding but are naturally nervous about the potential dilution of power. Note further that this may just be the initial round of funding and the owners are keen on options that provide subsequent access to funding at a later date.

Essentially the firm has to choose between debt and equity. However there are many different variants of each of these funding options. In addition to this it is no longer the case that a company would float on the stock exchange closest to where they are geographically located (see recent cases of luxury brands "floating" in Asia). In addition both options offer different characteristics regarding subsequent capital raising and their role in management motivation and incentive.

Your assignment should demonstrate the following qualities:
1. An in depth understanding of the available funding opportunities facing the company. These should be supplemented by exs.
2. Recognition of the issue of the reduction in "power" and how this could be mitigated.
3. Recognition of the pro's and con's of debt versus equity with regard to on-going funding.
4. Acknowledgement that both debt and equity comes in a variety of different forms. Again, these should be supplemented by exs.
5. Written in such a manner that a non-subject specialist (such as an Engineer could understand)
6. An understanding that market for IPO's has become a global one. Again, supplemented by exs.
7. An understanding of the potential role in each of these in funding channels in motivating management (if any).
8. Clear evidence of personal research and links to real world exs.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M925933

Have any Question? 


Related Questions in Basic Finance

Go to one of the web sites that contain video clips such as

Go to one of the Web sites that contain video clips (such as www.youtube.com) and view some video clips about using credit cards. You can use search phrases such as "credit cards." Select one video clip on this topic tha ...

Mm proposition i with taxesthe maxwell company is financed

MM Proposition I with Taxes The Maxwell Company is financed entirely with equity. The company is considering a loan of $1.72 million. The loan will be repaid in equal installments over the next two years, and it has an i ...

1 what is a capitalization rate what are the different ways

1. What is a capitalization rate? What are the different ways of arriving at this rate for an appraisal? 2. If investors buy properties based on expected future benefits, what is the rationale for appraising a property b ...

1 how many funds will be used by a state or local

1. How many funds will be used by a state or local government? 2. The budget for a state or local government is not as binding as a budget for a commercial business. Comment. 3. Which organization provides a service wher ...

After you have identified a research topic that you find

After you have identified a research topic that you find interesting and would like to explore, the next step is to visit the library to discover what researchers have already learned about the topic and what questions r ...

1 demonstrate your understanding of the relationship

1. Demonstrate your understanding of the relationship between logistical capabilities and competencies by tracing the evolution of logistical work to universal competencies. Does this logic have any practical application ...

1 in addition to the key words you should also be able to

1. In addition to the key words, you should also be able to define the following terms: third-variable problem directionality problem confounding variable random process placebo mundane realism experimental realism 2. De ...

Analyze a sales letter or email you receivebe on the

Analyze a sales letter or email you receive. Be on the lookout for sales letters you receive at home or through email. Bring one to class so you can discuss the example with other students. In small groups, discuss how t ...

1 define the following termsa optionb callc putd contingent

1. Define the following terms: a. Option b. Call c. Put d. Contingent claim 2. What are the similarities and differences between options and warrants? 3. What variables are important in determining call option prices? 4. ...

1 what is the goal of a media partnership2 name and

1. What is the goal of a media partnership? 2. Name and describe six basic emergency management audiences. 3. What three factors do DHS and its state and local partners need to address to improve its communications with ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen