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

A 6-percent corporate coupon bond is callable in 10 years

A 6-percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder, if the issuer calls the bond? a. $60 ...

Assignment lasa npv sensitivity risk bias and ethics in

Assignment: LASA: NPV, Sensitivity, Risk, Bias and Ethics in Capital Budgeting Investment projects should never be selected through purely mechanical processes. Managers should ask questions about the positive net presen ...

What is the future value of 1200 a year for 46 years at 8

What is the future value of $1,200 a year for 46 years at 8 percent interest? Assume annual compounding.

Pam and mark are considering jobs where they will be paid

Pam and Mark are considering jobs where they will be paid strictly on commissions. The commissions is expected to be 5% on all sales of house water filters they close. Pam's goal is to earn a gross salary of $65,000 a ye ...

What would happen to interest rates on municipal securities

What would happen to interest rates on municipal securities, given each of the following scenarios? a. The government increases marginal tax rates. b. The tax exemption on municipals is eliminated. c. Corporate profits f ...

A company is planning to open 100 new outlets that are

A company is planning to open 100 new outlets that are expected to generate, in total, $15 million in free cash flows per year, with a growth rate of 3% in perpetuity. If the company's WACC is 10%, what is the NPV of thi ...

Prompt discuss government issued t-bills and munis consider

Prompt: Discuss government issued T-bills and munis. Consider in your paper the following criteria: Would you invest in government issued T-bills? Why or why not?  Are there specific munis you would or would not invest i ...

Siblings inc is expected to maintain a constant 62 percent

Siblings, Inc., is expected to maintain a constant 6.2 percent growth rate in its dividends, indefinitely. The company has a dividend yield of 8 percent. What is the required return on the company's stock?

Would a failure to recognize growth options tend to cause a

Would a failure to recognize growth options tend to cause a firm's actual capital budget to be above or below the optimal level? Would your answer be the same for abandonment, timing, and flexibility options? Explain usi ...

Both a call and a put currently are traded on stock xyz

Both a call and a put currently are traded on stock XYZ; both have strike prices of $50 and expiration's of 6 months. What will be the profit to an investor who buys the call for $4 in the following scenarios for stock p ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate