Use the video, case study, workbook (ESPECIALLY THE SECTIONS THAT EXPLAIN THE FINANCING TEMPLATE) and exhibits to answer the following questions:
What are the annual cash outlays associated with the bond issue and the stock issue?
Respond to each director’s assessment of the financing decision with a short paragraph – as if you are talking to each one in person during a meeting.
Interpret the EBIT Chart shown in the case – explain what it means. See Chapter 7 where it is explained.
Recommend the financing choice, using the Income, Risk, Control, Marketability, Flexibility, Timing grid as explained in the workbook.
video link:
