Considering genesisrsquos aggressive growth plan sensible

Assignment Help Finance Basics

Reference no: EM13388108

Considering Genesis’s aggressive growth plan, Sensible Essentials suggested that its client should broaden the scope of financing beyond short-term loans and consider long-term financing options. These options would greatly enhance the ability of the operations management team to fund the capital investments and growth in operating expenses.

One option is selling more equity in the company. A public stock offering might be a possibility; however, a company as young and small as Genesis might be hard to value. Sensible Essentials believes that another private investor might require preferred stock dividends in order to mitigate some of the financial risk. Another option is a long-term bank loan.

Acting as the finance expert for Sensible Essentials, respond to the following:

Identify the sources of long-term financing for Genesis.

Analyze the potential costs and benefits of each option.

Explain how relative risk (from the investor’s perspective) impacts the cost of capital for Genesis.

Reference no: EM13388108

Questions Cloud

Evaluate the profit margin on sales ratio the return : digital relay has both preferred and common stock outstanding. the comshypany reported the following information for

Write the limits to us long-term economic growth is there : what are the limits to the u.s. long-term economic growth? is there anything that our government can do to address

Working capital measures of an organizations financial well : project accounting break-even point in units price per unit variable cost per unit fixed costs depreciationa 6240 53

Calculate the current and quick ratios for each of three : 1. edison stagg and thornton have the following financial information at the close of business on july

Considering genesisrsquos aggressive growth plan sensible : considering genesisrsquos aggressive growth plan sensible essentials suggested that its client should broaden the scope

Explain how should the government and producers balance : 1 how does vaccine distribution relate to key operations and supply chain management questions including quality

Consider a market of mp3 players write one or two events : consider a market of mp3 players. list one or two events related with this market which will cause the following

Support or contradict this statement given the realities of : support or contradict this statement given the realities of todays economy and the rapid changes occurring in business

General hospital has a current ratio of 05 which of the : general hospital has a current ratio of 0.5. which of the following actions would improve increase this ratiogt 1. use

User Account

All Pages