Considering genesisrsquos aggressive growth plan sensible

Assignment Help Finance Basics

Reference no: EM13393997

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: EM13393997

Questions Cloud

Why is budgeting so important what are the appropriate uses : why is budgeting so important? what are the appropriate uses of a budget? how can budgets be mismanaged or

Therere four main methods for documenting specific business : there are four main methods for documenting specific business processes systems and so on. if your company asked you to

As an entrepreneur what are some important advertising : 1. as an entrepreneur what are some important advertising channels for a small business? include examples that

Determine the price level p in the economy illustrate how : consider a classical long-run economy described by the following equationsy c i gy al ka 50l 400k 100g 0t 0c

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

Assess the impact that innovation design and creativity : write a 700- to 1050-word paper that includes the following bull evaluates the impact that innovation design and

You are opening a new online store selling high-end pet : 1. you are opening a new online store selling high-end pet food. at the same time a person you know opens a similar

Within the discussion board arearespond to the following : within the discussion board area that respond to the following questions with your thoughts ideas and comments. this

You are surprised since you assumed that all entities are : at your first job after graduation you start working for a local cpa firm. the firms partner mentions that partnerships

User Account

All Pages