Effects on debt service

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Reference no: EM13742271

REDNET,INC.: FINANCING AN ACQUISITION

The focus of this case is on financial strategy.

Instructions

Recommend which financing option they should take.  In your recommendations include the terms and size of each suggested tranche.

Support your recommendations with detailed spreadsheets that simulate the effects on debt service (and profitability) under the following scenarios:

  • Expected or normal cash flows
  • 5% decrease in cash flow
  • 10% decrease in cash flow

Your discussion supporting or justifying your recommendation will include data generated by your spreadsheets as well as consideration of the key characteristics of debt financing you have proposed.

You may use doc format for the writing and import your spreadsheets. Make sure the spreadsheets are readable. Do not shrink them to fit.  Your report should look very professional.

Reference no: EM13742271

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