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Taking into account the future earning potential of the

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Reference no: EM13573851

Means of Financing. Midas Corporation wants to build a new facility that will produce a new product line. The company expects the following costs to arise:

Cost to construct facility

$1,100,000

Funds needed to meet contingencies

$200,000

Annual operating costs

$225,000

The new facility will materially increase the corporate size. The asset and debt ratios of the firm are in conformity with industry norms. Taking into account the future earning potential of the new product line, the company's market price per share is less than what it should be. What is an appropriate means of financing the new facility?

Reference no: EM13573851

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