What are other alternatives apart from issuing share options

Assignment Help Financial Accounting
Reference no: EM132513209

Scenario

You have been hired as a financial consultant by Stark Enterprise Ltd. which is a publicly listed company. Stark Enterprise Ltd. intends to raise additional funds to expand operation overseas, a vision the CEO Mr. Tony Stark is very keen to pursue.

The CFO Mr. Phil Coulson suggested that Stark Enterprise issue share options that will convert to a new class of ordinary shares later. Tony Stark is not confident that issuing share options would be the best strategy to raise the additional funds. In Mr. Stark's request to you- the financial consultant, he would like to know your thoughts on the following matters:

Question 1: If Stark Enterprise Ltd. decides to issue share options, what effect(s) will this have on the basic and diluted EPS of the company?

Question 2: What are the other alternatives apart from issuing share options available for Stark Enterprise Ltd. to raise additional funds for this expansion plan without borrowing?

Question 3: Based on your discussion in (ii.) above identify at least TWO funding strategies you think would be better than issuing share options and why?

Reference no: EM132513209

Questions Cloud

Criminal procedure assignment : You are a judge in a federal district court where a man has been charged with possessing and distributing cocaine.
Determine what is the equipments after-tax salvage value : Nicole can sell the use equipment today for P5 million and its tax rate is 40%. What is the equipment's after-tax salvage value?
Prepare any journal entries that UBC Financial should make : Prepare any journal entries that UBC Financial should make as the result of information in the preceding report
Responding to public health emergenices : its agencies and departments in contrast to that of local and state public health agencies in preparing for and responding to public health emergenices.
What are other alternatives apart from issuing share options : What are the other alternatives apart from issuing share options available for Stark Enterprise Ltd. to raise additional funds for this expansion plan
Opioid medications in the communities : What external organizations might you work with to ensure the proper use of Opioid medications in the communities you serve.
Prepare reversing entry or write not reversed : Prepare entry to record the Dec. 31 adjusting entry (include computations-how you got amount of entry) Prepare reversing entry or write not reversed
Explain how psychoanalytic therapy would be used to treat : Explain how psychoanalytic therapy would be used to treat the client, how the client would respond to therapy, and the effectiveness of this treatment approach
What is the net investment cash out?ow for the project : What is the project-disposal cash flow (not including the annual operating cash ?ow)? What is the operating cash flow for the 1St year of the projects life?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare eliminating journal entries

Stork Corporation paid $15,300 for a 90% interest in Swamp Corporation on January 1, 2004. Prepare eliminating journal entries. Complete the consolidated worksheet for year ended December 31, 2005.

  What is the nature of the accounts that remainwith balances

What would be the problem if the closing entries were not made. After the closing process is completed, what is the nature of the accounts that remainwith balances? What is the nature of accounts that are “closed”? Would the Salary Expense account sh..

  Identify any errors in the partial balance sheet

Identify any errors in the partial balance sheet. added to the notes receivable, reported separately as a current asset, deducted from accounts receivable

  Entrepreneur determine the sales quantity

Break-even analysis will help an entrepreneur determine the sales quantity or number of products that must be sold in order for the business to generate enough revenue to pay its expenses, how can this help an entrepreneur avoid incurring loses over ..

  Question sports and surf label billabong has the hardest

question sports and surf label billabong has the hardest working brand in australia according to a new report on the

  Percentage-of-completion method

What is Whispering's 2020 journal entries using the percentage-of-completion method. (Credit account titles are automatically indented when amount is entered

  Dupont performance analysis and residual income

dupont performance analysis and residual income analysis.milano corporation has three operating divisions and requires

  Opportunity cost

What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent

  Present value methods of capital investment proposals

Determine the markup percent for the following group of merchandise. Which of the following are present value methods of analyzing capital investment proposals?

  Established chain of supermarkets

You are in charge of corporate lending for a bank. You have a choice to make a loan either to an established chain of supermarkets

  What are the tax consequences to euclid

What are the tax consequences to Euclid from the following independent events. Euclid bought 500 shares of common stock five years ago for $94,000. This year, Euclid receives 20 shares of common stock as a nontaxable stock dividend.

  What is correct make-or-buy decision

If Fornelli, Inc. can purchase the component part externally for $88,000 and only $8,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd