Amelia, I need you to put your other projects on hold and do a little work on

Question:

“Amelia, I need you to put your other projects on hold and do a little work on these financials for me.”
You follow Jeng Wong, your boss and special projects manager for Holdings Ltd., into his office. It is mid-January 20X3 and Jeng needs your assistance in reviewing some issues at Zebo Ltd., a subsidiary of Holdings Ltd., that have occurred during the year.
Your conversation with him is as follows:
Jeng: “These draft financials do not include the statement of changes in equity—I’m sure you can deal with that.”
You: “I can prepare that for you. Were there any new transactions that I should know about?”
Jeng: “Yes, the draft statements do not include two major areas—the retractable preferred transaction and all the stock option transactions. I will send you information on the following items for your review:
• Draft statement of financial position, prepared in accordance with IFRS [Exhibit 1];
• Retractable preferred shares of Zebo [Exhibit 2];
• Financing alternatives [Exhibit 3]
• Stock option information [Exhibit 4]; and
• The debt covenant arrangement [Exhibit 5].”

You: “I will have a look at all the information. Can you provide any additional information on the new financing?”

Jeng: “We need additional money to pay down the current debt of this company. Both the bond alternatives appear to be much cheaper. We will be making a decision on these alternatives in the next week or two, and the transaction will happen next quarter.
Please prepare a quantitative analysis of each option, including an analysis of the impact on the covenants.”
You: “Sure, Jeng.”

Required:
Prepare for your meeting with Jeng tomorrow.