(1) The company has $500 million in unsecured bonds that are due in the next 6 months. (In other words Target must pay off the bond holders.) They must decide what to do. There are two components to the decision: whether to re-issue new financing to replace the "lost funds" and if so, what type of financing to use. They could use all debt financing and reissue new bonds, or use equity financing and possibly issue stock, or issue a combination of the two. Or some other option not listed here. But their CFO has decided they must refinance at least $400 million of the $500 million