Question
As a recent graduate of UB you were hired an analyst in the finance department of Sun and Sea Investment Company., a new firm in
As a recent graduate of UB you were hired an analyst in the finance department of Sun and Sea Investment Company., a new firm in a profitable but risky high-tech business. Several growth opportunities have presented themselves recently, but the company doesn't have enough capital to undertake them. Stock prices are down, so it doesn't make sense to try to raise new capital through the sale of equity. The company's bank would not lend it any more money than it already has, and investment bankers have said that debentures are out of the question. The treasurer has asked you to do some research and suggest a few ways in which bonds might be made attractive enough to allow Flyover to borrow. Give a brief memo summarizing your ideas.(10 Points)
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