Question
Forcefield Energy Inc. is a public corporation registered in the State of Ohio to provide heavy-duty and aeroderivative gas turbines for utilities, independent power producers,
Forcefield Energy Inc. is a public corporation registered in the State of Ohio to provide heavy-duty and aeroderivative gas turbines for utilities, independent power producers, and industrial applications for customers in the United States. The primary goal of the company is to maximize stockholder wealth by making financial and investment decisions that would increase cash flows and stock price. Last year, the companys stock price fell by 12% because of cash flow uncertainties, competitive markets, and unethical actions. The board of directors of the company has hired Joseph Sabatino, MBA to head the corporate finance department. Sabatino graduated from UC in 2016 with a masters degree in Strategic management. He has worked in the energy sector for 5 years and has experience in capital markets and financial institutions. To achieve the stated wealth maximization goal of Forcefield Energy, Sabatino has suggested to the board of directors of the company to expand its operations outside the United States to diversify risk, increase market share, and improve free cash flows. Forcefield Energy wants you to help them answer the following questions:
- Joseph Sabatino, the head of the corporate finance department, is planning to raise $10 million from the financial market to expand the business operations. Identify four major financial instruments that can be used to raise the needed long-term capital.
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