Match Section A to Section B and provide brief explanations of why each particular financing was selected.

Section A

1. Leasing arrangement

2. Debts with warrants

Section B

1. Boudoir's Inc.: This company, a retail clothing store with three suburban locations in Atlanta, Georgia, is corporated, with each of the three Boudoir sisters owning one-third of the outstanding stock. The company is profitable, but rapid growth has put it under severe financial strain. The real estate is all under mortgage to an insurance, the inventory is being used under a blanket chattel mortgage to secure a bank line of credit, and the accounts receivable are all being factored. With total assets of $7 million, the company now needs an additional $450,000 to finance a building and fixtures for a new outlet.

2. Copper Mountain Mining Company: Copper Mountain Mining needs $12 million to finance the acquisition of mineral rights to south central New Mexico and to pay for some extensive surveys, core-borings, magnetic aerial surveys, and other types of analyses designed to determine whether the mineral deposits on this land warrant development. If the tests are favorable, the company will need an additional $12 million. Copper Mountain Mining's common stock is currently selling at $11, while the company is earning approximately $1 per share. Other firms in the industry sell at from 8 to 13 times earrings. Copper Mountain's debt ratio is 30 percent, compared to an industry average of 35 percent. Total assets at the last balance sheet date were $120 million.

Section B