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Note that you will be submitting two documents for this assignment. Parts 1, 2, and 3 make up one document, and Part 4 is a
Note that you will be submitting two documents for this assignment. Parts 1, 2, and 3 make up one document, and Part 4 is a second document. Description Select a company that is publicly traded on the New York Stock Exchange or NASDAQ Exchange and write a 1250- to 1500-word paper (with a typical font and spacing this will be between 5 and 6 pages) in which you present the following information:
- Background of the company: when founded, when went public, valuation, type of business, business partners, and other pertinent information about the company.
- Suppose that the company has decided to expand its production facilities and needs to raise $200 million.
- Discuss the current state of financial markets.
- Discuss the Federal Reserves current monetary policy and the effect it will have on sources the company will consider to raise the appropriate capital. Information on the Federal Reserve is available at The Federal Reserve
- Discuss sources of funding that may be available to your company.
- For stocks: Determine the cost of capital for raising funds through stocks. How will the stocks be valued?
- For bonds: Determine the bond rating for your company (use one of the rating companies and document the source for your rating). Determine the cost of capital for raising funds through the sale of bonds.
- Consider the use of money markets and through sources such as the Internet and current periodicals. Determine the cost of raising money through money markets.
- Consider the cost of a 10-year loan based at current bank interest rates available to your company.
- Prepare either a written a proposal (750 to 1000 words long, which will be 3 to 4 pages with a typical font and spacing) or a PowerPoint presentation with speaker notes (in notes view, 12 to 14 slides in length) with recommendations to your company on how it should finance capital acquisitions and expansions. Use the information you have gathered in your report for items 1, 2, and 3 above. Include any risks the company needs to consider when making its decision including exchange rate risks with any country to which production may be outsourced. Be persuasive in your presentation.
- Both the paper and the proposal/PowerPoint presentation should be documented correctly in APA format and should be written clearly, concisely, and correctly in terms of spelling, grammar, and punctuation.
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