Prompt: A privately owned US-based midsize biotech company that has gone public (can issue stocks and bonds) with projected sales of $2.8 billion over the next 10 years needs capital. In order to expand the companys R&D and global expansion, the company wish to borrow $23 million, but interest rates in the United States are unfavorable. To lower the companys cost of borrowing capital, the company turn to the global capital market.

You will wear three different hats in this homework: borrower, commercial/investment banker, and investor.

Your answers to Q1 to Q3 should be one page minimum double-spaced.

Q1. Imagine that you are the Chief Financial Officer (CFO) of this biotech company, would you advice your company to source the funds from the Eurocurrency market, the global bond market, or the global equity market? Explain your reasoning. If you pick one over the others, make sure you explain why the others are not the best option for the company.

Q2. Imagine that you are an Investment Banker with one of the top international banks and the biotech company is your client, would you advice the company to source the funds from the Eurocurrency market, the global bond market, or the global equity market? Explain your reasoning. If you recommend one over the others, make sure you explain to your client (the biotech company) why the others are not the best option.

Q3. Imagine that you are the Managing Partner of an international venture capitalist firm with significant investments in the Eurocurrency, Global Equity, and Global Bond markets. Assuming the bank approaches you with the request to invest in the biotech company by providing the $23 million, from a pure investor perspective, which of these prime markets would you more likely draw funds to lend to the biotech company? Explain your reasoning. If you pick one prime market over the others, make sure you explain why the other prime market are not the best option for the international venture capitalist firm.