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* SIDE NOTE! The course I read is investments and financing * A joint-stock-company plans to make an investment of SEK 100 million and consider
* SIDE NOTE! The course I read is investments and financing *
A joint-stock-company plans to make an investment of SEK 100 million and consider two alternatives ways to finance the investment: Option 1: emit bonds with a maturity of 5 years option 2: emit shares Below is a summary of the company's balance sheet before investments and its financing: Balance sheet (unit SEK million): Assets 400 Equity 120 Long-term liabilities 250 Current liabilities 30 Indicate how the equity / assets ratio and the debt / equity ratio are affected by the two financing alternatives. The answer must contain a calculation of the key figures both before and after the investment has been made for both options. All calculations must be reported.
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