Sunrise Ltd. dealing readymade garments is planning to expands its business operations to cater to international market. For this purpose , the company needs additional Rs.800,000 for replacing machines with modern machinery with higher productions capacity.It involves committing the finance on a longterm basis. These decisions are very crucial for any business since they affect its earning capacity in the long run. The company wishes to raise the required funds by issuing debentures. The debt can be issued at an estimated costs of 10% . Instead of issuing 10% . Debenture the company can issue Equity Shares for raising the fund. The financial manager of the company would normally opt for a source which is the cheapest.

1. Identify the problem 2.Think of a solution of the problem(set of alternatives to solve the problem) 3. Evaluate each alternative (advantages and disadvantages) 4. Select the best alternatives 5. Conclusion and recommendation of the alternative chosen 6.what is the role of financial manager during this case? How the financial management contributed to solve the case?

I. Case Study. Read the case and answer the following questions. Sunrises Ltd. dealing in readymade garments, is planning to expand its business operations to cater to international market. For this purpose, the company needs additional. Rs.800,000 for replacing machines with modern machinery of higher production capacity. It involves committing the finance on a long-term basis. These decisions are very crucial for any business since they affect its earning capacity in the long run. The company wishes to raise the required funds by issuing debentures. The debt can be issued at an estimated cost of 10% Instead of issuing 10% Debenture the Company can issue Equity Shares for raising the fund. The financial manager of the company would normally opt for a source which is the cheapest. Case Questions: 1. Identify the problem/s 2. Think of a solution of the problem (set of alternatives to solve the problem) 3. Evaluate each alternative (advantages and disadvantages) 4. Select the best alternatives 5. Conclusion and recommendation of the alternative chosen. Follow-up questions: 1. What is the role of financial manager during this case/situation? 2. How the financial management contributed to solve the case