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Xpress-Oh is considering issuing another bond of EUR100 million to fund the new manufacturing facilities. However, in view of developing liquidity concerns the company cannot
Xpress-Oh is considering issuing another bond of EUR100 million to fund the new manufacturing facilities. However, in view of developing liquidity concerns the company cannot be certain of sufficient investor appetite for the offering. Xpress-Oh has therefore requested that you make an additional investment appraisal calculation, assuming capital rationing. Explain your investment recommendation based on this alternative investment criteria and include your calculations.
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