Youre an analyst in the finance department of Flyover Corp., a new firm in a profitable but risky high-tech business. Several growth opportunities have come
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You’re an analyst in the finance department of Flyover Corp., a new firm in a profitable but risky high-tech business. Several growth opportunities have come along recently, but the company doesn’t have enough capital to undertake them. Stock prices are down, so it doesn’t make sense to try to raise new capital through the sale of equity. The company’s bank won’t lend it any more money than it already has, and investment bankers have said that debentures are out of the question. The treasurer has asked you to do some research and suggest a few ways in which bonds might be made attractive enough to allow Flyover to borrow. Write a brief memo summarizing your ideas.
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Flyovers problem is that the firm is perceived as too risky fo... View full answer

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