question archive Whether raising capital through stakeholder equity would be better option or through debt financing or they should raise capital via mix of both ? They need an understanding of several types of debt and their working, the way they are valued and rated
Subject:EconomicsPrice: Bought3
Whether raising capital through stakeholder equity would be better option or through debt financing or they should raise capital via mix of both ? They need an understanding of several types of debt and their working, the way they are valued and rated. Moreover, they want to know whether considering short or long-term debt will be beneficial for the company. Considering the option of shareholder's equity, they need to know : The type of shares that can be issued The implications for company if they issue different shares The risks that the company might face if they raise capital via equity. Moreover, the company also needs to know the implications that capital structure decision will have . To do so, you need to consider current company information and the current economic climate Current company information is attached to this unit in a separate folder named 'Additional resources" that includes company's: Business plan Financial report Employee Guidance Materials Marketing plan After analysing the information given in the additional resources listed above and evaluating the current economic trends, the company wants you to explain to them the best option (stakeholder equity, debt financing or mix of both) to raise capital considering current conditions and forecast of the economy. In your report the company wants you to explain them the reason for selecting one option over others, the implications that the company might have on their decision once made , considering the changes to the economy in future