Case Study
You are a financial advisor working with a $6 billion public corporation that is looking to raise an additional $200 million in equity (you are free to choose industry and project). There are three alternative ways to raise this capital: a bond issue (15 years maturity), a seasoned equity offering (SEO), and a rights offering.
In your essay, analyze each of these options and discuss the relevant questions that the corporation should consider when deciding which approach to take.
Begin maybe by providing a brief overview of the three alternative ways to raise capital: Bonds, SEO, and rights offering.
Then, you should discuss the relevant questions that the corporation should consider when deciding which approach to take.
Your analysis should weigh the pros and cons of each financing option and offer a recommendation for the corporation on which approach to take based on the information you have gathered.
