Discussion—Making Financing Decisions

What’s the best way for a company to grow? Suppose a company would like to move from a regional company to a national presence. This would require a significant capital commitment. The standard options available to this company include issuing long-term bonds or additional stock.

There may also be other creative ways to increase market share on a national level. This might include using venture capital funding, or expansion through the use of franchising.

Required:

Assume that a company would like to grow from a regional firm to a national firm and that this will require substantial funding, as the company would be expected to double in size by the expansion project.

Discuss the various ways for a company to finance expansion or growth. Explain the pros and cons of each method and make a recommendation to the company. In your response, be sure to include a discussion of issuing long-term bonds, issuing additional stock, and securing venture capital.