Assignment

Assume you are the CFO of a medium-sized company, and you are advising the CEO on some upcoming strategic initiatives that will have long-term implications. In other words, these are important decisions. The CEO has a lot of questions you must address. It appears we may need to raise more capital. Is expanding debt a good idea? Why or why not? Should our given assets impact this decision? In our economic environment, should we issue bonds, common stock, or preferred stock? What would be some pros and cons? Or should we forego this immediate opportunity and buy back some of our outstanding bonds or repurchase some of our common stock? What market conditions would make this a good move; what might be some pros and cons? Are we obligated to pay our shareholders a dividend? Make sure you address all the CEO’s questions in your paper.

In your paper,

· Examine whether expanding debt is a good idea.

· Compare the pros and cons of bonds, common stock, and preferred stock.

· Assess the value of immediate buy back of bonds versus repurchase of common stock in a variety of market conditions.

· Determine the merit of paying shareholders dividends.

· Summarize the strategic initiatives you would make for long-term success.

The Advising on Long-Term Financing Decisions Scenario paper

· Must be two to three double-spaced pages in length (not including title and references pages) and formatted according to APA Style as outlined in the Ashford Writing Center’s  APA Style (Links to an external site.).

· Must include a separate title page with the following:

· Title of paper

· Student’s name

· Course name and number

· Instructor’s name

· Date submitted