REPLY NICOLAS OLESLAGER-ORTON
Ka’iulani Kini K. Talbot
Liberty University Online
BUSI530-B07: Managerial Finance
Dr. Stephen Lacewell
September 25th, 2022
Author Note
Ka’iulani Kini K. Talbot
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to
Ka’iulani Kini K Talbot.
Email: kktalbot@liberty.edu
Reply to Nicolas Olenslager-Orton, Discussion Thread: Company Cash Flows
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REPLY NICOLAS OLESLAGER-ORTON 2
Nicolas, you presented a fantastic example by linking the discussion to an active
company and the history of their projects, past funding, and successful big projects. I was
interested in how you presented the idea of collecting funds for increasing cashflows through the
introduction of convertible bonds and wanted to introduce a concept should the convertible bond
insurance proposal was to fail.
Convertible bond insurances gained popularity for increasing cashflow last decade due to
their lower cost than bank rates. The reason convertible funds started to gain popularity is that
the failure of insurance had attracted investors' risk appetite due to immediate earnings and share
dilutions. In contrast, convertible bonds avoid these negative impacts (Chi, 2010). The advantage
of this type of bond is that they have the potential to convert into common shares.
Another possibility that has also gained popularity in the past decade is the inclusion of
adding an angel investor to the firm. Angel investors play a significant role for a company that
will need a short-term solution for the survival and growth of its new projects. Private equity
investors, including angel investors, have provided significant funding to nascent ventures
(Becker-Blease, & Sohl, 2015).
Your point of view as a CFO is comprehensive and realistic. Proverbs 22:29 say, “Seest
thou a man diligent in his business? he shall stand before kings; he shall not stand before mean
men” (KJV, 2016). You seem to have the right mindset to stand before the greatest and will not
back down until your company sees success.
REPLY NICOLAS OLESLAGER-ORTON
References
Becker-Blease, J. R., & Sohl, J. E. (2015). New venture legitimacy: The conditions for
angel investors. Small Business Economics, 45(4), 735-749. https://doi.org/10.1007/s11187-015-
9668-7
Chi, H. (2010). Convertible bond issuances are now in vogue. Vietnam Investment
Review, (978), 16. https://bi-gale-com.ezproxy.liberty.edu/global/article/GALE
%7CA233492271?u=vic_liberty&sid=summon
King James Version (2016). The holy bible. Christian Art Publishers
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