FNCE5014-Corporate Finance for Managers

Overview

In this assignment you are placed in the role of an analyst that is advising the CFO of a company that is in the process of considering how to finance an acquisition. In order to successfully complete this assignment, you will utilize the theory studied in class, information provided on Blackboard, and the Winfield Refuse Management case. As the case is self-contained you should not need to refer to other resources. The key learning

objectives of the assignment are:

1. Appraise levels of business and financial risk according to different debt policy.

2. Understand how firms are able to implement the capital structure decision.

3. Justify a financing decision.

Questions 

1. What are the annual cash outlays associated with the bond issue? The common stock issue?

2. How would you respond to each director’s assessment of the financing decision? 

3. How should the acquisition of MPIS be financed, taking into account the issues of control, flexibility, income, and risk? 

Format & Presentation

You should ensure that your assignment is well-presented and is as clear and concise as possible. There is no overall word limit, but your submission must not exceed 10-pages. Font size should be 11 or 12, with line-spacing of 1.5, and a minimum margin of 2.5cm on all sides. Presentation that assists in conveying information to the reader in a manner that is easy to follow is appreciated.