I chose the role of Vice President of Finance for BCS Incorporated. Despite a difficult year, we were able to remain profitable. I was instructed to establish the best way to obtain 50 million dollars to fund additional facilities. The first decision my team had to make was choosing to go public or obtain a loan at a rate of 5%. Of course, launching an IPO may take a little longer, considering the proceeds will be used to fund the new facility, but it is interest free. Whereas, the loan is immediate, but there will be interest accrual, which will affect the bottom line. I chose to launch the IPO.
Secondly, I had to decide whether to consolidate the short term debt into long term loan at a 4.2% interest rate or payoff short term debt
Secondly, I had to decide whether to consolidate the short term debt into long term loan at a 4.2% interest rate or payoff short term debt