Foundation Rehearsal script

Foundation Rehearsal script

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Unformatted text preview: these decisions On the Finance worksheet, issue a bond to fund the plant improvements. (Alternatively, use a mix of stock issue, bond issue, and depreciation). Tactic 5: Raising Money and Paying Debt What is this tactic about? Ultimately this tactic is about funding our assets. Assets are paid for with debt and equity. Consequences affect our performance ratios, our profitability, our growth, even our company's viability. How do we make the decisions? Bring up the Finance worksheet. We can raise debt two ways ‐ with short term debt from our banker, and with long term debt from our bondholders. Values are entered in thousands. For example, 4000 means $4 million dollars. We can raise equity with stock issues, and by retaining the profits we make instead of paying a dividend. Stock issues are entered in thousands. We can reduce debt by paying down our current debt or by paying bonds early. We can reduce equity by repurchasing stock or by paying a dividend. Dividends are entered in dollars per share. For example, $1.49 means we wil...
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This note was uploaded on 01/19/2014 for the course BA 101 taught by Professor Daseau during the Fall '06 term at University of Oregon.

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