Discussion—Finance Organization and Long-Term Planning

Discussion—Finance Organization and Long-Term Planning
Considering Genesis’s aggressive growth plan, Sensible Essentials suggested that its client should broaden the scope of financing beyond short-term loans and consider long-term financing options. These options would greatly enhance the ability of the operations management team to fund the capital investments and growth in operating expenses.

One option is selling more equity in the company. A public stock offering might be a possibility; however, a company as young and small as Genesis might be hard to value. Sensible Essentials believes that another private investor might require preferred stock dividends in order to mitigate some of the financial risk. Another option is a long-term bank loan.

Acting as the finance expert for Sensible Essentials, respond to the following:

Identify the sources of long-term financing for Genesis.
Analyze the potential costs and benefits of each option.
Explain how relative risk (from the investor’s perspective) impacts the cost of capital for Genesis.

Write your initial response in 3–4 paragraphs. Apply APA standards to citation of sources. Times New Roman 12pt. Grading Criteria must be strictly followed!

Initial response:

Was insightful, original, accurate, and timely.
Was substantive and demonstrated advanced understanding of concepts.
Compiled/synthesized theories and concepts drawn from a variety of sources to support statements and conclusions.
Wrote in a clear, concise, formal, and organized manner.
Responses were error free.
Information from sources, where applicable, was paraphrased appropriately and accurately cited.

All Rights Reserved, usbestwriters.com
Disclaimer: You will use the product (paper) for legal purposes only and you are not authorized to plagiarize. In addition, neither our website nor any of its affiliates and/or partners shall be liable for any unethical, inappropriate, illegal, or otherwise wrongful use of the Products and/or other written material received from the Website. This includes plagiarism, lawsuits, poor grading, expulsion, academic probation, loss of scholarships / awards / grants/ prizes / titles / positions, failure, suspension, or any other disciplinary or legal actions. Purchasers of Products from the Website are solely responsible for any and all disciplinary actions arising from the improper, unethical, and/or illegal use of such Products.