The leaders of the Fortune 500 company studied in our class want to acquire more funding and will need a business case. This business case will be featured in the financial plan you will create next week. To get yourself prepared for developing the financial plan, create an outline of your business case in which you do the following:
- Determine why funding is needed for the Fortune 500 company selected in week one.
- Determine the sources of funding. Consider self-funding, borrowing, equity, initial public offering, venture capital, common stocks, and bonds.
- Evaluate the requirements of each funding source you determine appropriate.
- Analyze the associated risks of each funding source.
- Decide which sources are the best fit for your company based on the requirements of each. Justify your decision.
- Estimate the cost of capital for both short-term and long-term funding sources. Research current estimated APRs for your selected sources of funding. Consider creating a table or chart to display this information.