Question

In: Finance

What other information might you need in order to make a funding decision?

What other information might you need in order to make a funding decision?

Solutions

Expert Solution

Information I will be needing in order to make a funding decisions are related to-

A. Determination of the past capital structure of my company which will be helpful for me in order to determine my overall capital structure for the project.

B. I will also have to proactively determine the macroconditions in respect to inflation and interest rate in advance which will be impacting our overall outflows

C. Funding will also be related to the the terms and conditions which are not putting high kind of restrictive covenants.

D. Funding will also be considered after rate of return which are generated by the company in the short run and the long run because company will be accepting cost of capital below that rate of return.

E. funding will also be considering various kinds of factors like the collateral and other debt which are held in advance

F. Funding will also relate to nature of the company whether it is conservative or highly aggressive.


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