Question

If General Mills, Inc. were to finance a growth initiative requiring research development and product launch, how should they finance the growth initiative? (i.e., cash, stocks, loans, equity financing, or a blend?)

Answer 1

Solution:

It is the type of Corporate finance, where organisation plan to raise money from various investment vehicle available in the market to manage its business expansion and research developement.

These are some sources of financing option for growth initiative

a; Company can go for bulky term deposits to get fixed guranteed return from market.

b: Company can go for venture capital investment option where return are higher but risk is there. It is done some startups in which initial risk is high but return are high. so this method may be useful.

c: Investment in stock markets i.e stocks of companies where highest retun are expected after market analysis. It might be long day investment or short term investment.

d: company can issue its share for fund raise and give return to shareholders.Company can issue debt or invesst in bulk in other company to get interest from debenture.

e: cryptocurrency investment is also another option avaliable i.e bitcoin,

f: Gold investment. is another option. return is also high.

g;investment in future, option,forward stocks are there.

h: corporate loan financing option, commercial bank loan and overdraft .