Assignment:
Having previously identified the location of its greenfield investment. (The location I chose is CHINA)
Acme, a multi-billion dollar public MNE that is incorporated in the U.S., must next obtain external financing for its proposed overseas production facility.
It has been estimated that the acquisition will cost $500M and all funds will be secured in the U.S.
THE TASK AT HAND IS - to explain to this committee some of the financial aspects of this acquisition.
Deliverable: At the next steering committee meeting, you will provide a detailed presentation of the characteristics of the various external financing alternatives.
PLEASE Include the advantages and disadvantages of each.
PLEASE CONCLUDE Your report with a recommendation of which alternative (or combination of alternatives) should be used to finance the overseas investment.