Assignment task: You must answer all parts of this question.
a. Discuss the key factors that a lender should consider when thinking about whether to grant a long-term loan to a business.
b. GreenF is a private company established in Germany in the 2000s by Miriam Verstenn, an entrepreneur who currently owns 70% of the company. GreenF produces components for the green energy industry such as wind and solar energy farms and has seen strong growth over the years. The global energy crisis and transition put GreenF in a position of even greater growth potential, particularly at an international level. The company will require substantial new equity capital to finance this expansion. Advise Ms Verstenn on the attractions and risks of raising the required equity through an IPO of shares.
The suggested word limit for this question is 500 words.
Guidance for Question
Your answer to Question tests your understanding of the materials covered in Unit 2.
Part (a) requires you to identify the major aspects of the provision of a loan to a business from a lender's perspective.
You might find it useful to revisit the following material: