Assignment Details:
The Sure Band Company, a Public Listed Company has just been awarded a contract to build dormitories for foreign workers affected by the Covid 19 and requires a sum of $2,000,000 to purchase the latest technological equipment and materials and another $300,000 for its operating expenses. Mr. Andy Lee, the Managing Director is tasked with the urgent job of looking for the cheapest source of finance to fund this project and has approached you to assist him.
As a Financial Executive, you are required to:
- Brief Mr. Andy Lee on the various types of financing suitable for this project.
- Explain to Mr. Andy Lee the differences between long-term and short-term financing.
- Advise Mr. Andy Leeon whether to source for long-term or short-term financing for the $2,000,000? Give reasons for your advice.
- Recommend the type of financing which the Company should use for the $300,000 operating expenses. Give reasons for your choice
