Equity & Debt
Submitted by: Submitted by vernon123
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Pages: 4
Category: Business and Industry
Date Submitted: 01/21/2013 08:57 AM
|Running Head: Equity and Debt |
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|EQUITY AND DEBT |
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VERNON SCOTT
FIN301, MOD#5
Case Assignment
7 January 2013
TUI University
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Abstract
Learn about the advantages and disadvantages for AMSC to forgo their debt financing and take on equity financing. See why it was a good decision.
What are the advantages and disadvantages for AMSC to forgo their debt financing and take on equity financing? Do you agree with their decision?
American superconductor Corporation (AMSC) was preapproved for a $50 million secured debt loan from lenders for a high temperature superconductor wire and other corporate purposes. Before the loan was to close AMSC cancelled it and decided to raise money through equity. We will briefly learn about AMSC then examine debt vs. equity financing. Finally, you will see why I agree with the...
