Readers Digest Debt or Equity Case Study https://drive.google.com/file/d/0B9Hsjq

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Readers Digest Debt or Equity Case Study

https://drive.google.com/file/d/0B9HsjqLaMo_xTnAyRGVGNUh6djg/view?usp=sharing

Should the accquisition be finianced with debt? equity? preffered stock? or a combination of these financing alternatives? How much would a loan rate potentially fluctuate in the future? What about financing with common equity?

Perform both a quantitiatve and qualitiave analysis of the firm. Determine whether Reader's Digest would be able to handle the proposed debt issue without investors and creditors deciding that the debt issue was too much for the firm. Weigh the costs & benefits of preferred and common equity against those of the debt issue. Provide the necessary information to make a solid recommendation in a report to "impress the big boss."

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