Atlas Ltd is a FTSE250 company with over 500 employees. Atlas specialises in luxury yacht manufacture and is based in Naples Italy. It is one of the world leaders in its field. The senior management of Atlas want to expand their operations into South America and are considering building a subsidiary manufacturing hub at the port of Manzanillo Mexico, due to its skilled labour and links with East Asia.
The dockyard is expected to take two years to build and fit-out, with revenue expected to start at the end of the first year of production. The financial manager of Atlas is unsure of the best financing option(s) since the company has unissued capital stock and favourable debt market conditions. The favourable debt market is reinforced by Atlas strong business performance and below average industry gearing level.
You are currently an intern at Skansa Bank and your supervisor has asked you to:
PLEASE NOTE: Each student will be expected to produce a, which is applicable to
Above questions is basically on Capital Structures & acquisitions
Miller and Modigliani: Application to the question required with at least 2 graphs to state the benefits and the risk
Market imperfections to support report with a graph
Equity & Debts