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Lester Electronics Considerations

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I do not have a financial background and need help with the following:

Using the attached scenario, please answer the following questions:

A) What are the pros and cons of each alternative you considered, considering the assessment against goals and the risk assessment?

(B) Which is your recommended approach considering the facts and other factors you considered? How will that solution resolve the issues you identified?

Please provide any references. Thanks

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A) What are the pros and cons of each alternative you considered, considering the assessment against goals and the risk assessment?

While there are several alternatives available, I will discuss three possible alternatives and their risk assessment. Lester Electronics can borrow money/credit line or issue bonds, issue bonds/stock, or simply issue stock.

LEI can create a long term financing plan by borrowing money or issuing bonds. LEI can also secure a credit line from various banks. This would increase LEI's liabilities by the inquiring interest expenses and large debt and interest payments. Given the large amount of debt Shang-wa has, this is not the best option.

LEI might consider issuing a combination of bonds and ...

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