Unit 4 Discussion

Since the great recession of 2008, the Federal Reserve has had an aggressive policy of stimulus primarily with very low interest rates. This week we discuss cost of capital and project valuation. Given the even lower interest rates to combat the Coronavirus and its economic impact, what would the key considerations be for determining the method of financing for a major project. Assume that you are financing a major business acquisition (around $500-600 million). Use all materials that you have studied up to this week (i.e. issuing stock, debt financing, etc). Be sure to justify your answer with information that you have gained from this class and research (with citations).