Abstract

Tirstrup BioMechanics (Denmark) was considering an investment of $410 million in the United States, and Julie Harbjerg, Assistant Treasurer International for Tirstrup, was charged with evaluating different alternatives for raising the funds for the acquisition.

 

Teaching
This case requires the evaluation of a number of alternative debt alternatives which differ by currency of denomination, maturity, and interest rate payment structure. All alternatives must be evaluated in a single currency (the U.S. dollar) on an all-in-cost (AIC) basis for comparison. The acquisition funding needs require the student to determine the selection criteria desired by the company, rank-order the funding alternatives against the financing choices, and recommend a packages(s) which fulfills the funding needs. The calculations are not trivial, and solving the case will require a bit of time on the part of the student.

Case number:
A06-04-0007
Subject:
Finance
Year:
Setting:
Europe
Length:
11 pages
Source:
Library, general experience