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Conaprole: Short-term Financing
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Reference: F-891-E
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Year: 2009
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Number of pages: 12
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Geographic Setting: Uruguay
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Publication Date: Jul 15, 2013
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Fecha de edición: Sep 5, 2013
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Source: IESE (España)
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Type of Document: Case
Description
A leading producer of milk-based products in Uruguay is considering the possibility of issuing short-term bonds in the domestic capital market in order to fund its inventory level and meet demand. The case explores the basic issues related to short-term financing alternatives, the advantages and disadvantages of issuing bonds, and the valuation of embedded options.
Learning Objective
To guide students in analyzing and interpreting the financial short-term financing needs of a business. 2. To enable students to explore the advantages and disadvantages of issuing short-term bonds in financial markets. 3. To develop students' skills in identifying and evaluating the embedded options offered to investors.