Financing PPL Corp.'s Growth Strategy Case Solution
The responsibility of making a financial strategy was put on Steve May who was the manager of Finance. May determines that a synthetic lease is the best option after considering all the options, but he must determine how to structure the special terms and whether to advocate a conventional or a small recourse artificial lease. The small artificial lease, in contrast to the conventional construction, needs a corporate guarantee that is smaller on the assets and has greater away-credit treatment, which is significant given small debt capacity and the business's growth strategy. Yet, finding investors willing to tolerate greater job danger will cost more and take more hours.
It was possible that not being successful may lead to postponing the building agenda of the company's, something PPL needs to avert given the national race to construct new generating plants.
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: December 17, 2001 PRODUCT #: 202045-HCB-ENG
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