In June 2001, the owners of the fastest growing small businesses promote sport assessment of the financial consequences of their growth plans. Threshold Sports organizes professional cycling races, and has a large franchise race for several major U.S. cities. He tends to expand rapidly the number of events, which he manages in the end to build a professional cycling in the United States to a level in line with Europe. The prospects for growth creates the need for funding in the amount of $ 500,000. The case presents three alternative financing: debt, common stock and convertible preferred stock. The task for the student is to evaluate alternatives and make recommendations. The choice hinges importantly on the appraised value of the firm.Threshold Sports, LLC Case Solution
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by Kenneth Eades, Dorothy C. Kelly Source: Darden School of Business 25 pages. Publication Date: September 21, 2001. Prod. #: UV2490-PDF-ENG