Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2004-01-23
Length: 20 pages
Data source: Published sources
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Abstract
Nathan Johnson, chief financial officer of Canam Construction and Engineering Co Limited, must decide which of six debt options given in the case provides the lowest cost for borrowing. Five of the six options require swaps (currency, interest, floor-ceiling or combinations), making the relevant cash flows more difficult to determine than those associated with standard debt financing techniques. The case is written in such a way that any or all of the six options can be isolated for study depending on the analysis time available.
About
Abstract
Nathan Johnson, chief financial officer of Canam Construction and Engineering Co Limited, must decide which of six debt options given in the case provides the lowest cost for borrowing. Five of the six options require swaps (currency, interest, floor-ceiling or combinations), making the relevant cash flows more difficult to determine than those associated with standard debt financing techniques. The case is written in such a way that any or all of the six options can be isolated for study depending on the analysis time available.