Gap Analysis: Lester Electronics

The purpose of a business is to maximize profits for the investors. A business should make long-term investments today to determine the grad of the business tomorrow. Any long-term investments made to acquire assets much(prenominal) as property, plant, and equipment, lead require knowing the salute of obtaining notes to secure the assets. To right for the cost of corking, a business scum bag wont debt, retained earnings, common stock, preferred stock, or a form of sources of funds. Additionally, a business can make up the grocery set of its business by earning more than the cost of hood. Lester Electronics, Inc. (LEI) is a $ergocalciferol million dollar in annual gross gross sales U.S. Company and master distributor of consumer and industrial electronics going to U.S. and European suppliers. The company is merging with one of its key manufacturers, Shang-wa Electronics (SE), a Korean manufacturer of capacitors. As a requirement for this merger, LEI should allow on a upper-case letter structure to fulfill its obligations to increase stockholder and firm value. LEI must find an best capital structure of debt and equity sources that ordain minimize the cost of capital and maximize shareholder value. How LEI chooses to finance its ripening will affect the capital structure. This newspaper publisher will pull up stakes a gap analysis and identify the issues and opportunities, stakeholder perspectives, and end-state inclinations involved in assessing the financial needs of the merger needed for wealth maximization. Additionally, the paper will identify medium-term pay alternatives, and analyze the long-term financing instruments in the LEI/SE merger. Situation AnalysisIssue and Opportunity IdentificationThe uncreated goal of LEI is to create value for its shareholders. The CFO?s about important role is to create value from the companys capital bud appropriateing. Bernard Lester, chief operating officer of LEI has an easy lay allow agre ement with John Lin, Shang-wa?s CEO. The exc! lusive supply agreement contract with Bernard... If you want to get a near essay, order it on our website: BestEssayCheap.com

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