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Optimal Financing/Investment Strategy
Upon the evaluation of the information gathered in the past weeks, Team B has chosen to explore extensively the option of expanding in the African country of Ghana. In the following paper Team B will provide data correlated with the expansion in Ghana. Data included in the research includes foreign exchange rate data and the use of foreign exchange and cost of capital data used to determine appropriate capital sources. A sensitivity analysis was also conducted and different scenarios explored. Other data provided in the following paper relates to the valuation of the organization, alternative investment and financing decisions for the final recommendation and the development of a contingency plan.
Country choice
Ghana is well endowed with many valuable natural resources and is strategically well placed for access to markets in Europe and the rest of Africa. For many of the following reasons Learning Team B decided to invest and enter Ghana for this project. Investors can benefit from increased regional integration - which opens new potential linkages throughout West Africa - beyond the traditional boundaries that previously separated the region. They can also benefit from recent measures for improved access to markets in Europe and the United States. LT-B (Learning Team B) believes this is a prime opportunity to get into a high growth economy while it is in its infancy. LT-B will be positioned for growth in the service sector as Ghana’s overall economy develops.
The proposed reduction of tariffs between countries in the region and the new multilateral and bilateral agreements are expected to boost trade. The streamlining of import/export procedures and the imp ...