In June 2001, the owners of the small fast growing sports advertising companies to assess the impact of financing their growth plans. Threshold Sports organizes professional cycling race and holds great franchises for several major U.S. cities. It is rapidly expanding the number of events he managed to finally build the professional cycling in the United States to a level in line with Europe. The growth outlook creates a financing requirement of $ 500,000. The case shows dre … Read more »

In June 2001, the owners of the small fast growing sports advertising companies to assess the impact of financing their growth plans. Threshold Sports organizes professional cycling race and holds great franchises for several major U.S. cities. It is rapidly expanding the number of events he managed to finally build the professional cycling in the United States to a level in line with Europe. The growth outlook creates a financing requirement of $ 500,000. The case provides three financing alternatives: debt, common stock and convertible preferred stock. The task for the students is to evaluate the alternatives and make a recommendation. The choice hinges primarily on the estimated value of the company.
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from
Kenneth Eades,
Dorothy C. Kelly
Source: Darden School of Business
25 pages.
Publication Date: Sep 21, 2001. Prod #: UV2490-PDF-ENG
Threshold Sports, LLC HBR case solution

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