You have recently joined the Bluestone Inc. a world leading financial consultancy firm, as a junior finance and investment analysist. One of the seasoned hedge-fund manager and Investment Banker, Bill Adman who leads Bluestone is keen on bidding for the contract with Dun-En. You are part of a team at Bluestone, tasked to develop a strategy, best suited to raise the required £250 million. Specifically, you have been tasked to provide information on the latest trends in the financial markets i.e. equity/stock, debt market, private equity market, commercial lending and propose which market is most suitable to raise the required funds. In doing so, you are required to provide detailed analysis of the financial markets.
Consider the following information in building your argument: using Bloomberg dataset and Financial Times (and other reliable resources as advised) to analyse the current trends in financial markets.
(i) Provide an analysis on current trends in the equity market (8 Marks)
(ii) What route Dun-En shall take to the equity market to raise capital (consider traditional listing vs. the SPACs) (8 Marks)
(iii) Provide an analysis on current rates in the debt market i.e. bond yield (8 Marks)
(iv) Provide an analysis on current interest rates offered by the commercial banks (8 Marks)
(v) Consider private equity (PE) market and business angles (8 Marks)
Finally, conclude your argument by directly answering the following question: How Dun-En shall raise capital? Also, highlight the advantages and risks affiliated with the selected strategy.
(40 Marks)
Sample Solution
