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Financial Management.
Abstract
Subject area
Financial Management.
Study level/applicability
Masters, Bachelors.
Case overview
In 2011, Real Sound Lab (RSL), an innovative audio technology company headquartered in Latvia, issued a bond to finance its needs. The face value of the issue was much smaller than what was typically encountered in the local market. The case describes how Viesturs Sosars, Chief Executive Officer of RSL, made this financing decision and how the difficulties at maturity were overcome.
Expected learning outcomes
Learn about financing options available for an small- or medium-sized enterprise in the case of inability to issue additional equity combined with an already high debt ratio. Learn about important considerations that should be made when deciding on the details of the bond issue and how these might impact the possible actions of the issuing company in case of being unable to repay the principal at maturity.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Details