1. Describe the current economic and financial condition we are facing today. How will the current economic and financial condition impact the future growth of businesses? If you were raising funds from outside (today) to support the growth of a company, why would you use warrants in debt financing. Explain how your financing strategy will increase the wealth of the stockholders.
2. Why do some companies issue convertible securities to raise funds to support the growth? How do these securities increase the value of the firm?
3. What is bankruptcy? What is the difference between liquidation and reorganization? What is the main benefit of reorganization? Identify and discuss the reasons for the selected firm's business failure and explain the company's reorganization strategies.