Problem
An open stock corporation type company must finance the investment for an amount of $650,000,000
The bank where you have a checking account has offered you the following options: A loan (without guarantees) at a rate of 13% per year, with semi-annual maturities for four years. Cost associated with the operation: $1,600,000.
A six-year term mortgage loan, with bimonthly maturities at an interest rate of 8% per year. Cost associated with the operation: $1,200,000.
A four-year financial lease contract, with monthly maturities at an annual interest rate of 10.3%. Cost associated with the operation: $800,000, which will be charged to the cost of the contract.
Issuance of bonds, those with a four-year term, with a coupon rate of 10% per year, use a discount rate of 12%.
What is the best alternative and develop operation?