Brief Analysis for Gateway Computers

Computations are NOT REQUIRED for the "brief analyses." for brief case analysis, answer the questions that are highlighted in yellow below. Discussion Questions 1. Evaluate Gateway's past financing choices. Have Gateway's financing vehicles been appropriate for the company? 2. How much money does Gateway need to raise now? 3. What impact would each option have on Gateway's earnings per share? 4. Perform a FRICT analysis of Gateway's financing options. What are the advantages and disadvantages of each of Gateway's financing options? 5. How could capital structure theory be used to make Gateway's financing decision? 6. What financing option should Gateway choose? 7. Are the convertible debt and preferred stock options fairly priced? (I will give the presenting group a scenario which they can use to price convertible debt.) Computations are NOT REQUIRED for the "brief analyses." for brief case analysis, answer the questions that are highlighted in yellow below. Discussion Questions 1. Evaluate Gateway's past financing choices. Have Gateway's financing vehicles been appropriate for the company? 2. How much money does Gateway need to raise now? 3. What impact would each option have on Gateway's earnings per share? 4. Perform a FRICT analysis of Gateway's financing options. What are the advantages and disadvantages of each of Gateway's financing options? 5. How could capital structure theory be used to make Gateway's financing decision? 6. What financing option should Gateway choose? 7. Are the convertible debt and preferred stock options fairly priced? (I will give the presenting group a scenario which they can use to price convertible debt.)