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Threshold Sports LLC. Case Notes/Outline.

Provide an introductory summary of the case and the purpose of the case study. Discuss the firms business and operating strategies, business approach/model, market environment, management goals and objectives, and the operational reasons for the capital financing needs within the firm. Discuss your approach to economic valuation of Threshold Sports, a rapidly growing firm, and provide your estimation/analysis of the firms economic value. Explore and compare the attributes of the various capital financing alternatives including debt, common equity, and convertible preferred stock. As part of your comparison, identify for each option, the level of flexibility it provides for the firm; discuss the risks associated with each option; identify the impact if any of each option on the firms profitability and economic value; discuss the implications of each option with respect to control of the firm; and determine which financing option offers the firm any timing advantage in entering the capital market. Recommend the capital financing option best suited for the firm based on your evaluation and how the recommended option enhances the economic value of the firm as well as how the economic value should be communicated to potential stakeholders outside the firm.

Managerial Economics Case Notes

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