Evaluate the pro”s and con”s and determine if this was the best decision.
Recently Fantastic University undertook a building project which required $6.5 million of capital. The university had endowment funds of more than $1.5 million and a triple A bond rating. After careful consideration, the Board and Management decided to finance the project through operations rather than using the endowment or borrowing the funds. As an investment analyst, critique this decision. Evaluate the pro”s and con”s and […]