UFIDA (D) (TN)

By: F. Warren McFarlan, Ping He, Xiohua Wu and Lijuan Liu

Format:Print
| Language:English

Abstract

This case describes the financing decisions of a software company at difference stages of its development. Started from 1988 as an individual business, along with the "Reform and Open" policy of China, the firm has experienced tremendous growth, and has become a leading publicly listed software company with a more than 2.3 billion RMB revenue from principal business product sales as of 2009. The students are required to assess the capital requirement necessary to support the firm growth and the feasible financing tools available at each stage, and evaluate the firm financing decision. The students need to give an estimate of the stock price at the time the case is taught. Identifying a long term strategic investment plan becomes a key consideration in structuring the firm's next-round financing to achieve the goal of 10 billion RMB business revenue set by the CEO of the firm.