General Motors: 1991 Equity Financing

Case Solution

Kenneth Eades
Darden School of Business ()

General Motors CFO Bob O’Connell is considering a variety of equity alternatives to fund a huge void in the coming years. His tasks are the development of a long-term financing strategy and the selection of the capital instrument to be issued immediately. Of particular interest to O’Connell is a new security called PERCS (Preferred Stock Cumulative Redemption).

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