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Corporate finance 3301
Clarkson Lumber Case
Cong Zhang March 3rd, 2015
In Clarkson lumber case, Mr. Clarkson experienced a shortage of cash because of
a repaid growth during recent years. The key problem in this case is whether Mr.
Clarkson keeps high growth speed by increasing borrowings or changes his business
to a low but relevant safe growth model. If Mr. Clarkson decides to keep high growth
rate, he has to raise money from new borrower, the Northrup National Bank. It not
only brings more financial risk to the company, but also limits company
development because of restrictions from new borrower. By looking over the recent
