Design
International Expansion Financing for a Seoul D2C Cosmetics Brand
Overview
What this challenge is about.
Your task is to analyze three financing scenarios: (1) a Korean won-denominated venture debt, (2) a USD-denominated convertible note from a US investor, and (3) a JPY-denominated loan from a Japanese bank. For each, compute the all-in cost of capital including expected FX movements, tax shields, and hedging costs. Recommend the best option and propose a capital structure that includes a natural hedge (e.g., matching revenue currency with debt currency). Deliver a 15-page report and a financial model.
The Brief
What you'll do, and what you'll demonstrate.
Determine the optimal financing mix and currency denomination for GlowUp's international expansion that minimizes the weighted average cost of capital (WACC) and mitigates currency risk.
Earning criteria — what you'll demonstrate
- Calculate the cost of capital for different debt instruments considering tax shields and currency risk
- Evaluate the impact of capital structure on firm value in an international context
- Design a natural hedging strategy by matching revenue and debt currencies
- Analyze the trade-offs between debt and equity financing for a growth-stage company
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
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Roles this prepares you for.
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