International Expansion Financing for a Seoul D2C Cosmetics Brand
Overview
What this challenge is about.
Analyze three financing scenarios for a Seoul D2C brand, compute FX-adjusted costs, and recommend a capital structure. Earn a verifiable certificate.
The scenario
GlowUp Cosmetics has ₩13B in annual revenue (95% from South Korea), a 20% EBITDA margin, and a strong brand. It has no debt. The founders want to retain control but are open to minority equity. The US and Japan markets are expected to contribute 30% and 20% of revenue respectively within 3 years.
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.
Aligned coursework coming soon.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
- Capital Structure
Apply capital structure to solve real industry problems and demonstrate production-level capability.
- Cross Border Financing
Apply cross border financing to solve real industry problems and demonstrate production-level capability.
- Wacc Calculation
Apply wacc calculation to solve real industry problems and demonstrate production-level capability.
- Tax Shield Analysis
Apply tax shield analysis to solve real industry problems and demonstrate production-level capability.
- Currency Hedging
Apply currency hedging to solve real industry problems and demonstrate production-level capability.
Careers
Career paths this challenge builds toward
Completing this challenge demonstrates skills that transfer directly to these roles: