The case study of NewGrade Energy is based on data analysis from 2009. A privately owned company located in Regina, Saskatchewan that operates heavy oil upgrader, The Company’s ownership structure consists of the Government of Saskatchewan and Federated Co-Operatives Limited each owning 100% of the company and Crown Investment Corporation (CIC) and Consumer’s Co-Operative Refineries Limited (CCRL) both owning 50% (Ivey, 2009). At the time of its $ 770 million dollar, inception in 1988 CIC and its third-party lenders financed $150 million to the project and the government of Saskatchewan and Canada guaranteed the capital venture (Ivey, 2009). The government acknowledge that heavy oil refineries was uncharted territory but knew exploring the venture capital going forward would be a strategic investment for the future (Ivey, 2009). The strategy took an additional eight years to show profits in the industry because of various operational difficulties combined with depressed heavy and light crude price differentials (Ivey, 2009), however, since 1996 the company have re-bounded from the losses and has been profitable every since do to royalties being paid and upgrade fuels being utilized into natural gas. As a refinery they upgrade heavy crude oils into lighter more refine crude oils, which produces manufactured petroleum products, such as gasoline and diesel fuels. NewGrade upgrade refineries have earned the company a cash balance of $150 million to date (Ivey, 2009). In addition to the data provided limited information is known about the private company’s balance sheet.…