This is a begginer problem that I'm having trouble "seeing" the answer
to.  Any help is appreciated.

Intel Corporation, the computer chip giant has a big problem.  Last
November, the company began shipping nearly a million defective
motherboards for personal computers.  The related recall will cost the
company hundreds of millions of dollars.

Further information about Intel can be found at their website.  You
should also refer to their current financial statements in the 1999
Annual Report to Shareholders.
(http://www.intel.com/intel/annual99/f_summary.htm)

Make the following assumption.  The costs of the recall include
notification of purchasers, remanufacture of the motherboards,
shipping of replacement inventory, labor for parts replacement,
"goodwill" payments to purchasers, and regulatory reporting on the
recall.  Intel is downplaying the total cost.  However, the best
internal estimate is that this error will cost Intel approximately
$725 million and that this cost will be incurred in the second quarter
of 2000.

Further, you should assume that Intel will need to raise $675 million
in additional cash to service this recall.  You should assume that the
current cash, accounts receivables, and current investments (all
listed as current assets in the Balance Sheet) are committed to either
current operations or other mandatory projects.

Your assignment, as a senior financial manager, is to recommend the
optimal sources for this $675 million.  Be specific on the amount to
be raised from each source and give a justification for both your
identification of each source and the amount you intend to raise from
that source.  Do not overlook the issue of debt/equity balancing.