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2014 CUT`` CURRENT ASSETS `ash Freceivables 3. 935, 4^] Inventory [Ither BIGGETE 1 19.5^ Total Current GEGET` 3. SONY LONG TERM ASSETS Note...
Case Study:
The Great Service Cleaning and Maintenance Company requires a capital infusion of $200,000. It is currently a closely held corporation with less than 50 shareholders. Although the shareholders are not all related to each other, they all know each other and they view the business as a family business. Please refer to the financial statements available here. The financial statements should be familiar to you because you performed a basic financial analysis of the company in Unit 1 of this course.
A number of alternatives are available to the company. It can:
- Obtain private debt financing
- Seek out a private investor(s) who would be willing to share ownership
- Seek out offers for a private
- Issue public debt (corporate bonds)
- Issue public common stock
In this paper, discuss the impact and implications of each alternative. It would be appropriate to include the topics and areas of discussion you covered in the case study in Unit 6 so long as it is applied to this specific case. Considering the size of the investment ($200,000) how does this impact the financial statements reviewed in Unit 1?
Superior papers will explain the following elements when responding to the assignment question:
- Provide a narrative about private debt, private transfer of partial ownership, private transfer of entire ownership, public debt issuance, and public equity offering.
- Provide a discussion of the impact of each alternative which would include issues of structure and cost of capital.
- The narrative will discuss the impact of an infusion of capital of $200,000 on the financial statements.
- Attachment 1
- Attachment 2