User Account

All Pages

Explain advantages and disadvantages of debt financing

Assignment Help Corporate Finance
Reference no: EM131476942

Proposal Assignment

Your client, SmartClean, Inc., is a cleaning service for office and industrial locations. SmartClean has been in business for 5 years and has shown steady revenue growth each year. The owner originally started the business using a business loan. The owner has $10,000 remaining on the loan after steadily making payments and has an excellent personal and business credit history.

The owner wishes to expand the SmartClean business into three new territories, needs an infusion of capital, and is looking for $50,000 in order to make the expansion.

The expected fixed costs for the current business and expansion is $75,000. SmartClean's average charge per job is $250.00. The variable costs per job is $35.00.

To complete this assignment, write a 5-page, APA formatted proposal that includes the following parts:

• Summary of client needs
• Advantages and disadvantages of debt financing
• Advantages and disadvantages of equity financing
• Recommendation for a financing strategy for SmartClean
• Complete breakeven analysis (based on given price analysis and cost)

Reference no: EM131476942

Questions Cloud

Why can plain-view searches be called nonsearches : Why can plain-view searches be called nonsearches? Identify and describe the situations when the three conditions of the plain-view doctrine apply.
Estimates of the regression coefficients and observe : Plot the time series of the estimates of the regression coefficients and observe how much they change over time.
Jesuit law-the rules of the society of jesus : Which court they use in their problems?? How they solve their problems? What are the rules? what surces they rely on the rules??
Interpret the first quarterly index : Interpret the first quarterly index. In other words, what is the value of the series in the first quarter as compared to the average?
Explain advantages and disadvantages of debt financing : Explain Advantages and disadvantages of debt financing, Advantage and disadvantage of equity financing and Recommendation for financing strategy for SmartClean.
Compute the mean of sample : List all samples of size 2 from left to right using without replacement, and compute the mean of each sample.
Consider production line with three single-machine stations : Consider a production line with three single-machine stations in series. Compute the throughput of this line if it is run as a CONWIP line with WIP level equal
Develop a brief country risk assessment : Develop a brief country risk assessment. Determine the political, economic, social, and capital risks associated with doing business in China.
Analyze the duty of loyalty in whistleblower cases : Analyze the duty of loyalty in whistleblower cases to determine to whom loyalty is owed and who shows the greater duty of loyalty.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd