Explain the importance of financial planning

Assignment Help Finance Basics

Reference no: EM131956025

Question: Clariton Antiques Ltd have just been approached by'We Finance Limited', a venture capital organisation, with an offer to finance their expansion by offering the full 0.5m for a 20% stake in the business. Alternatively they can use the services of a finance broker to obtain a bank loan. The broker will charge a 1% fee on the amount secured and interest on the loan would be 2% APR payable over 10 years.

You are required to:

1. Explain the importance of financial planning for Clariton Antiques Ltd wift reference to;

a) budgeting

b) implications of failure to finance adequately

c) overtrading

2. Give an assessment of the information that will be needed to make decision on financing the takeover by;

a) The Partners

b) Venture capitalist [We Finance Limited)

c) Finance broker

Reference no: EM131956025

Questions Cloud

Calculate the volume of solids : Calculate the volume of solids (in m3) of the sample if the mass of the solid component is equal to 1 tonne.

What rate of return per quarter will the investor realize : A City issued $2,000,000 in bonds to renovate a building. The bond coupon rate is 6% per year, payable quarterly, with a maturity date of 15 years from now.

Prepare pantons journal entry to recognize the impact : Prepare Panton's journal entry to recognize the impact of this transaction. Describe how this transaction would afect Panton's books.

What is the momentum of the car before the collision : What is the momentum of the car before the collision? Answer in the units kgms-1

Explain the importance of financial planning : Clariton Antiques Ltd have just been approached by'We Finance Limited', a venture capital organisation, with an offer to finance their expansion by offering.

What is the amount of the equal and annual deposits made : If the yearly interest rate is 9%, during this entire period of time, what is the amount of the equal, annual deposits made on birthdays 5 through 15?

Would you describe ppi as having an identifiable philosophy : As a company, would you describe PPI as having an identifiable philosophy of moral values? How do its policies contribute to this philosophy?

Diver into the helicopter at a constant speed : How much power (in Watts) was supplied by the motor to hoist the diver into the helicopter at a constant speed?

Calculate the depreciation deduction and the book value : Calculate the depreciation deduction and the book value during each year of the asset's life using MACRS-GDS allowances.

User Account

All Pages