Reference no: EM132473158

Point 1: you will demonstrate your ability to identify how firms raise funds through the use of debt, equity, and retained earnings.

Point 2: 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.

Point 3: 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.

Point 4: 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:

Question 1: Summary of client needs

Question 2: Advantages and disadvantages of debt financing

Question 3: Advantages and disadvantages of equity financing

Question 4: Recommendation for a financing strategy for SmartClean