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Question: The Board of Directors of a successful company approved your recommendations and decided to invest shares in the other two companies recommended by you. In fact, based on your recommendations, they decided to invest more than their anticipated budget. The previously budgeted investment fund was £2,000,000 but the board wants to invest £1,500,000 in each of the two companies, which means that an extra £1,000,000 will be required. You will have to write a report on how to finance the required £1,000,000.
Instructions: Write a short report containing: Your report should include the following headings: 1. An introduction includes an explanation about the required £1,000,000 either short term or long-term finance. 2. A main body comparing the sources of funding, including their pros and cons. A justified recommendation of your choices of funding for the additional £1,000,000 using a range of criteria related to cost and risk.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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