Describe which financing option you think is the best option

Assignment Help Corporate Finance
Reference no: EM131807736

Assignment

For the last six months, SunsTruck has partnered with the discount retail store to run a pop-up sunglasses stand in their stores for a big summer promotion. Due to the high customer purchase rate, the store has requested stock for five additional stores. SunsTruck needs to increase its capacity to meet the additional demand. In order to do so, SunsTruck needs additional money.

In this assignment, you will need to help determine which type of financing option is best for your company and train your junior accountants on the accounting cycle and financial statements.

INSTRUCTIONS

Step 1: Financing

The junior accounting team has assembled a Financing Report that (a) offers three options for securing the additional funds required to meet the new order; and (b) details the criteria Shaun, the owner of SunsTruck, would like you to consider when choosing one of the options. Based on this report:

• Identify which financing option you think is the best option for SunsTruck to pursue given Shaun's constraints. Explain the rationale for your decision.

1. Equity Financing
2. Debt Financing
3. Self-financing (or internal-financing)

Reference no: EM131807736

Questions Cloud

What important trends in business hardware are occurring : What important trends in business hardware are occurring? What relationship do you see happening between hardware changes and software?
What can be the benefits of adopting the industrial park : The company obtained land, build a production facility, and invited selected vendors on site.What can be the benefits of adopting the industrial park concept?
What is the effective interest rate : Assuming semiannual (every 6 months) compounding, what is the nominal annual interest rate? What is the effective interest rate?
Discuss paid the semiannual interest on the bonds : Accrued $1,948 of interest on the installment note. The interest is payable on the date of the next installment note payment
Describe which financing option you think is the best option : Describe which financing option you think is the best option for SunsTruck to pursue given Shaun's constraints. Explain the rationale for your decision.
Review a survey of registered voters : A local TV station claims that 60% of people support Candidate A, 30% support Candidate B, and 10% support Candidate C. A survey of 500 registered voters.
How much is available to pay towards the bank loan : what is the amount needed by the bank, or how much is available to pay towards the bank loan
Annual interest rate and the effective annual interest rate : Based on a 6-month interest period, compute the nominal annual interest rate and the effective annual interest rate.
Identify key competencies of lazada : Identify key competencies of Lazada and justify how the company capitalises its strengths to gain its competitive advantage in Singapore.

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!

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