Two sources of finance under consideration with reference

Assignment Help Financial Management

Reference no: EM131459628

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.

1. Analyse the costs of the two sources of finance under consideration with reference to; (assume all necessary details)

a) Dividends

b) Interest

c) Tax

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

a) budgeting

b) implications of failure to finance adequately

c) overtrading

Reference no: EM131459628

Questions Cloud

Teaching activities related to chasing : What is the biggest safety concern for teachers when teaching activities related to chasing, dodging, and fleeing?

Conversion to an ehr messaging system : Who should be involved in the conversion planning and implementation? Discuss specific roles of the people on the list and your reasons for selecting them.

How do group dynamics impact todays workplace : How do group dynamics impact today's workplace? Does corporate culture and leadership come into play? How so? Discuss.

What was the deviant behavior : What was the deviant behavior? What were the demographics of the group that witnessed the behavior? How did the group react to the behavior?

Two sources of finance under consideration with reference : Analyse the costs of the two sources of finance under consideration with reference to; (assume all necessary details)

Confront ethical dilemmas in your job as medical staff : Discuss the ethical (diversity) framework that you will apply when you confront ethical dilemmas in your job as medical staff.

What are store atmospherics : What are store atmospherics? Store atmospherics are physical characteristics and amenities that attract customers and satisfy their shopping needs.

What do you think are the functions of stratification : What are some ways in which our American culture stratifies people? See how long of a list you can come up with. Why do societies stratify?

Analysis of the future industry of the company : Select a company (or make one up) and do a brief analysis of the future industry of the company. Prepare a SWOT Analysis and compute the future turbulence.

User Account

All Pages