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i need to get complete the auditing nad corporate accounting assignment.

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i need to get complete the auditing nad corporate accounting assignment.
Answered Same Day Dec 24, 2021

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Robert answered on Dec 24 2021
124 Votes
HA2032 CORPORATE ACCOUNTING ASSIGNMENT
Part A:
The report aims to provide a discussion on the various financing options available to dining
furniture products from overseas and their resultant need to meet this demand. It has been
determined that the funds required to meet this expansion are $60 million. The various
options available to finance these are through internal financing, taking debts from outside or
through raising equity. The first option should be to raise funds through internal financing
where it is required that the own funds of the business are used for expansion and when that
is not possible, it is advisable to go in for debt which may be traditional or alternative debt,
aising of equity or a blend of debt or equity. Debt financing essentially involves bo
owing
of a sum of money with a stipulation to return this principal along with an interest payment
with a view to pay the sum due in instalments. Traditional loans include loans from banks for
general purpose. Alternative debt includes debt from lenders who give loans according to
assets such as equipment loans and leasing, vendor financing and vendor merchant banks.
Equity is raising of finance from the public by giving them shares in the company and
allowing holding such shares as owners. Thus, it essentially involves giving ownership
interest to the holders. Then there is a blend of debt or equity in the form of mezzanine
finance, insurance companies and acquisition finance. Mezzanine is a mixed or hy
id form
of finance where initially a loan is given but there is an option to convert it into equity in case
where the loan is not paid back in time and in full to the lender. It is mainly used to finance
the expansion activities if a business. However, because of such a dual option to convert into
equity, this type of finance is very heavily priced.
Now, let us consider the positives and negatives of each mode of financing. The positive in
favour of internal financing is that the business is not required to pay any external costs,
waste no time in collecting the funds and there is sharing of ownership interest with any
outsider. However, it may not be always possible to resort to this method as the company
may have exhausted its own funds through investment in various assets and especially in
economic difficulties as are in the cu
ent situation, it is not viable to resort to this method of
financing. The main...
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