B230/FIN1000 Rasmussen Debt Equity & Retained Earnings Assignment

User Generated

nabab2018

Business Finance

B230FIN1000

Rasmussen University

Description

For this part of the course project, you will demonstrate your ability to identify how firms raise funds through the use of debt, equity, and retained earnings.

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.

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.

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:

  • Summary of client needs
  • Advantages and disadvantages of debt financing
  • Advantages and disadvantages of equity financing
  • Recommendation for a financing strategy for SmartClean
  • Complete breakeven analysis (based on given price analysis and cost)

Unformatted Attachment Preview

Introduction to Eagle Consulting and Financial Services, Inc. Eagle Consulting and Financial Services is a company offering a range of financial advisory and consulting services to individuals and business. Eagle focuses on solving clients’ most challenging issues with a cross-disciplinary approach that encompasses everything from enterprise improvement and financial advisory services to information management, leadership and organizational effectiveness, and turnaround and restructuring. Eagle’s vast experience and specialized expertise enables the company to serve a wide range of businesses and industries, whether they are healthy, challenged, or distressed, as well as business owners and other individuals. Services for Individuals The Wealth Management team at Eagle works with individuals to deliver services and solutions that help build, preserve, and manage wealth. The mission of every financial advisor is to understand the aspirations of each and every client and help them achieve their goals. Services provided to individual investors include: • • • • • Wealth planning Investment management Cash management Lending solutions Estate planning Services for Businesses The Business Advisory team specializes in a wide array of enterprise-wide solutions. The team tailors their services to the specific needs of the client, whether addressing an isolated business challenge; integrating resources across departments, divisions or continents; or serving in interim leadership roles to steer a firm through a period of change. The Eagle suite of services address all aspects of the business life cycle to help clients overcome complex operational and financial issues, uncover new opportunities, minimize risk, and maximize value. Services provided to businesses include: • • • • • Enterprise improvement Financial advisory services Information management Leadership and organizational effectives Turnaround and restructuring
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

here we go lemm...

Similar Content

Related Tags