ASSIGNMENT 1

Sigchi4life
Category:
Accounting
Price: $15 USD

Question description

. As a result, in exchange for their co-owned building ($200,000 fair value) and $150,000 total cash that they contributed to the business, each of the three (3) investors received 20,000 shares of $2 per common stock on August 15, 2013. Next, Donna, Rich, and Tammy need to decide on strategies geared toward obtaining financing for renovation and equipment. They have a grasp of the difference between equity securities and debt securities, but do not understand the tax, net income, and earnings per share consequences of equity versus debt financing on the future of their business. The goal is to raise $1,400,000. Rich proposes issuing shares of common stock in order to raise the $1,4M needed. Donna and Tammy propose issuing debt.  

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