Friendly Cards Inc.

West shore Investors and New EquityFrom the clock time constraints point of impression , there are generally two types of financial deliver activities , misfortunate term financial backing and long-term financing short-term financing is the type of finance that should be repaid in less(prenominal) than a year timeConcerning the two wefts we discussed earlier regarding the obtain of envelope-making and the eruditeness of seminal Designs demand lots of fund . Considering that brotherly card as well as experience hard time in their financial turn back , the financing option is required to finance the company s routine in the coming(prenominal) yearsThe only favorable option is to turn out the project from the West Coast investors that intend to buy the two degree Celsius ,000 shares of Friendly Cards at 8 per share .

It heart and soul , this option go out provide additional 1 ,600 ,000 that Friendly cards can use to finance the purchase of envelope-making equipment calciferol ,000 ) and the acquisition of Creative DesignsThis kind of rightfulness financing activities entrust gain importance as companies grow to be as well large for the owner to handle him /herself patronage the consequences of providing shareholders with portions of corporate self-will , this financing method could generate a significantly big amount of fund for new companies . moreover , when using the legality financing sources , companies will not be burdened with the incontestible contract t! o repay the borrowed amounts within a certain periodHowever , since the grant means the Friendly Cards will share the self-possession of Friendly Cards to the West Coast investors , there is other option that Friendly Cards attention could raise corking by debts . According to principles of corporate finance , the best roof structure is the one containing a favorable balance of debt and equity financing . Too little debt could set apart corporate potence for growth and too much debt could have proscribe personal effects on cash flow...If you want to urinate a full essay, order it on our website: BestEssayCheap.com

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