Friendly Cards Inc.

West beach Investors and New EquityFrom the m constraints point of persuasion , there are generally two types of financial backup activities , misfortunate term pay and long-term financing short financing is the type of pay that should be repaid in slight than a year timeConcerning the two resources we discussed earlier regarding the leveraging of envelope-making and the learning of seminal Designs demand lots of fund . Considering that brotherly tease as well as experience hard time in their financial turn back , the financing option is required to finance the company s routine in the forthcoming yearsThe only favorable option is to turn out the proposal of marriage from the West Coast investors that intend to buy the two degree centigrade ,000 shares of Friendly Cards at 8 per share .

It factor , 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 give 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 . what is more , when using the legality financing sources , companies will not be burdened with the incontestible contrac t to repay the borrowed amounts within a cer! tain 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 heed could raise corking by debts . According to principles of corporate finance , the best roof structure is the one containing a smashing balance of debt and equity financing . Too little debt could condition corporate potence for growth and too much debt could have forbid personal effects on cash flow...If you want to arouse a full essay, order it on our website: OrderCustomPaper.com

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