You are a business consultant. You have just taken on a new client for Enterprises Pty...

You are a business consultant. You have just taken on a new client for Enterprises Pty Ltd, a manufacturer of cakes. Your client has just begun the process of setting up this business. A business plan has been produced, the target market identified, raw materials sourced and manufacturing premises located. The next step is to figure out how to finance the business, and the client has come to you for advice. Recommend the most appropriate sources of finance by using your own words.

1. List the most appropriate sources of finance for THIS business in the start-up phase. This should take into account the size and nature of this business, explain why these sources are appropriate and discuss reasons why other sources of finance would not be appropriate for this company.

2. List the most appropriate sources of finance for THIS business for future expansion. This should take into account the size and nature of this business, explain why these sources are appropriate and discuss reasons why other sources of finance would not be appropriate for this company.

Expert Solution

Here is solution of your question. If you have any query please comment in comment Box and will definitely resolve your query Thank you

jeff jeffy answered 7 months ago

Suppose you are a business consultant. You have just taken a client, a manufacturer of soap-dispensing...

Suppose you are a business consultant. You have just taken a client, a manufacturer of soap-dispensing bottle brushes. The client has decided to set the business up as private company. Everything is done, he just wants to know how to finance the business & has come to you for advice. Write a report for your client recommending the appropriate sources of finance for this business & also explain why this recommendations. And why other sources of finance would not be...

You have just taken a job as a consultant for a custom-built motorcycle company. The plant...

You have just taken a job as a consultant for a custom-built motorcycle company. The plant manager says he had read that a synchronized push supply chain strategy was associated with stable demand, and one of the goals for his company was to remove as much demand variability as possible. He recommends using a synchronized push strategy for their customized product. How would you reply to him? (2-3 paragraphs please) (5-6 sentences each)

You have just purchased a new home and have taken out a mortgage loan for $300,000...

You have just purchased a new home and have taken out a mortgage loan for $300,000 at an interest rate of 4.00% and a maturity of 30 years. You will make 360 equal monthly payments. What is the amount of your monthly payment? Please fill in the amortization schedule below for the first two months (month1 and 2) of the 360 months that you will be paying on the mortgage. Hint: PVA = Payment [1-(1+r)^-N / r] Please fill in...

You are a business consultant at a small consulting firm in Sydney Australia. A client Ben...

You are a business consultant at a small consulting firm in Sydney Australia. A client Ben McDonald from office supplies retailer “Office Storeroom” has contacted you to ask for your help. Ben is the newly appointed sales manager at Office Storeroom. You arrange a meeting with Ben at a local coffee shop. During the meeting Ben explains that Office Storeroom is the longest running office supplies company in Australia, having started business in 1973. They pride themselves on providing the...

You are a consultant who was hired to evaluate a new product line for Gupta Enterprises....

You are a consultant who was hired to evaluate a new product line for Gupta Enterprises. The upfront investment required to launch the product is $ 5 million. The product will generate free cash flow of $ 0.74 million the first year, and this free cash flow is expected to grow at a rate of 4 % per year. Gupta has an equity cost of capital of 10.7 %, a debt cost of capital of 5.14 %, and a tax...

Assume you have just taken out a new home mortgage. You will borrow $200,000 and make...

Assume you have just taken out a new home mortgage. You will borrow $200,000 and make equal annual payments for 20 years. a. If the interest rate is 10% per year, how much will the payments be if you pay interest on the unpaid balance each year? b. Construct an amortization schedule for the first two years. (There should be 5 columns: end of year, Payment, interest, principal repayment, balance; remember, you borrow today, the end or year 0) c....

You have just gotten a new audit client that had been audited by another firm for...

You have just gotten a new audit client that had been audited by another firm for many years. In assessing how effective or ineffective the current internal controls are, what factors will you examine?

You have been selected as the consultant on a risk-related project for a client. The Chief...

You have been selected as the consultant on a risk-related project for a client. The Chief Risk Officer has asked you to prepare notes on common risk management techniques for business continuity and planning for future projects. In your initial post, answer these questions. How does each technique affect the overall profitability of a company? Why is risk identification important to a company? Explain how it factors into the company’s capital budgeting process.

Matters have been taken to arbitration. Imagine you are a consultant and your guidance to the...

Matters have been taken to arbitration. Imagine you are a consultant and your guidance to the Arbitration process is required. You have a couple of questions to explain the method of arbitration process and procedures. 1. What are Domestic Arbitral Awards and Foreign Arbitral Awards? Give an example of a project location and parties subject to a Foreign Arbitral Award? Under what circumstances would a convention award be requested? 2. When do you appoint the arbitrator? What are the qualifications...

Vang Enterprises. recently hired you as a consultant to estimate the company’s WACC. You have obtained...

Vang Enterprises. recently hired you as a consultant to estimate the company’s WACC. You have obtained the following information. (1) The firm's bonds mature in 10 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $945.00. (2) The risk-free rate is 1.25%, the market risk premium is 5.50%, and the stock’s beta is 1.40. (3) The target capital structure consists of 50% debt and 50% common equity. The firm uses the CAPM to...

Question