Question
In: Accounting
Financial bootstrapping is minimizing the need for financial capital and finding unique ways of financing new...
Financial bootstrapping is minimizing the need for financial capital and finding unique ways of financing new businesses, such as obtaining financial resources from family and friends. If you can only choose one loan from a friend, which loan should you choose based on the perspective of the principle of entrepreneurial finance, explain your reasons, can also be explained by giving calculations? A friend lends $ 30,000 for 1 year if you agree to pay back $ 5,000 in interest plus a principal of $ 35,000 at the end of the first year. The second friend only has $ 10,000 to lend and expects a total return of $ 11,500 at the end of the first year. The 3rd friend has $ 40,000 to lend and expects a total return of $ 47,500 by the end of the second year.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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{capital financing} Are the ways in which hospitals obtain
capital different from the ways in which doctors obtain capital?
Why?
Financial experts are familiar with various ways companies can raise capital for financing the firm. Each...
Financial experts are familiar with various ways companies can
raise capital for financing the firm. Each of the several sources
of funds has associated with it some advantages as well as
drawbacks that should be considered in choosing among them. Compare
and contrast the advantages and disadvantages for financing the
firm by issuing common stock versus issuing corporate bonds versus
obtaining loans from private lenders.
Working Capital Financing - Company A reported the following financial information in a recent financial statement...
Working Capital Financing - Company A reported the following
financial information in a recent financial statement ($
milllions):
Sales
$50,272
Cost of sales
37,611
Inventory
5,897
Accounts receivable
2,348
Accounts payable
4,894
(a) Compute the additional working capital financing period for
Company A? (include formulas used to answer problem)
Working Capital Financing - Company B reported the following
financial information in a recent financial statement ($
millions):
Sales
$87,048
Cost of sales
77,739
Inventory
6,638
Accounts receivable
965
Accounts payable...
Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a...
Given the financial statements below for Dragonfly Enterprises,
what is the external financing need for a pro forma increase in
sales of 25% if the firm is operating at 92% capacity? Enter your
answer as the nearest whole (e.g., 123), but do not include the $
sign.
Dragonfly Enterprises
Income Statement ($ Million)
2011
Sales
370
Cost of Goods Sold
226
Selling, General, & Admin Exp.
62
Depreciation
20
Earnings Before Interest & Taxes
62
Interest Expense
12
Taxable...
Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a...
Given the financial statements below for Dragonfly Enterprises,
what is the external financing need for a pro forma increase in
sales of 8% if the company is operating at full capacity? Enter
your answer as the nearest whole (e.g., 123), but do not include
the $ sign.
Dragonfly Enterprises
Income Statement
($ Million)
2011
Sales
370
Cost of Goods Sold
226
Selling, Gen & Admin Exp
62
Depreciation
20
Earnings Before Int & Tax
62
Interest Expense
12
Taxable...
Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a...
Given the financial statements below for Dragonfly Enterprises,
what is the external financing need for a pro forma increase in
sales of 19% if the company is operating at 90% capacity? Enter
your answer as the nearest whole (e.g., 123), but do not include
the $ sign.
Dragonfly Enterprises
Income Statement
($ Million)
2011
Sales
370
Cost of Goods Sold
226
Selling, Gen & Admin Exp
62
Depreciation
20
Earnings Before Int & Tax
62
Interest Expense
12
Taxable...
Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a...
Given the financial statements below for Dragonfly Enterprises,
what is the external financing need for a pro forma increase in
sales of 18% if the company is operating at 90% capacity? Enter
your answer as the nearest whole (e.g., 123), but do not include
the $ sign. Dragonfly Enterprises Income Statement ($ Million) 2011
Sales 370 Cost of Goods Sold 226 Selling, Gen & Admin Exp 62
Depreciation 20 Earnings Before Int & Tax 62 Interest Expense
12 Taxable Income...
Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a...
Given the financial statements below for Dragonfly Enterprises,
what is the external financing need for a pro forma increase in
sales of 18% if the firm is operating at 90% capacity? Enter your
answer as the nearest whole (e.g., 123), but do not include the $
sign.
Dragonfly Enterprises
Income Statement ($ Million)
2011
Sales
370
Cost of Goods Sold
226
Selling, General, & Admin Exp.
62
Depreciation
20
Earnings Before Interest & Taxes
62
Interest Expense
12
Taxable...
Given the financial statements below for Firefly Enterprises, what is the external financing need for a...
Given the financial statements below for Firefly Enterprises,
what is the external financing need for a pro forma increase in
sales of 11%? Enter your answer as the nearest whole (e.g., 123),
but do not include the $ sign.
Firefly Enterprises
Income Statement ($ Million)
2011
Sales
740
Cost of Goods Sold
452
Selling, General, & Admin Exp.
124
Depreciation
40
Earnings Before Interest & Taxes
124
Interest Expense
24
Taxable Income
100
Taxes at 40%
40
Net Income...
Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a...
Given the financial statements below for Dragonfly Enterprises,
what is the external financing need for a pro forma increase in
sales of 12% if the company is operating at full capacity? Enter
your answer as the nearest whole (e.g., 123), but do not include
the $ sign. Dragonfly Enterprises Income Statement ($ Million) 2011
Sales 370 Cost of Goods Sold 226 Selling, Gen & Admin Exp 62
Depreciation 20 Earnings Before Int & Tax 62 Interest Expense
12 Taxable Income...
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