1. Review the estimate of the beginning balance sheet for Borders Hotel for each of the financing proposals (Exhibits attached). All stock issue and stock compensation should be viewed as organization costs.

2. What is the impact of each financing proposal on the earnings available to Daniels?

3. How attractive would each of the financing proposals be to outside investors?

4. How attractive are the financing proposals to Daniels?

5. What action would you take as Daniels?

Part 2

1. Complete an NVT analysis of the venture.

2. Analyze your findings.

3. Attach a screen shot of the NVT result.

NVT Analysis: