3. Assuming that the Fabricare acquisition is undertaken

and Roy permits Stuart to purchase an interest in the

combined firm, discuss possible financing alternatives for

both transactions. Do you think that Stuart will have

trouble obtaining bank financing for any amount in excess

of the $110,000 of cash that he currently has available?

Why or why not? If you were Stuart, would you be willing

to pay a full 45% of the value of the firm for 45% of the

ownership in the firm? Why or why not?