A Company requires a capital infusion of $200,000. It is currently a closely held corporation with less than 50 shareholders. Although the shareholders are not all related to each other, they all know each other and they view the business as a family business. Please refer to the following financial statements:

- ASSETS 2014 - 2013

CURRENT ASSETS

Cash 456,500 - 222,400

Receivables 3,936,400 - 3,320,000

Inventory 89,800 - 100,200

Other assets 119,500 - 84,300

Total current assets 4,602,200 - 3,726,900

LONG TERM ASSETS

Note Receivable 380,600 - 280,700

Equipment (net of depreciation) 975,000 - 1,017,800

Total long term assets 1,355,600 - 1,298,500

TOTAL ASSETS 5,957,800 - 5,025,400

- LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable 2,783,100 - 2,805,700

Note payable (current maturities) 177,550 - 172,550

Other accrued liabilities 165,300 - 114,600

Total current liabilities 3,125,950 - 3,092,850

LONG TERM LIABILITIES

Notes payable (long term) 354,800 - 354,800

Long term accrued liabilities 289,550 - 220,250

Total long term liabilities 644,350 - 575,050

TOTAL LIABILITIES 3,770,300 - 3,667,900

- STOCKHOLDERS' EQUITY

Common stock 300,000 - 300,000

Retained Earnings 1,887,500 - 1,057,500

Total stockholders' equity 2,187,500 - 1,357,500

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 5,957,800 - 5,025,400

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Income Statement 2014 - 2013

Service Contract Revenues 9,700,000 - 6,295,400

Service Contract Costs (7,503,100) (4,957,800)

Gross Profit 2,196,900 - 1,337,600

General and Administrative Expenses (896,000) (756,000)

Operating Income 1,300,900 - 518,600

Gain on sale of equipment 59,900 - 7,700

Interest expense (69,500) (70,800)

Other expense (9,600) (63,100)

Income before taxes 1,281,700 - 455,400

Taxes (451,700) (300,900)

Net Income 830,000 - 154,500

Retained Earnings, Beginning Balance 1,057,500 - 1,053,000

1,887,500 - 1,207,500

Less: Dividends paid 0 - (150,000)

Retained Earnings, Ending Balance 1,887,500 - 1,057,500

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A number of alternatives are available to the company. It can:

Obtain private debt financing

Seek out a private investor(s) who would be willing to share ownership

Seek out offers for a private buy-out

Issue public debt (corporate bonds)

Issue public common stock

From the cost of capital point of view, whats the impact and implications of each alternative? Considering the size of the investment ($200,000) how does this impact of this infusion of capital on the financial statements?