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As a finance student, you should be able to help Bentley by telling him which companies in Sec - tion B should use the financing

As a finance student, you should be able to help Bentley by telling him which companies in Sec-tion B should use the financing methods listed in Section A.Section A1. Leasing arrangement2. Long-term bonds3. Debt with warrants Friends or relatives5. Common stock: nonrights 6. Preferred stock (nonconvertible)7. Common stock: rights offering8. Convertible debentures9. Factoring (Hint: Factoring is the selling of a firms accounts receivable.). Bull Gator Saloon and Dance Hall:Robert Radcliffe, a professor at the University ofFlorida, is an avid country-and-western music fan and a square dancer. He has just learnedthat a recently developed downtown shopping and entertainment center still has a leaseavailable for the original, renovated building of the First National Bank of Gainesville. Thebank outgrew the building in the late 1950s, and the large open spaces and high ceilingswould be ideal for a country-and-western nightclub. Radcliffe knows the market well andhas often noted the lack of a real kicker bar in Gainesville; the closest being in Starke,about 25 miles from Gainesville. Radcliffe believes that if he can obtain approximately$50,000 for a sound system and interior decorations, he can open a small but successfuloperation in the old bank building. His liquid savings total $15,000, so Radcliffe needs anadditional $35,000 to open the proposed nightclub.G.Golden Gate Aircraft Corporation:Golden Gate Aircraft is a medium-sized aircraft com-pany located just outside San Francisco whose sales distribution is approximately 30 percentfor defense contracts and 70 percent for nonmilitary uses. The company has been growingsteadily in recent years, and projections based on current research-and-development prospectscall for continued growth at a rate of 5 percent to 7 percent a year. Although recent reports ofseveral brokerage firms suggest that the firms rate of growth might be slowing down becauseof the high price of fuel and the softness of the business aircraft market, Golden Gates man-agement believes, based on internal information, that no decline is in sight. The companysstock, which is traded on the Pacific Stock Exchange, is selling at 15 times earnings. This isslightly below the 17 times ratio of Standard & Poors aircraft industry average. The com-pany has assets of $35 million and a debt ratio of 25 percent (the industry average is 23 per-cent). Golden Gate needs an additional $5 million over and above additions to retainedearnings to support the projected level of growth during the next 12 months.H.Schooner Yachts:Schooner Yachts is a closely held company that was founded in 1970 byRuss Breaker to build a top-quality line of sailboats. The companys debt ratio is 48 percent,compared to an average ratio of 36 percent for sailboat companies in general. The stock isowned in equal parts by ten individuals, none of whom is in a position to put additionalfunds into the business. Sales for the most recent year were $12 million, and earnings aftertaxes amounted to $720,000. Total assets, as of the latest balance sheet, were $9.6 million.Schooner Yachts needs an additional $4 million to finance expansion during the current fis-cal year. Given the worldwide growth in leisure-time activities and interest in sailing in par-ticular, the firm can anticipate additional outside capital needs in the years ahead.

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