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federal government help with government help with les to nitia 9. what In nesses? financing ou give an entrepreneur who was t 10 What advice

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federal government help with government help with les to nitia 9. what In nesses? financing ou give an entrepreneur who was t 10 What advice start finance a to ovide Situation 2 million John Dalton is well on his way to starting a new venture-Max level" Inc. He has projected a need for $350,000 in initial capital. He Direct plans to invest $150,000 himself and either borrow the additional ations, $200,000 or find a partner who will buy stock in the company. If e capi Dalton borrows the money, the interest rate will be 6 percent. wns on the other hand, another equity investor is found, he expects m all' to have to give up 60 percent of the company's stock. Dalton has ctive forecasted earnings of about 16 percent in operating profits on the firms total assets. Question 1 Compare the two financing options in terms of his projected return on the owner's equity investment.lgnore effect from income taxes. any Venture Business Plan

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