Fire Log, a German firm that produces and sells different cards and packages. Climate change concerns have prompted demand to rocketed and companies replacing their plastic cards with more environmentally friendly alternatives.

To prepare for this rise in demand, the board of directors needs to, first lend an additional factory, second purchase new manufacturing equipment, and finally hire more staff. The initial investment would amount to 15,000 USD. The CFO suggests to seek alternative funding sources, rather than investing their own earnings. The sooner the new factory is operating, the sooner the revenues increase .

A)CEO of the company is asking shareholders for additional contributions. The share capital of the company currently amounts to 30,000 USD. Shareholder Alpha holds 55%, shareholder Beta holds 25% and shareholder Charlie holds 20%. You contact each of them: Alpha and Beta agree to your proposal but Charlie does not have available cash at hand and does not to be diluted.

Based on this information, would you, as a director, propose a share capital increase? Explain the reasons for your decision and under which conditions could the company go ahead with the capital increase.