III/ Mini cas (7 points)

(I know it's a long job but please I really need your help ...)

Elsa has planned investments over the next 4 years.

It asks you to finalise its financing plan, whichesis not balanced.

Provisional financing plan in thousands of euros (K):

K	2015	2016	2017	2018
Jobs Distribution of dividendses Capital acquisitions Loan repayment Increase in BFR	5 200 20	5 100 25	5 50 35	5 50 45
TOTAL Employment (1)	225	130	90	100
Ressources The CAF Capital increase Increase ines borrowings	135	140	150	160
TOTAL Ressources (2)	135	140	150	160
Annual balancees Ressourc es Jobs (2-1)	- 90	+ 10	+ 60	+ 60
Cumulative balance	- 90	- 80	- 20	+ 40

To balance this financing plan, it envisages 2 solutions:

1 - Either take out a loan at the beginning of201 5, of an amount to be determined, at the annual interest rate of 6%, with a partial deferral of 2 years, repayable by constant amortization over 4 years. Corporate tax rate = 1/3.

2. - Either call on shareholders to increase the share capital by 100,000 at the beginning of 2015. The profitability required by shareholders (in the form of dividends) is 10% of the invested capital (consider that the additional dividends will be paid from 2016)

After incorporating thees agreement es of each solution into the financing plan, you will give a reasoned opinion. Use the attached annex document.

N.B.: Round to K

Annex Final financing plan

Solution 1 Borrowing

K	2015	2016	2017	2018
Jobs Distribution of dividends Capital acquisitions Loan repayments Increase in BFR
TOTAL (1)
Rsourceses The CAF Capital increase Increase in borrowingses
TOTAL(2)
Annual R&E balance (2-1)
Cumulative balance

Solution 2 - Capital increase (1 point)

K	2015	2016	2017	2018
Jobs Distribution of dividendses Capital acquisitions Loan repayment Increase in BFR
TOTAL (1)
Rsourceses The CAF Capital increase Increase in borrowingses
TOTAL(2)
Annual R&E balance (2-1)
Cumulative balance

Your opinion on the impact of each solution: