Question
setso plc has grown from a company with P1,000,000 turnover to one of P10,000,00 and profits of P800,000 a year.The company has always had cash
setso plc has grown from a company with P1,000,000 turnover to one of P10,000,00 and profits of P800,000 a year.The company has always had cash flow difficulties due to its rapid expansion and problems funding its working capital.it had however beeb able to fund expansion from retained earnings overdrafts and other internally generated funding.It wishes to continue its expansion but its concerned of its capital resources. setso is now considering raising P2.00.00 from: *an equity investment from a venture capital firm or *variable interest loan and investment bank repayable in 10 to 15 years discuss the merits and demerits of each of the two sources of finance
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